Quote:
Originally Posted by Azure
Increases are far beyond what inflation seems to be at.
|
That's true, but keep in mind that every sector experiences inflation differently. Gas is up 32.8%, food 3.9%, meat 9.5%, and housing 4.8%.
https://www.bbc.com/news/business-58986399
Not to defend Canadian Dairy (because it's stupid to propose an 8% increase without providing justification), but feedstuffs are up A LOT. If I had to render a guess, I would imagine in the range of 35-40% minimum in Alberta in the last year and a half. Ontario actually had an EXCELLENT harvest, but I would guess in the range of 30-35% there due to market demand. Feed stuffs represent about 2/3 of the total cost to produce an animal commodity.
Also keep in mind the boards set the price for that commodity that the processor has to pay, factoring in a cost of production. Today, that is helping many stay in business because there is an incredible amount of market volatility in inputs. The retailor charges whatever the heck they want at the end of the day, and really is the one making the biggest cut.