Canadian Pizza Magazine

Price hike means Canadians continue to overpay for dairy products

Dec. 3, 2008, Toronto – Consumers and restaurant owners will continue to be grossly
overcharged for Canadian dairy products with the decision today by the Canadian
Dairy Commission to increase the price of industrial milk on Feb. 1,
2009.  Industrial milk is used to make products such as cheese, yogurt and
ice cream.

“Dairy is pricing itself off the menu of Canadian
restaurants,” says Ron Reaman, vice president, federal for the Canadian
Restaurant and Foodservices Association.  “Today’s decision sends a clear
message to restaurant owners that the dairy industry is not interested in
working with us to grow demand for their products. 

“Given the unjustified, year-over-year increases in
the price of industrial milk, as well as the bleak economic outlook, we
expected a price decrease. We want to work with the dairy industry, but
today’s decision leaves restaurant owners with little choice but to further
rationalize their use of cheese and other dairy products.”

The latest numbers from the CDC show that the cost to
produce industrial milk fell by 2.3% in 2007, but the price went up by 1.06%
last February and by another 2% in September.  Consumers continue to be
overcharged.  The price will go up by another 1% next year.


To make matters worse, new regulations around
compositional standards for cheese that take effect Dec. 14 will further drive
up prices and force consumers and restaurant operators to seek out dairy

In the last 14 years, the price of industrial milk has
skyrocketed 57%, or nearly twice the rate of inflation, while the cost to
produce the milk has risen by a mere 6%.