Pandemic spurs farm gate milk price hike

The Canadian Dairy Commission has set aside its usual milk price adjustment formula and is increasing the price paid to farmers by $1.46 per hectolitre effective Feb. 1.

The increase “will partially offset losses incurred due to the COVID-19 pandemic and market trends which have caused revenues to remain below the cost of production,” the commission said.

The increase is expected to translate to a two per cent increase in the price for milk at the processing level but retail milk prices depend on many factors, it said.

The commission also said “it should be noted that the consumer price index for dairy products has risen by only two per cent since 2015, whereas the index for food in general has risen by 10 per cent.”

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