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Milk Prices Expected To Increase This Fall

As expected, the price of milk will be going up for a second time this year.

The Canadian Dairy Commission, which governs what farmers are paid for the milk they produce, approved another 2.5 percent hike in farmgate milk prices slated for September 1st. That's on top of the 8.4 percent hike that came into effect back in February.

It's the first time two separate increases in milk prices have been approved in a single year, but dairy producers say they are facing higher prices for inputs like fertilizer and feed, following last summer's drought on the prairies.

Canada's food professor, Dr. Sylvain Charlebois, who's been critical of the CDC in the past, says the hike this fall could have been worse. Charlebois says the commission is beginning to listen to consumers and the concerns many have when it comes to food inflation. The price hiked approved this week, will mean the price for milk and other dairy products will be climbing again this fall.

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