Canadian Milk Prices Rise Following Annual Review by Dairy Commission
Source: The DairyNews
The price of milk in Canada has experienced a modest increase of 1.77%, affecting the cost of dairy products such as milk, cream, yogurt, cheese, and butter across the retail and restaurant sectors.
This adjustment, which began on May 1, is not due to the recent testing for avian flu by the federal government but rather stems from the annual evaluation of farm gate milk prices by the Canadian Dairy Commission (CDC).
Farm gate milk prices are the rates that dairy farmers receive directly at their farms. These prices are controlled by the Canadian government through supply management systems designed to stabilize dairy farmers' incomes and align milk supply with domestic demand.
The CDC is instrumental in determining these prices. It considers various factors including feed costs, labor expenses, and other operational costs. The prices are calculated using a cost-of-production formula and are adjusted annually to reflect changes in production costs, market conditions, and regulatory factors such as import controls and production quotas.
The effect of these price adjustments on the final retail price varies, as these regulated farm gate prices only apply to the initial sale from the farm. Beyond this point, the market dictates the final price based on numerous influencing factors.
Farm gate milk prices are the rates that dairy farmers receive directly at their farms. These prices are controlled by the Canadian government through supply management systems designed to stabilize dairy farmers' incomes and align milk supply with domestic demand.
The CDC is instrumental in determining these prices. It considers various factors including feed costs, labor expenses, and other operational costs. The prices are calculated using a cost-of-production formula and are adjusted annually to reflect changes in production costs, market conditions, and regulatory factors such as import controls and production quotas.
The effect of these price adjustments on the final retail price varies, as these regulated farm gate prices only apply to the initial sale from the farm. Beyond this point, the market dictates the final price based on numerous influencing factors.
