Price of milk used for dairy products in Canada will rise 1.5% starting Feb. 1, 2012, Canadian Dairy Commission says

TORONTO , December 2, 2011 (press release) – The Canadian Dairy Commission (CDC) today announced yet another increase in the price of industrial milk. Effective Feb. 1, the price of milk used for dairy products like cheese and yogurt will rise by 1.5%. This price hike comes despite restaurateurs’ concerns about high food costs and their customers’ tight disposable incomes.

“We have told the Dairy Commission what our customers are telling us. In these economic times, Canadians are increasingly looking for value-priced menu options,” says Garth Whyte, President and CEO of the Canadian Restaurant and Foodservices Association (CRFA). “If we want to grow the dairy market in this country, we need more reasonable prices.”

According to CRFA’s Restaurant Outlook Survey for Q3 of 2011, rising food costs are the number one factor having a negative impact on restaurants. The OECD estimates that Canadians already overpay for dairy products to the tune of $2.4 billion per year thanks to the inflated prices caused by our dairy supply management system.

“Those of us who are stuck bringing the cheese platter to a holiday party this year already know how pricey dairy products are,” says Justin Taylor, CRFA’s Vice President of Labour and Supply. “Thanks to the CDC’s decision, we will be paying even more next year.”

Today’s price increase is less than the CDC’s estimated cost of production which rose by 2.2% in 2010; however, prices have climbed nine times faster than cost of production over the previous 16 years. This year CRFA launched a campaign to raise awareness about the inflated cost of dairy products in Canada.

“We have a 40-year-old supply management system where dairy pricing decisions are been made behind closed doors. It’s time we built a dairy system in Canada that is fair and transparent for farmers, processors, restaurateurs and consumers,” says Taylor.

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