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Milk, cheese and butter prices could soar in Canada next year

Click to play video: 'Price of dairy products expected to soar next year' Price of dairy products expected to soar next year
WATCH: The cost of living is surging across all consumer categories, from the price of gas to meet products. Now Canadians can expect to see milk products added to the price surge early in the new year. Alexa MacLean has the details – Nov 1, 2021

The Canadian Dairy Commission is recommending an 8.4 per cent increase in farm gate milk prices, a large hike that is expected to raise the cost of dairy products on store shelves in the new year.

The federal Crown corporation says the price increase is expected to be approved by provincial authorities next month and take effect Feb. 1.

The commission says the higher price processors will pay will help offset increased production costs for farmers due to the COVID-19 pandemic.

It says feed, energy and fertilizer costs have all been particularly impacted, causing farmer revenues to fall below the cost of production.

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Sylvain Charlebois, director of the Agri-Food Analytics Lab at Dalhousie University, says the price hike is nearly double the previous record of 4.52 per cent set in 2017.

He says the retail price of milk in grocery stores could increase as much as 10 per cent while prices for dairy products like butter, cheese and yogurt could soar as much as 15 per cent.

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Meanwhile, the dairy commission says its also recognizes a five per cent increase in milk processing costs such as packaging, labour and transportation.

It also says it’s raising the support price for butter used in its storage programs to manage supply and demand by 12.4 per cent.

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