Dairy prices will hold steady next year.
It will mark just the third time in four decades that dairy prices will not get a yearly hike, the Canadian Dairy Commission announced Dec. 4.
The CDC, a crown corporation, sets prices at which it will buy and sell surplus butter and skim milk powder to keep market supply-and-demand stable in Canada.
The price sets the minimum price of industrial milk used to produce dairy products and influences table milk prices set by the provinces.
Since support prices started in 1970, prices have not increased just twice – 1988 and 1997.
“Input prices have decreased slightly from their peak levels in 2008 which now allows dairy producers to cover their cost of production,” CDC chair Randy Williamson said. “As a result, the support prices have been left unchanged.”
Dairy Farmers of Canada president Jacques Laforge said it is what the farmer lobby group had expected.
Paul Yanko
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