Canadian Pizza Magazine

News
Dairy commission drops prices


January 21, 2015
By Canadian Pizza

Jan. 21, 2015,
Ottawa – The Canadian Dairy Commission has
announced a reduction in the support price of skim milk powder
that will be effective March 1, 2015.

Jan. 21, 2015,
Ottawa – The Canadian Dairy Commission has
announced a reduction in the support price of skim milk powder
that will be effective March 1, 2015.

For dairy producers, this decrease in the support price should translate
into a revenue decrease of 1.8 per cent or $1.49 per hectolitre for industrial
milk used to make products such as yogurt, cheese and skim milk
powder, said the Canadian Dairy Commission (CDC) in a news release.

The support price of skim milk
powder will decrease from $6.4754 to $6.3109 per kilogram. The support price
of butter will remain unchanged. Support prices are the prices at which
the CDC buys and sells butter and skim milk powder to balance seasonal
changes in demand on the domestic market. They are also used as
references by provincial marketing boards to price industrial milk.

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“This reduction follows a decrease in the cost of producing milk in
Canada in the last year. This cost decrease can be seen mostly in feed,
milk transportation, fuel, and interest paid,” said Randy Williamson, CDC chairman, in the release. “We are optimistic that this price reduction will
help grow the demand for dairy products.”

The margin received by processors for butter and skim milk powder
purchased by the CDC, as well as the carrying charges collected by the
CDC to pay for the storage of normal butter stocks, will remain
unchanged.

Prices received by producers for fluid milk are determined by provincial
authorities through a process that is separate from this announcement.
The overall price reductions to producers may vary depending on the
pricing decisions made by provincial authorities. The impact of this
decrease at the retail level will be influenced by many factors such as
manufacturing, transportation, distribution and packaging costs
throughout the supply chain.

Restaurants Canada described the decision by the
Canadian Dairy Commission to reduce dairy prices by 1.8 per cent as good news for restaurateurs, consumers and producers.

“We applaud the CDC for listening to us and taking this all-important
first step to keep Canadian dairy affordable for restaurateurs and
consumers,” said Donna Dooher, Restaurants Canada’s interim president
and CEO, in a news release.

“Restaurants want to support the growth of the dairy industry, along
with other Canadian agricultural sectors,” said Dooher. “This decrease
helps us stop our industry’s declining use of dairy, and promote growth
instead. It’s a win for everyone.” 
 

The association said it fully expects dairy processors who make members’
dairy products, such as mozzarella cheese, to pass on
the full price reduction to restaurateurs.