A 2.2% increase to the farm gate milk price in 2023

Nov 02, 2022

OTTAWA, ON, - In October 2022, the Canadian Dairy Commission (CDC) conducted the annual review of Canadian farm gate milk prices. As a result of the review and consultations with stakeholders, the CDC intends to implement the following change on February 1, 2023.

The farm gate milk price will increase by 2.2% which translates to $0.0174 (less than 2 cents per litre). This increase is the result of the National Pricing Formula, a pricing mechanism that was determined by the industry. It takes into account dairy farmers' costs of production as well as the consumer price index. As indicated last June, the increase of the price of milk at the farm level that took place on September 1^st, 2022 was subtracted from the result of the pricing formula.

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. However, investment and productivity gains at the farm offset some of these increases.

The cost of milk used to make dairy products such as milk, cream, yogurt, cheese and butter for the retail and restaurant sectors will increase by an average of 2.2%. 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.

In the last year, the average annual consumer price index for dairy products increased at a comparable rate (6.0%) to all food products (6.3%). In the last five years, the average annual consumer price index for dairy increased by 12%. This compares to 21% for meat, 27% for eggs, and 15% for fish.

The CDC is grateful to the following stakeholders for their contribution to the annual milk pricing process: Dairy Farmers of Canada, Dairy Processors Association of Canada, Consumers' Association of Canada, Retail Council of Canada, Canadian Federation of Independent Grocers and Restaurants Canada.

The new farm milk prices will become official once they are approved by provincial authorities later in 2022.

Source : Newswire.ca

Video: Winter Canola Trial in Mississippi | Can It Work for Double Cropping? | Pioneer Agronomy

Can winter canola open new opportunities for growers in the Mid-South? In this agronomy update from Noxubee County, Mississippi, Pioneer agronomist Gus Eifling shares an early look at a first-year winter canola trial and what farmers are learning from the field.

Planted in late October on 30-inch rows, the crop is now entering the bloom stage and progressing quickly. In this video, we walk through current field conditions, fertility management, and how timing could make this crop a valuable option for double-cropping soybeans or cotton.

If harvest timing lines up with early May, growers may be able to transition directly into another crop during ideal planting windows. Ongoing field trials will help determine whether canola could become a viable rotational option for the region.

Watch for:

How winter canola is performing in its first season in this Mississippi field

Why growers chose 30-inch rows for this trial

What the crop looks like as it moves from bolting into bloom

Fertility strategy, including nitrogen and sulfur applications

How canola harvest timing could enable double-cropping with soybeans or cotton

Upcoming trials comparing soybeans after canola vs. traditional planting

As more growers look for ways to maximize acres and diversify rotations, experiments like this help determine what new crops might fit into existing systems.