The Canadian Dairy Commission has announced the farmgate price of milk will decrease by 0.0237%, equal to an estimated loss of less than 1 cent per litre of milk sold to processors.
The decrease comes after the CDC’s annual review of Canadian farmgate milk prices and is intended to by implemented by February 1st of 2025.
The review found that 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.
The adjustment means the cost of milk used to make dairy products will cost an estimated 0.0237% less to make.
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 new farmgate milk prices will become official once they are approved by provincial authorities later in 2024.
