The federal on-farm milk price hike is now in effect, putting additional pressure on dairy processors, restaurants and consumers.
Farm milk prices rose $6.31 on Feb. 1. The Canadian Dairy Commission, the federal regulator responsible for setting prices and quotas for the dairy industry, said food producers can see the cost of milk increase by an average of 8.4. percent, depending on the amount of butterfat and the fat-free solids content of the product.
Sylvain Charlebois, director of Dalhousie University’s Agro-Food Analytical Laboratory, said the increase could leave some dairy processors, such as cheese makers, struggling to survive. in.
“The price of industrial milk in Canada is three times higher than the price of milk in the US,” he told CTVNews.ca by phone on Friday. So it is very expensive to produce cheese and yogurt.
Researchers at the Agri-Food Analytical Laboratory said in their Food Price Report 2022 that Canadian consumers can expect to pay between 6 and 8% more for dairy products – a higher-than-expected price increases for fruit, meat, seafood, vegetables and baked goods.
The commission also increased the support price for avocado storage from $8,7149 to $9,7923 per kilogram, representing an increase of 12.4%. The advocacy group representing Canada’s dairy farmers has said these price increases are needed to offset the increase in production costs caused by COVID-19. The commission also cited increases in feed, energy and fertilizer costs and said there had been a 5% increase in packaging, labor and transportation costs.
“The increase will partially offset the substantial increase in farmers’ production costs since the start of the COVID-19 pandemic,” Canada’s Dairy Farm told CTVNews.ca in November.
However, Charlebois has called for an end to the quota system and wants new supplies to penetrate the Canadian dairy market.
“Our industry is not competitive,” he said. “What you need to do is expand the system to other dairy farms. Right now, you and I, we can’t be dairy farmers. It’s an exclusive club. ”
Charlebois also believes that the Canadian Dairy Commission should take into account the impact of price increases on dairy processors, restaurants and other industries in the supply chain.
“They are raising prices by 8.4% without even considering what will happen to buy pizza, artisan cheesemakers, anything else. They do not care. It’s not part of their calculation,” he said.
With files from Anthony Vasquez-Peddie of CTVNews.ca