Dairy Farmers of Canada call for delay to farmgate milk price adjustment

The Commission is set to announce final price adjustments for 2024 no later than November 1, but has received requests from several trade bodies including the Canadian Federation of Independent Grocers and Dairy Farmers of Canada (DFC) to hold the routine pricing process and carry out further consultations.

In its recent cost of production survey, the Commission concluded that most indexed costs including interest rates were offset by decreases in other costs such as feed, fuel and oil and fertilizers, resulting only in a ‘modest’ increase in the cost of production.

Using the National Pricing Formula, the body calculated that the price of milk may be adjusted by 1.77% from February 1, 2024, though the exact adjustment may not directly mirror the calculation.

In response, DFC has called on the Commission to delay this adjustment ‘until further notice’.

DFC President David Wiens said: “Dairy farmers and their families are also consumers and experience the high cost of food these days. Recognizing the current level of food inflation and in solidarity with all Canadians, we have recommended the Canadian Dairy Commission delay its application of the price adjustment on milk until further notice.

“That said, the price consumers pay for dairy products is ultimately determined by other players in the supply chain. Our hope is that our decision will result in other actors maintaining the price of dairy products at a time when food inflation hovers around 9%.”

In September, price growth of dairy products decelerated from 6.3% in August to 4.0% in September. Food price growth also slowed down, rising 6.8% and 5.9% in August and September respectively. This is still above the consumer price index, which rose 3.8% year-on-year in September.