Consumers Should Anticipate Higher Milk Prices

Nov 02, 2021

Milk and dairy prices are expected to jump early next year.

It comes as the Canadian Dairy commission recommended an 8.4 percent increase in farm gate milk prices. The commission says the price hike is meant to help dairy farmers offset rising costs for cattle feed and fertilizer. Chantal Paul, a spokeswoman for the Commission told the Canadian Press, we're seeing the cost of production going up quickly and the revenues are not following. The recommendation is expected to be approved by provincial boards in December and take hold in February.

It's unclear what the price hike at the farm gate will mean for consumers when the milk finally reaches grocery stores. Some analysts are suggesting it could mean an increase of 10 percent for dairy products, or even as high as 15 percent. The 8.4 percent being suggested by the commission is nearly double the previous record jump in farm gate prices which was 4.5 percent back in 2017. A spokesman for the dairy processors of Canada says these decisions have ripple effects so it's important the rationale is shared and understood.

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