Farmgate milk price to decrease by less than 1% next year, CDC says
The farmgate price of milk will go down by 0.0237% in 2025, the Canadian Dairy Commission said Friday (Nov. 1).
That translates to less than 1% per litre of milk sold to processors.
The CDC credited the adjustment to on-farm productivity gains and reductions in some input costs, such as feed.
"Despite a continued inflationary environment, producer efficiencies and productivity gains have contributed to help balance on-farm costs this year, resulting in a decrease in the cost of production. The National Pricing Formula combined with our consultation process have successfully captured this reduction. We thank our stakeholders for their continued participation and support in our pricing consultation process,” said Jennifer Hayes, chair of the CDC, in a release.
A change in the price paid to farmers for their milk does not necessarily translate to a similar retail price change, the CDC said.
The new farmgate milk prices will take effect on Feb. 1, once they are approved by provincial authorities later this year.
The decision is the result of the National Pricing Formula which considers dairy farmers’ costs of production as well as the consumer price index, and follows a review and consultations with stakeholders, including: Dairy Farmers of Canada, Dairy Processors Association of Canada, Canadian Federation of Independent Grocers, Restaurants Canada, and Retail Council of Canada.
