Ottawa – After conducting an annual review of Canadian farmgate milk prices, the Canadian Dairy Commission will implement the following changes on Feb. 1, 2025, in nine out of 10 provinces. Newfoundland and Labrador will not implement the changes.
The farmgate price of milk will decrease by 0.0237 per cent, which translates to less than one cent per litre of milk sold to processors. This decrease is the result of the National Pricing Formula, a pricing mechanism that was determined by the industry, which considers dairy farmers’ costs of production as well as the consumer price index.
While the general inflationary environment was above Canada’s targets in 2023, on-farm productivity gains and certain input costs, such as feed, were lower and helped balance total costs of production.
This adjustment means the cost of milk used to make dairy products such as milk, cream, yogurt, cheese and butter for the retail and restaurant sectors will decrease by 0.0237 per cent. The net impact of this decrease on retail prices is unknown since retail prices are also influenced by other factors in the supply chain such as labour, transportation, distribution and packaging costs. A change in price paid to farmers for their milk does not necessarily translate to a similar retail price change as it is only one of the elements that affect prices for consumers.
The following stakeholders contributed to this year’s milk pricing review process: Dairy Farmers of Canada, Dairy Processors Association of Canada, Canadian Federation of Independent Grocers, Restaurants Canada, and Retail Council of Canada.
The new farmgate milk prices became official after being approved by provincial authorities on Nov. 27 in nine out of 10 provinces. Newfoundland and Labrador will not move forward with a pricing adjustment.
All price adjustments will come into effect on Feb. 1, 2025, and are accessible on the Canadian Dairy Information Centre website.