Milk consumers will have to pay more for this product on Wednesday due to a price increase.
The milk price paid to producers at the farm increases by 2.2%, which corresponds to an increase of almost 2 cents per liter.
The selling price for milk also rises on Wednesday.
After consultations in late November, the Régie des Marchés Agricoles et Alimentaires du Québec approved a limited increase. For example, in most regions of Quebec, the minimum price for a liter of 2% milk is now $2 and the maximum price is $2.17.
An increase in the producer price for milk affects other dairy products such as cheese, yoghurt and butter.
Negotiations are conducted between the various players in the sector, including retailers and processors, to determine the selling price of these products.
“I would tell you that it’s very likely that we could see an increase in the final price of around the same order of 2% or 2.3% depending on how companies are going to be able to manage their own costs manage,” said Council of Quebec Dairy Industrialists President and CEO Charles Langlois.
Transport costs are taken into account, as is consumer solvency.
“In many cases we see the impact of the increase two, three, four or even six months later depending on the stage of negotiations, which are not always easy with traders,” Ms Langlois added.
Last year, the Canadian Dairy Commission exceptionally approved two increases in the farm gate price of milk to compensate milk producers whose production costs have skyrocketed.
According to dairy industry stakeholders, it would be surprising if there were two increases this year.