Milk Prices Set To Go Up Another 2.5% Due To Inflation
The Canadian Dairy Commission (CDC) has approved a second milk price increase this year to help offset increased production costs due to inflation.
The recommended farm gate milk price rise beginning September 1 is $1.92/hl or less than 2 cents per liter. This will mean a 2.5% increase, on average, in the price of milk used in the manufacture of dairy products for retail and food service consumption.
A second hike is a rare occurrence as the CDC normally only reviews farm gate milk prices once a year. On February 1, the agency approved an 8.4% rise, amounting to 6 cents per liter. The second review was requested by the Dairy Farmers of Canada due to the current inflation. According to CDC, the September increase will be deducted from the adjustment during the regular price review on February 1, 2023.
The consumer price index (CPI) for dairy increased by 7.7% in the last five years, which is lower compared to increases in other animal-source foods such as 14% for meat, 21% for eggs, and 32% for fish.
May’s CPI reading broke a new record with an increase of 7.7%, as reported yesterday. It’s the highest annual rise for almost 40 years.
Information for this briefing was found via the Canadian Dairy Commission the sources mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
