February 2, 2005

Canadian dairy prices to rise

Yogurt, cheese and ice cream in Canada are going to cost more, after the Canadian Dairy Commission increased the price of industrial milk.

This is partly to help offset losses incurred by farmers affected by the BSE crisis.

The Alberta Dairy Producers estimate the price of yogurt will go up by one cent a container, cheese for a medium pizza will costs five cents more and a 250-gram block of cheddar will increase by 12 cents.

John Batas, who manages a downtown Calgary pizzeria, says restaurant owners weren't told of the price hike and they'll be forced to pass it along to the customer.

"It's like you're expecting it to happen every year now," said Batas, who spends $1,500 a week on cheese. "It doesn't seem fair to us."

Canadian dairy producers say restaurants are exaggerating the impact of the hike.

"The cost of an average parcel of dairy products for at least 10 years has been under the price of what it is in the United States," farmer Joe Zink said.