The federal government has minimal control over food prices, says Agriculture Minister Marie-Claude Bibeau’s office. However the Department of Agriculture acknowledged federal regulators raised wholesale prices for milk and butter at a rate higher than general inflation..“Making life more affordable for Canadians has been a core value of our government since 2015,” said a department briefing note Food Price Increase. “The cost of consumer products like fuel, food and other commodities has increased as a result of supply chain disruptions.”.According to Blacklock's Reporter, Statistics Canada yesterday said its benchmark Consumer Price Index increased by 8.1% in June. It was the sharpest increase since January 1983. Food prices were up an average 9% compared to the same period last year..“Federal governments deliberately have minimal direct involvement in managing food prices or production decisions in Canada,” said Minister Bibeau’s briefing note. “Their influence is mainly through measures to ensure an efficient and fair market.”.“The price of food products at the grocery store is driven by many domestic and global factors, such as input costs, marketing, wages and transportation,” said Food Prices. “These prices are also influenced by the international trade environment.”.The Canadian Dairy Commission last February 1 raised wholesale milk prices by 8.4%. The wholesale cost of butter went up 12.5%. The commission stockpiles butter and cheese to maintain prices..The Agriculture minister’s office in a separate briefing note Milk Price Increase For Producers acknowledged federal regulators approved higher costs despite the worst inflation in 39 years. “The price of groceries has increased a lot,” wrote staff..“Raw milk pricing is one of the many factors influencing the wholesale and retail price of dairy products paid by consumers,” said the briefing note. “Other factors include the balance between supply and demand.”.Parliament in 2020 passed Bill C-16 An Act To Amend The Canadian Dairy Commission Act that allowed the agency to borrow $200 million to warehouse surplus butter and cheese to maintain prices. “Producers under supply management are at the heart of the vitality of rural communities across the country,” wrote staff..A StatsCan report Monthly Average Retail Prices For Selected Products said overall retail prices for dairy products increased as much as 11% for cream, 12% for cheese and 18% for butter..The average checkout price for a litre of milk ranges from $1.85 per litre in Manitoba to as high as $3.50 in Ontario.
