Dairy Farmers Want Second Price Hike This Year
MONCTON–Got milk? If you don’t, it will cost you even more to buy some this year, if a request from the Dairy Farmers of Canada is approved.
They farmers are looking for price increases for the second time this year due to rising costs pegged to inflation.
Dairy farmers say they are facing never-before-seen price increases for the goods and services needed to produce milk, that includes fertilizer (44 percent more expensive), fuel (32 percent more expensive) and animal feed(8 more expensive).
They say the upward pressure on costs is expected to continue.
The dairy farmers are hoping the Canadian Dairy Commission will consider an advance adjustment to the farm gate price of milk. Normally, this is changed just once a year.
The farmers’ request comes just a few months after another price hike. On Feb. 1, the commission upped the farm gate milk price by six cents per litre.
The commisisson is a federal organization that runs Canada’s dairy industry and supply management system. If it accepts farmers’ request to raise prices again this year, the increase would come into effect on September 1 and would be deducted from any price increase that may result from the routine price review in the fall.
Dairy farmers haven’t said exactly how much of an increase they are seeking.
The commission will hold consultations this month and decisions are expected by mid-June.
Tara Clow is the news director with 91.9 The Bend in Moncton, a Huddle content partner.