Canadian milk prices set to rise in 2021

The Canadian Dairy Commission, which oversees the country's production, is set to raise the farmgate price of milk by $1.46/hectolitre in February 2021. This increase is based on the Commission's industry review and is higher than the price adjustment formula that is typically used. The cause for the increase is the effects of COVID on the dairy market which decreased supply and caused farmers to dump milk during the pandemic's peak in the spring. The increase is subject to Provincial Dairy Board approvals next month.