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Canadian milk prices frozen for three months
The milk price that Canadian farmers are paid will not be increased for the time being. Initially, the price was to increase on February 1, but the price increase has been postponed for the time being after a call from supermarket organizations.
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The Canadian Dairy Commission is postponing the planned increase in the milk price paid to farmers by three months. This after a call from, among others, the Federation of Independent Supermarket Owners. The price increase will now take effect from May 1, 2024.
The Canadian Dairy Commission is part of the Canadian government and every fall it reviews the prices that farmers are paid for their milk and then recommends a price increase or reduction, which is then implemented in February.
After it became known that prices would rise by 1,77%, the Federation of Independent Supermarket Owners sent a letter asking for price increases to be temporarily frozen. Their call ensured that after consultation it was decided to postpone the price increase. Canadian dairy farmers have also supported this decision.
According to Vice President Gary Sands, a price pause is a good way to keep food prices stable. But he does warn that freezing the prices that farmers receive does not mean that prices in the supermarket will also freeze, as too many other factors apply for that.
As soon as May approaches, Sands wants to reconsider whether a price increase is appropriate. And he will continue to work to further delay the price increase if the time is not yet right. The announcement also puts pressure on other sectors such as poultry and eggs to freeze prices.