The Canadian Dairy Commission (CDC) announced a 2.5% mid-year adjustment to the farmgate price of milk to take effect on September 1, 2022. This adjustment came at the request of the Dairy Farmers of Canada (DFC) due to significant increases in the cost of farm inputs in recent months. As part of this announcement, the CDC also announced a 2.3% increase in the butter support price for its storage program. This reflects both the farm price increase and an increase in the regulated make allowance of butter of 2.5%.

The price adjustment will be deducted from any price increase that may result from the regular price review later this fall. 

During the pricing consultations, DPAC requested that the CDC consider an upward adjustment in the regulated make allowance on butter as part of the broader consultations. Like most Canadian businesses, dairy processors’ operating costs, beyond just the farmgate price of milk, have significantly increased over the past year. Estimates based on Statistics Canada data suggest that processor costs have increased by more than 12% since August 2021, largely related to increases in energy, packaging and materials costs. 

Throughout this consultation, DPAC’s priority was to ensure that the CDC’s decision making was transparent, based on sound rationale and balanced the needs of everyone in the system from farm to consumer. 

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