CRFA's Federal Lobbyists

	Joyce Reynolds Executive Vice President, Government Affairs T: 1-800-387-5649 ext. 4219. E: jreynolds@crfa.ca

	Justin Taylor Vice President, Labour and Supply T: 1-800-387-5649 ext. 4214 E: jtaylor@crfa.ca

Not milked: Restaurants avoid $80 million in extra dairy costs

(Jul. 18/11) The Canadian Dairy Commission (CDC) rejected milk producers’ request for a price increase on industrial milk this month. The request was made using outdated cost of production data which showed a large jump in milk production costs, when more recent figures indicate only a modest increase.

Understanding the price of milk
Under Canada’s supply management system, milk prices are set at different levels depending on use:

Fluid milk (i.e. milk consumers drink) – price set by provincial pricing authorities
Industrial milk (i.e. milk used to make cheese, yogurt and other dairy products) – price set by the CDC

In May, Ontario dairy producers pushed through a price increase of 3.2 per cent for fluid milk using 2009 cost of production numbers indexed to 2011 prices.

CRFA action
CRFA recently met with the CDC to express industry concerns about the impact of inflated dairy prices on consumer demand and affordability. If granted, producers’ requested price increase on industrial milk would have cost the industry over $80 million in additional dairy costs.