Canadian Pizza Magazine

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Dairy price increase goes into effect today


February 1, 2011
By Canadian Pizza

pzpiewithgraterthumbnaiFebruary 1, 2011, Toronto – Effective today, the Canadian Dairy Commission (CDC) will increase by 1. 5 per cent the price of industrial milk used to make cheese, butter, yogurt and ice cream.

The increase comes despite the CDC’s own calculations showing production costs for milk are holding stable.

“When restaurant owners buy cheese, they are forced under the supply management system to pay prices that are 30 per cent higher than frozen pizza makers pay for the exact same product,” says Garth Whyte, president and CEO of the Canadian Restaurant and Foodservices Association (CRFA). “This latest price hike from the CDC will make it even harder for our members to compete.”

Adding to the unlevel playing field, the CRFA says, is the fact that frozen pizza is sold tax-free but consumers are charged up to 13 per cent tax on fresh pizza because of GST and HST.

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“Between dairy pricing and sales taxes, the government has stacked the deck against restaurants, and it’s making pizza night even more expensive for Canadian families,” Whyte adds.

Since 1994, the CDC has increased the price of industrial milk by almost 60 per cent. Thanks to innovation and efficiencies, the cost of milk production has grown by only six per cent in that time.