The adjustment, representing an increase of 1.77% was set to come into force in February 2024, but industry voices have insisted the CDC to hold the price for the time being. The adjustment means the cost of milk used to make dairy products such as milk, cream, yogurt, cheese and butter for the retail and foodservice sectors will increase by an average of CAD$0.0153/litre.
On November 1, the Commission announced the increase would apply from May 1, 2024 instead following stakeholder consultations.
“Like most Canadians, dairy farmers have been feeling the pressures of inflation,” the CDC said in a statement. “Despite stabilizing feed, fuel and fertilizer costs, producer gains were offset by higher interest rates.
“The CDC is grateful to the following stakeholders for their contribution to the annual milk pricing process: Dairy Farmers of Canada, Dairy Processors Association of Canada, Consumers' Association of Canada, Retail Council of Canada, Canadian Federation of Independent Grocers, and Restaurants Canada.
“The new farm gate milk prices will become official once they are approved by provincial authorities.”