January 7, 2012

Canada's milk prices to hike

The Canadian Dairy Commission announced Friday (Jan 6) that the price of dairy products in the country will increase by 1.5% beginning February 1.

"Our data show that the cost of producing milk in Canada has increased by 2.2% over the last 12 months" said Randy Williamson, chairman of the Canadian Dairy Commission, a Crown corporation. "In particular, the cost of feed increased by almost 10% and the cost of fuel by over 20%. This 1.5% increase in support prices is about half of the current inflation rate for food."

But it's a move that has upset officials at the Canadian Restaurant and Foodservices Association.

"If we want to grow the dairy market in this country, we need more reasonable prices," the association's president and CEO Garth Whyte said.

The move to raise dairy prices will affect products such as milk, butter, cheese and yoghurt.

"Those of us who are stuck bringing the cheese platter to a holiday party this year already know how pricey dairy products are," said Justin Taylor, CRFA's vice president of labour and supply. "Thanks to the CDC's decision, we will be paying even more next year."

The association said the 40-year-old supply management system makes decisions behind closed doors and it called for a "fair and transparent" dairy supply management system for "farmers, processors, restaurateurs and consumers."