CDC Raises Support Prices

Feb 15, 2013

The Canadian Dairy Commission has announced it is increasing the support prices for butter and skim milk powder.

The support price for butter will increase from $7.2810 to $7.3379 per kg, and the support price for skim milk powder will increase from $6.3673 to $6.4170 per kg.

These are the amounts at which the CDC buys and sells butter and skim milk powder on the domestic market. They are used as references by the provincial dairy marketing boards to price industrial milk, which is used to make products like yogurt, cheese and butter.

"The change in support price reflects the increase in the cost of inputs, especially the cost of feed," says CDC chair Randy Williamson, Chairman of the CDC. "However, it remains considerably lower than the rate of inflation for food which currently stands at 2.4 percent."

The increase in support prices are expected to translate into a revenue increase of 0.9 percent for producers of industrial millk.

The changes are effective April 1st.

Source: PortageOnline

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