November 30, 2010

Canada's dairy prices to rise 1.5% in February 2011

The Canadian Dairy Commission (CDC) issued a price increase of 1.5% on the milk used to make cheese, yogurt and ice cream, effective February 1, 2011.

"Record-high dairy prices and low disposable incomes are already driving consumers to choose other menu items in our restaurants. This price increase will drive dairy consumption down even further," says Garth Whyte, President and CEO of the Canadian Restaurant and Foodservices Association (CRFA).

Since 1994, the price of industrial milk has climbed by 59%. In contrast, the consumer price index rose by only 34% and milk producers' costs, according to the CDC's own formula, has only increased approximately 6%.

"Canada's dairy pricing system is designed to be complex to drive prices up and escape public scrutiny. It's time for a fair and transparent dairy pricing system that works for restaurant operators, farmers and consumers," says Whyte.