The farmgate price of milk will go up May 1, 2024, rather than Feb. 1, after a review of the national pricing formula and consultation with stakeholders.
The increase will be 1.77 percent, or about 1.5 cents per litre for milk going into processing plants.
The Canadian Dairy Commission had already published this increase in October, but “exceptional circumstances” led to the decision to postpone its implementation.
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The pricing formula includes 50 percent of the year-over-year change in cost of production and 50 percent of the change in the Consumer Price Index, or overall inflation.
However, the Canadian Federation of Independent Grocers invoked one of the exceptional circumstances criteria, leading to the consultations with other organizations, including the Consumer Association of Canada, Dairy Farmers of Canada, Dairy Processors Association of Canada, Restaurants Canada and the Retail Council of Canada.
During consultation, DFC said it recommended the delay because of ongoing food inflation.
Grocery stores have been under pressure from consumers and the federal government to stabilize prices, although some observers say most of the price increases are due to multiple factors within the supply chain.
Price changes for consumer products will vary on those factors.
Officials noted Nov. 1 the 1.77 percent increase is well below the current inflation rate of 4.4 percent.
Contact karen.briere@producer.com
