Restaurants avoid extra dairy costs

July 18, 2011, Toronto – The Canadian Dairy Commission (CDC) has rejected milk producers' request for a price increase on industrial milk.

The request was made using outdated cost of production data, which showed a large jump in milk production costs, when more recent figures indicate only a modest increase.

The Canadian Restaurant and Foodservices Association (CRFA) recently met with the CDC to express industry concerns about the impact of inflated dairy prices on consumer demand and affordability.

The CRFA estimates that, if granted, producers' requested price increase on industrial milk would have cost the industry over $80 million in additional dairy costs.