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Canada milk price will also rise in 2023, but moderately
Milk prices in Canada will increase further next year. The Canadian Dairy Commission has proposed an increase of about 2 Canadian dollar cents per liter from February 2023. This means that the increase is considerably lower than this year.
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Unlike here in Europe, the milk price in Canada is tightly regulated by the government. A national board, with ten representatives from the country's ten provinces, determines the milk price annually. Typically, the provinces agree to the proposal of the Canadian Dairy Commission, which includes representatives from the dairy farming and dairy industry. The proposal attempts to find a balance between the production costs of dairy farmers and the selling prices of dairy products.
Two increases this year
Consumer dairy prices have also risen considerably in Canada, on average by about 6%. These are therefore in line with the overall food price inflation in the country. In addition, the costs for dairy farmers have also increased considerably, in the form of feed, fertilizer and fuel. So high that dairy farmers submitted an unusual request this summer to increase the milk price for the second time this year. As a result, the milk price rose again by about 2 cents per liter in September, after more than 6 cents had already been added to the price in February.
The proposed milk price increase for 2023 of approximately 2 dollar cents (+ 2,2% compared to the basic price) is therefore a lot more moderate. At the end of this year, the provinces will consider the Canadian Dairy Commission's proposal.