Canadian Dairy Commission postpones farm gate milk price adjustment
Adjustment postponed to May 1, 2024
2 November 2023
2 minute read
By: In October 2023, the Canadian Dairy Commission (CDC) conducted the annual review of Canadian farm gate milk prices. As a result of the review and consultations with stakeholders, the CDC has postponed the farm gate milk price adjustment, representing an increase of 1.77%, to May 1, 2024, instead of February 1, 2024. This increase translates to $0.0153/litre (or just over 1 cent per litre), according to a press release issued by the CDC.
Like most Canadians, dairy farmers have been feeling the pressures of inflation. Despite stabilising feed, fuel and fertiliser costs, producer gains were offset by higher interest rates.
This adjustment means the cost of milk used to make dairy products such as milk, cream, yogurt, cheese and butter for the retail and restaurant sectors will increase by an average of 1.77%. The net impact on consumers is also influenced by other factors in the supply chain such as transportation, distribution and packaging costs. The price paid to farmers is only part of the price paid by consumers.
The CDC works closely with stakeholders, including 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, to determine milk prices.
The new farm gate milk prices will become official once they are approved by provincial authorities.
"Inflation is impacting Canadians and the dairy value chain from farm gate to consumer's plates," said Jennifer Hayes, chair, Canadian Dairy Commission. "The CDC always strives to balance consumer impacts with sustainability of the dairy industry. We thank our valued stakeholders for their useful feedback in helping us make this decision."
