No Change in the Support Prices for Butter and Skim Milk Powder on February 1, 2018

Dec 04, 2017

The Canadian Dairy Commission (CDC) announced today its decision to maintain the current support prices for butter and skim milk powder. As of February 1, 2018, the support price for butter will therefore remain at $8.0062 per kg and the support price for skim milk powder will remain at $4.5302 per kg.

“Despite a small reduction in the cost of producing milk in Canada, we feel that for the sake of the industry’s stability, it is best to leave the support prices of butter and skim milk powder where they currently stand,” said Alistair Johnston, CDC Chairman.

The margin received by processors for butter purchased by the CDC under the Domestic Seasonality Program will remain unchanged. Carrying charges collected by the CDC to pay for the storage of normal butter stocks will also remain unchanged.

The support price for butter is used by the CDC when buying and selling butter under its Domestic Seasonality Program. This program balances seasonal changes in demand on the domestic market.

The Canadian Dairy Commission, a Crown corporation created in 1966, is a key facilitator within the Canadian dairy sector. It is mandated to provide efficient milk producers with the opportunity to get a fair return on their labour and investment, and to ensure that Canadian consumers are provided with adequate supplies of quality dairy products. The CDC helps design, implement, and administer policies and programs to support milk producers and processors.

Source: AAFC

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