Farm gate milk price increase approved for 2023 amid rising costs

The Canadian Dairy Commission approved an increase in farm gate milk prices Tuesday, saying residents will pay just under two cents more per litre.

The price increase is expected to come into effect in February 2023 with the commission saying the surge is based on the rising cost of production.

The farm gate price is the amount that farmers will receive for their product.

The price hike will see all dairy products – including butter, cheese, ice cream and yogurt – increase in price though some products will be affected more than others.

The Dairy Commission’s Director of Policy and Economics, Matthew Gaudreau said that a product’s price can depend on its physical makeup.

“The 2.2 per cent applies to milk going into all dairy products, but it won’t impact all dairy products in the same way because they use a different mix of fat and protein in the final recipe,” Gaudreau said.

His comments came during a virtual news conference to discuss the approved price increase, the first time the commission has presented its decisions in such a format.

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The Crown corporation, which oversees Canada’s dairy supply management system, approved two price hikes in 2022.

A 2.5 per cent increase, or roughly two cents per litre, took effect in September and an 8.4 per cent increase, or six cents per litre, happened in February.

Altogether, the total 12-month farm gate milk price increases amount to roughly 10 cents per litre, or 13.1 per cent.

The increase planned for February will become official once approved by provincial authorities.