Your wallet is poised to take another hit at the grocery store.
The Canadian Dairy Commission is recommending increasing the cost of farm gate milk prices.
That means we could be paying significantly more for milk, butter, and yogurt in the New Year.
A farm gate milk price is the price farmers receive from processors for the milk they produce.
If approved, the cost of milk used to make dairy products for the retail and restaurant sectors will go up by about 8 per cent in February.
Dairy farmers will get more than 12% for butter.
The commission says the move is necessary due to increased production costs from the pandemic.
“The increase in producers’ revenues will partially offset increased production costs due to the COVID-19 pandemic which caused revenues to remain below the cost of production,” the commission says. “Feed, energy, and fertilizer costs have been particularly impacted.”
The spike in prices will likely be passed on to Canadians once approved by provincial authorities in early December.
This marks the highest increase in more than 50 years.
