Udderly atrocious: Price hike on Canadian dairy now in effect
Your grocery bill is about to get a little pricier, again.
Dairy products in Canada cost more starting February 1, according to the Canadian Dairy Commission (CDC).
That’s because the commission says farm gate milk prices will increase by 2.2%, or $0.0174/litre (less than two cents per litre).
The CDC has announced the new farm gate price of milk that will go in effect on February 1, 2023.https://t.co/xjhWdwAKKA
ā Canadian Dairy Commission (@CDC_Dairy) November 1, 2022
The price hike is based on dairy farmers’ cost of production and the country’s inflation rate.
Unfortunately, both of those factors have spiked recently.
“In the last year, producers faced increases in feed costs, fertilizer costs, fuel costs, and interest rates. Disruptions to supply chains continue to put upward pressure on input costs,” reads an announcement from the federal government.
ā Canadian Dairy Commission (@CDC_Dairy) February 1, 2023
According to the announcement, the dairy products affected by this price hike include milk, cream, yogurt, cheese, and butter.
“The net impact on consumers will also be influenced by factors such as transportation, distribution and packaging costs throughout the supply chain. The price paid to farmers is only part of the price paid by consumers,” it adds.
On top of that, Statistics Canada’s latest report saw food inflation jump to 11.4%, the fastest in over 40 years.
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This comes as grocery stores are under intense scrutiny from consumers who suspect that they’re trying to profit off of inflation.
Loblaw had implemented a price freeze on all No Name products to help customers with rising food costs, but it was met with backlash. The price freeze was later lifted in January.
This is the third price hike in a year for dairy in Canada.
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