June 15th, 2024

Canadian Dairy Commission delays farmgate milk price hike by three months

By The Canadian Press on November 1, 2023.

The Canadian Dairy Commission says it’s delaying a planned increase to the farmgate price of milk by three months after calls to pause increases as the food industry grapples with pressure to stabilize food prices. Dairy cows are seen at a farm Friday, August 31, 2018 in Sainte-Marie-Madelaine Quebec. THE CANADIAN PRESS/Ryan Remiorz

OTTAWA – The Canadian Dairy Commission says it’s delaying a planned increase to the farmgate price of milk by three months as the food industry grapples with pressure to stabilize food prices.

The commission, a Crown corporation, reviews the price dairy farmers are paid for their milk every fall.

In October, the commission said that according to its pricing formula, the price of milk at the farm level could go up by 1.77 per cent in February.

The Canadian Federation of Independent Grocers and the Dairy Farmers of Canada then called for a pause or delay on increases to the farmgate price of milk.

On Wednesday, the dairy commission said the increase of 1.77 per cent will go into effect on May 1, 2024, instead of February 1, when it would normally take place.

Canada’s food supply chain is under pressure from the federal government to keep prices steady after high inflation and a rapid rise in interest rates have increasingly squeezed consumers’ budgets.

This report by The Canadian Press was first published Nov. 1, 2023.

Share this story:

8
-7
Subscribe
Notify of
0 Comments
Inline Feedbacks
View all comments