Dairy prices to rise 1.5% in February 2011

TORONTO, Nov. 29 /CNW/ - Despite CRFA's call for more reasonable dairy prices, the Canadian Dairy Commission (CDC) issued a price increase of 1.5% on the milk used to make cheese, yogurt and ice cream, effective Feb.1, 2011.

"Record-high dairy prices and low disposable incomes are already driving consumers to choose other menu items in our restaurants," says Garth Whyte, President and CEO of the Canadian Restaurant and Foodservices Association (CRFA). "This price increase will drive dairy consumption down even further."

Since 1994, the price of industrial milk has climbed by 59%. In contrast, the consumer price index rose by only 34% and milk producers' costs, according to the CDC's own formula, has only increased approximately 6%.

"Canada's dairy pricing system is designed to be complex to drive prices up and escape public scrutiny," says Whyte. "It's time for a fair and transparent dairy pricing system that works for restaurant operators, farmers and consumers."

During the CDC's annual stakeholder's consultation on Nov. 18, CRFA sought:

• a price roll-back for industrial milk to bring prices in line with inflation;
• more emphasis on efficient farms when calculating the cost of production; and
• a level playing field in the price of cheese offered to frozen and fresh pizza manufacturers.

To see CRFA's written submission, click here.

For further information:

Prasanthi Vasanthakumar, Communications Specialist, 416-649-4254 or [email protected]