The Dairy Commission of Canada has approved an increase in the price of second rare milk for this year.
The Crown corporation, which oversees Canada’s dairy supply management system, says farm milk prices will rise by about two cents a liter, or 2.5 per cent, on September 1.
The increase comes after milk prices rose six cents a liter, or about 8.4%, on February 1.
The commission says that when prices fall again this fall as usual, the mid-year price increase approved for September 1 will be deducted from any adjustments for next February. Prices are usually reviewed once a year.
The decision comes at the request of Dairy Farmers of Canada in May for a mid-year increase in milk prices due to high inflation.
The industry pressure group says farmers are facing unprecedented price increases for the goods and services they need to produce milk.
The commission said in a note to stakeholders, including processors, retailers and restaurants, that rising milk prices will partially offset rising production costs due to current inflation.
“The costs of food, energy and fertilizers have been particularly affected, with increases of 22%, 55% and 45% respectively since August 2021,” the commission said.
This report from The Canadian Press was first published on June 21, 2022.