Canadian dairy farmers have called for no increase in the price of milk to provide a boost to Canadians turned off by grocery store prices.
In a statement released last Friday, the country’s dairy industry association pointed out that, according to calculations by the Canadian Dairy Commission (CCL), it was justified to increase the agricultural price of milk by 1.77%.
However, the producers confirmed that they were prepared to forego this increase “until further notice”.
“Aware of current food inflation and in solidarity with all Canadians, we have recommended that the Canadian Dairy Commission postpone the application of the milk price adjustment,” commented Dairy Farmers of Canada President David Wiens.
He called on other players in the industry, such as processors and grocers, to also work to maintain the price of milk at current prices.
“We hope our decision will encourage these other players to keep dairy prices at their current levels while food inflation is around 9%,” Mr Wiens said.
Last year, the CDC ordered a 2.2% increase in the agricultural price of milk, resulting in an increase of 1.74 cents per liter.
According to the latest available CCL data, milk consumption in the country tends to stagnate with a slight decrease in consumption of 0.6% between July 2022 and July 2023. The consumption of yogurt and butter is also declining, the data is accompanied by increases in cream, cheese and ice cream balanced.
In Quebec, the price of milk is set by the Régie des Marchés Agricole et Alimentaires. The price of a liter of 2% milk is currently a minimum of US$2 and a maximum of US$2.17, with this amount rising in remote regions and the Magdalen Islands.