November 29, 2010, Ottawa – Today the Canadian Dairy Commission (CDC) issued a 1.5 per cent price increase on the milk, effective Feb. 1, 2011.
“Record-high dairy prices and low disposable incomes are already driving consumers to choose other menu items in our restaurants,” says Garth Whyte, president and CEO of the Canadian Restaurant and Foodservices Association (CRFA). “This price increase will drive dairy consumption down even further.”
The CRFA reports that since 1994, the price of industrial milk has climbed by 59 per cent. In contrast, the consumer price index rose by only 34 per cent, and milk producers’ costs, according to the CDC’s own formula, has increased approximately six per cent.
“Canada’s dairy pricing system is designed to be complex to drive prices up and escape public scrutiny,” says Whyte. “It’s time for a fair and transparent dairy pricing system that works for restaurant operators, farmers and consumers.”
Earlier this month, the CRFA lobbied the CDC for just that. During the CDC’s annual stakeholder’s consultation on November 18, the CRFA sought:
- A price roll-back for industrial milk to bring prices in line with inflation;
- More emphasis on efficient farms when calculating the cost of production; and
- A level playing field in the price of cheese offered to frozen and fresh pizza manufacturers.
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