Canadian Pizza Magazine

Features Business and Operations Finance
Something sinister in dairy prices


August 20, 2008
By Canadian Pizza

Topics

As autumn dawns
on the nearing horizon, bored youngsters have returned to their
classrooms, revitalized by the aroma of new erasers and starched
pristine clothes. Somewhere under the surface, behind the traditional
school pizza lunches lurks something sinister – industrial mathematics.

As autumn dawns on the nearing horizon, bored youngsters have returned to their classrooms, revitalized by the aroma of new erasers and starched pristine clothes. Somewhere under the surface, behind the traditional school pizza lunches lurks something sinister – industrial mathematics.

While the charges and beneficiaries of our weekly morning pizza deliveries attempt the simplest of equations, the dairy industry has laid forth a new quiz for all: declining consumption patterns, added to an aging population, subtracting technological improvements in the manufacturing process, divided by the current economic state equals delivery surcharges and unscheduled cheese price hikes.

Now, if I really understood math, I wouldn’t be pondering the conceptual impact an unplanned two per cent price hike had on the foodservice industry. That said, even the stellar Ontario public school system education afforded to this editor still underscores that something in this mathematic equation stinks worse than old Limburger.

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The increase in cheese prices on Sept. 1 suggests that there is a greater need for some social education for the dairy industry. Canadian dairy prices already rank among the highest in the world and we’ve encountered no significant shortage in supply, as in relation to wheat. Offshore markets, such as China and India, can’t produce enough domestic dairy products to meet demand – giving reason to explore export value over a declining domestic market.

Makes sense to some … unless, of course, you're in business that involves any kind of dairy product.