Canadian Dairy Commission postpones farm gate milk price adjustment

Canada

Regulation & Compliances

Market & Price Trends

Published Nov 2, 2023

Tridge summary

The Canadian Dairy Commission (CDC) has postponed a farm gate milk price adjustment of 1.77%, which was originally set for February 1, 2024, to May 1, 2024, due to inflation pressures faced by dairy farmers. This increase in milk prices will affect the cost of dairy products for the retail and restaurant sectors, with an average increase of 1.77%. The decision was made in consultation with various stakeholders in the dairy industry and will be official once approved by provincial authorities.

Disclaimer: The above summary was generated by a state-of-the-art LLM model and is intended for informational purposes only. It is recommended that readers refer to the original article for more context.

Original content

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 ...

Source: The Cattle Site