The cost of milk at farms has risen by 2.3% since Sunday. This increase is expected to lead to a modest rise of 2% to 3% in dairy prices at grocery stores. The Canadian Milk Commission (CMC) announced this price adjustment last October, setting the nation’s farm gate price. The increase amounts to over 2 cents per liter of milk sold to processors.
Dairy Prices Set to Rise in Grocery Stores
Experts, including Sylvain Charlebois from McGill University, describe this rise as “modest and reasonable.” This perspective comes in light of a significant 21% price jump in dairy products over the past five years.
Historical Price Trends
In recent years, the farm gate price for milk has seen notable fluctuations:
- In 2021, producers received a 8.4% increase.
- The total increase for 2023 is 4.7%, which includes a special advance of 2.5% granted in September 2022.
- Last year, there was a slight decline of 0.0237% in farm prices.
Monitoring Dairy Production Costs
Every year, the Canadian Milk Commission surveys over 200 dairy producers across the country. This research helps them determine the costs associated with producing milk and cream.
In summary, the recent rise in dairy prices due to an increase in farm milk costs is projected to have a direct but limited impact on the prices consumers see in stores.
