The Canadian Dairy Commission has approved a request from the Dairy Farmers of Canada for a second 2022 increase in the price of farmgate milk.
It is an unusual development because in most years, there is a single price adjustment made in February. This year that increase was six cents a litre or about 8.4 percent.
However, rising costs for feed and energy prompted the second increase of about two cents per litre that will go into effect September 1st.. The Dairy Commission says an important part of its mandate is to provide efficient producers with the opportunity to get a fair return for their labour and investment. Feed, energy, and fertilizer costs have jumped 22 per cent, 55 per cent and 45 per cent respectively since August 2021.
The Dairy Commission did say that this increase will be deducted from the February 2023 price adjustment.
The September increase will tack on an additional 2.5 per cent for milk used to make products such as milk, cream, yogurt, cheese and butter for the retail sector and the food service industry. The Dairy Commission says the net impact on consumers will also be influenced by transportation, distribution and packaging costs.
