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Canada to raise farm milk prices by 2.2% in 2023

View: 3 Author: Site Editor Publish Time: 2022-11-14 Origin: site

Canada to raise farm milk prices by 2.2% in 2023

The Canadian Dairy Council (CDC) conducted its annual review of farm milk prices in October 2022. Based on review and discussions with stakeholders, CDC plans to make the following adjustments on February 1, 2023.

Milk prices will rise by 2.2%, equivalent to $0.0174 (less than 2 cents a litre). The National Pricing Formula, an industry-determined approach to pricing, should be responsible for this growth. It takes into account both the cost of dairy farmers to produce milk and the consumer price index. As stated in June, the increase in farm milk prices on September 1, 2022 was excluded from the pricing formula.

The cost of feed, fertilizer, fuel and interest rates have all risen over the past year. Input costs are still rising due to supply chain issues. But some of that growth was offset by investment and productivity gains on farms.

Milk, which is used to make dairy products such as milk, cream, yogurt, cheese and butter, will increase the average cost in stores and restaurants by 2.2%. The net impact on consumers will also be affected by factors such as shipping, distribution and packaging costs at each step of the supply chain. Only part of the price paid by consumers goes to farmers.

Over the past year, the average annual growth rate of the CPI for dairy products was 6.0%, about the same as that for all food products (6.3%). Over the past five years, the average annual growth rate of the CPI for dairy products has been 12%. This compares to 21% meat, 27% eggs and 15% fish.

By the end of 2022, the new farm milk prices will be officially announced after approval by provincial authorities.