Rising steadily since 2020, inflation has heavily impacted consumer pricing, especially groceries.
And it turns out one food staple, two per cent milk, costs more in Kelowna, B.C., than in other major markets in Western Canada.
That’s according to a recent report issued by Field Agent Canada, a business that collects information and insights.
The annual Canadian Fluid Milk Report says the average price for four litres of two per cent milk increased three per cent since its last study in March 2023.
“In fact, 19 out of 20 markets that we measured saw the price of four litres of milk increasing from March 2023 to May 2024,” reads the report.
It says Sudbury, Ont., has the least expensive average price of two per cent milk (based on a four-litre purchase) at $1.51 per litre. That’s around 10 per cent cheaper than the national average of $1.68 per litre.
The cities with the most expensive averages were Charlottetown, P.E.I., and Moncton, N.B., at $2.09 per litre – around 24 per cent higher than the national average.
In Kelowna, the price of a four-litre jug ranged per store, from $5.55 to $8.89. In turn, the average per-litre price was $1.62.
That’s higher than Burnaby at $1.59 and Victoria at $1.61.
In Edmonton, the average per-litre price was $1.52, while it was $1.58 in Calgary. Regina came in at $1.56.
“Due to Canada’s inefficient system of dairy quotas and ‘cost-plus’ model for setting the farm gate milk price, we see consumers in some markets, primarily in Atlantic Canada, paying substantially more for this grocery staple,” said Jeff Doucette, general manager of Field Agent Canada.
“While it could mean the end of local dairy production, consumers in these smaller markets should push their governments to reform the dairy production system to help bring down the price of milk in these markets.”
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Field Agent says it also looked across the border, to the U.S., where milk was around 28 per cent cheaper than the average price in Canada.
Further, Field Agent added that the price of milk could continue to rise, given the recent 1.77 per cent price adjustment implemented by the Canadian Dairy Commission.
Doucette says it usually takes a couple of months for the prices to settle.
“And then you start to see retailers all settle around a very similar price point for milk, because it’s something people pay attention to.”
The study also found that B.C. residents pay less than other parts of the country.
One national store currently sells four litres of two per cent milk for $5.55 in Kelowna, Prince George, and Vancouver; $5.75 in Calgary; $6.08 in London, Ont.; $7.87 in Montreal; and $7.17 in Halifax.
“B.C. has the luxury of having a larger population and a big dairy industry versus some of the other markets in Canada,” Doucette said. “It’s pretty decent.”
The report also said retailers are seeing a shift in the type of milk people consume and that the demand for cow milk and milk alternatives has narrowed by 5.5 per cent since 2023.
“If we continue to see cow milk prices increase, plant-based alternatives might actually be cheaper on a per-litre basis,” Doucette said, adding that prices could drop for Canadians if a national milk system was adopted.
“Canadians could really benefit on whole from a more national milk system and a more competitive milk system, where products are allowed to flow across provincial borders easier than they are today.”
The report is available online.
Global News has reached out to the B.C. Dairy Association.
In an email, the association said the Canadian Dairy Commission, which is an independent crown corporation, makes decisions about the farmgate price of milk — what farmers, coast to coast, get paid for the raw milk they produce.
Information about the CDC, including its 1.77 percent increase in the farmgate rate , which was implemented on May 1, is available online.
“We understand the price of everything in the grocery store is going up right now, and that’s hard on families,” said the B.C. Dairy Association. “We experience that ourselves when shopping to put food on our tables.
“The change in price farmers receive for their product reflects the reality that the price of everything we need to produce milk has risen – from feed to fertilizer.
“Even with recent price increases, a four-litre jug of milk remains one of the best values for money when it comes to how much nutrition is in a glass.”