Milk prices in Canada are anticipated to go up once more in the brand new 12 months.
The Canadian Dairy Commission stated Tuesday it has accepted a rise in farm gate milk prices of about 2.2 per cent, or simply beneath two cents per litre, efficient Feb. 1, 2023.
The Crown company, which oversees Canada’s dairy provide administration system, stated the rise relies on the rising price of manufacturing.
It comes after the fee accepted two value hikes in 2022: A 2.5 per cent enhance, or roughly two cents per litre, in September and an 8.4 per cent enhance, or six cents per litre, in February.
Altogether, the overall 12-month farm gate milk value will increase quantity to roughly 10 cents per litre, or 13.1 per cent.
The enhance deliberate for February will develop into official as soon as accepted by provincial authorities.
The value hike will see all dairy merchandise — together with butter, cheese, ice cream and yogurt — enhance in value although some merchandise can be affected greater than others.
“It applies to all merchandise however not all merchandise can be impacted the identical means as a result of they use a distinct combine of fats and protein in the ultimate recipe,” stated Matthew Gaudreau, the dairy fee’s director of coverage and economics.
“The 2.2 per cent applies to milk going into all dairy merchandise, however it will not impression all dairy merchandise in the identical means.”
The farm gate milk value is only one issue that goes into the retail value of milk, he added.
Other components alongside the availability chain may have an effect on the ultimate product value of dairy merchandise, Gaudreau stated.
His feedback got here throughout a digital information convention to talk about the accepted value enhance — the primary time the fee has offered its selections in such a format.
Jennifer Hayes, chairperson of the Canadian Dairy Commission, stated the choice to maintain a information briefing comes in response to public requests for extra transparency.
“Canadians in basic and the media have been asking for extra openness on the half of the dairy fee — who we’re, what we do, our processes, what our position is in the availability administration system — so that is actually in response to that,” she stated.
“We hope that we’re rising to meet that exact want and problem.”
This report by The Canadian Press was first revealed Nov. 1, 2022.