The Canadian Dairy Commission said Tuesday it will recommend that the farm gate price for milk be increased effective Sept. 1 by $1.92 per hectolitre.
That increase, which works out to 1.92 cents per litre, “will partially offset increased production costs due to inflation,” the CDC said in a release, noting the costs of cattle feed, energy and fertilizer costs have risen 22, 55 and 45 per cent respectively since last August.
The CDC on Tuesday separately announced an increase to its support price for butter, also effective Sept. 1, boosting that rate from to $10.0206/kg, up from $9.7923.
“The new farm gate milk prices are to become official on approval from provincial dairy authorities, which is expected in mid-July, the CDC said.
The Sept. 1 milk price adjustment translates to a 2.5 per cent increase on average for the price for milk used in the manufacture of retail and foodservice dairy products such as milk, cream, yogurt, cheese and butter, the commission added.”
https://www.agcanada.com/daily/mid-y...roved-for-milk
If my math is correct, that means the farm gate price is $0.768/litre. I wonder how much a the retail price will go up to compensate for the extra two cents going to the producer.
Edit: my math may be wrong, but my point is a 2 cent increase for the producer is fairly insignificant to the consumer, unless everyone else tacks on an increase along the way.