Get ready to pay a lot more for that refreshing glass of milk, says Blacklock’s Reporter..The federal Dairy Commission has approved wholesale price hikes it blamed on higher pandemic costs for farmers and will see consumers face an expected double-digit increase in retail prices for milk and dairy products this winter..“The increase in producers’ revenues will partially offset increased production costs due to the COVID-19 pandemic which caused revenues to remain below the cost of production,” the commission wrote in a notice..The six cents a litre hikes for wholesalers take effect February 1..“This will increase by an average 8.4% the cost of milk used to make dairy products for the retail and restaurant sectors,” wrote the Commission..Actual checkout prices would be higher for products from dine-in pizzas to supermarket yogurt..The commission also approved a 5% increase in milk processing costs..“In order to reflect these changes the support price for butter used by the commission in its storage programs will increase from $8.71 to $9.79 per kilogram on February 1, an increase of 12.4%,” wrote analysts..Actual checkout price hikes cannot be predicted, said the commission..“The impact of these adjustments on retail prices will depend on many factors such as manufacturing, transportation, distribution and packaging costs,” said the notice..Canadians nationwide are paying a range of prices for dairy products, by Statistics Canada estimate. The price of a litre of milk runs from an average $1.73 in Manitoba to $2.47 in New Brunswick, $2.50 in Québec and Prince Edward Island, $2.54 in Saskatchewan, $2.56 in British Columbia, $2.58 in Alberta, $2.70 a litre in Nova Scotia, $3.13 in Newfoundland and Labrador and $3.33 in Ontario..The check-out price for a pound of butter similarly ranges from $4.96 in Québec to $5.05 in Saskatchewan, $5.08 in British Columbia and Ontario, $5.09 in Manitoba, $5.22 in Alberta and New Brunswick, $5.25 in Nova Scotia, $5.29 in P.E.I. and $5.47 in Newfoundland and Labrador..The dairy hikes came after Bank of Canada Governor Tiff Macklem warned overall inflation would run “close to 5%” this winter and linger through much of 2022..“We know higher prices are challenging Canadians and making it harder for them to cover their bills,” Macklem told reporters October 27..“I want to assure you inflation is not going to stay as high as it is today, even if it is going to take somewhat longer to come down..“We recognize inflation is actually likely to move a little higher in the remaining months of this year. It’s currently running around 4.5%. We think it’s going to move up close to 5%. Then over the course of next year we think it will come back down.”
Get ready to pay a lot more for that refreshing glass of milk, says Blacklock’s Reporter..The federal Dairy Commission has approved wholesale price hikes it blamed on higher pandemic costs for farmers and will see consumers face an expected double-digit increase in retail prices for milk and dairy products this winter..“The increase in producers’ revenues will partially offset increased production costs due to the COVID-19 pandemic which caused revenues to remain below the cost of production,” the commission wrote in a notice..The six cents a litre hikes for wholesalers take effect February 1..“This will increase by an average 8.4% the cost of milk used to make dairy products for the retail and restaurant sectors,” wrote the Commission..Actual checkout prices would be higher for products from dine-in pizzas to supermarket yogurt..The commission also approved a 5% increase in milk processing costs..“In order to reflect these changes the support price for butter used by the commission in its storage programs will increase from $8.71 to $9.79 per kilogram on February 1, an increase of 12.4%,” wrote analysts..Actual checkout price hikes cannot be predicted, said the commission..“The impact of these adjustments on retail prices will depend on many factors such as manufacturing, transportation, distribution and packaging costs,” said the notice..Canadians nationwide are paying a range of prices for dairy products, by Statistics Canada estimate. The price of a litre of milk runs from an average $1.73 in Manitoba to $2.47 in New Brunswick, $2.50 in Québec and Prince Edward Island, $2.54 in Saskatchewan, $2.56 in British Columbia, $2.58 in Alberta, $2.70 a litre in Nova Scotia, $3.13 in Newfoundland and Labrador and $3.33 in Ontario..The check-out price for a pound of butter similarly ranges from $4.96 in Québec to $5.05 in Saskatchewan, $5.08 in British Columbia and Ontario, $5.09 in Manitoba, $5.22 in Alberta and New Brunswick, $5.25 in Nova Scotia, $5.29 in P.E.I. and $5.47 in Newfoundland and Labrador..The dairy hikes came after Bank of Canada Governor Tiff Macklem warned overall inflation would run “close to 5%” this winter and linger through much of 2022..“We know higher prices are challenging Canadians and making it harder for them to cover their bills,” Macklem told reporters October 27..“I want to assure you inflation is not going to stay as high as it is today, even if it is going to take somewhat longer to come down..“We recognize inflation is actually likely to move a little higher in the remaining months of this year. It’s currently running around 4.5%. We think it’s going to move up close to 5%. Then over the course of next year we think it will come back down.”