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Dairy Prices News Headlines
CRFA’s position on dairy prices
Pass cost savings on to consumers. Since 1994, the cost of production for dairy products has fallen by 3.5%. By rewarding themselves with generous price increases every year, Canada's dairy industry ignores its obligation to pass these savings on to consumers.
Treat all pizza makers the same. Frozen pizza makers have access to Class 5a dairy permits, which allows them to buy mozzarella cheese at a substantial discount. Fresh pizza makers are denied access to the same permits and are forced to pay, on average, one-third more than frozen pizza makers do for mozzarella cheese. Fair pricing in the dairy industry is long overdue. Giving fresh pizza makers access to Class 5a permits would be a welcome step toward ending discrimination against Canadian foodservice operators.
Bring accountability to the Canadian Dairy Commission. At present, the CDC is a three-person tribunal of one dairy producer, one processor, and the former president of Dairy Farmers of Canada. The CDC continues to operate in violation of the CDC Act, which requires an oversight committee of consumer and industry stakeholders to review changes to the cost of production. The committee has not existed since 1994 - despite repeated recommendations from the Auditor General - and must be appointed immediately to ensure accountability in all future pricing decisions. As the charts below illustrate, the CDC's price hikes have resulted in Canadian consumers now paying among the highest prices in the world for dairy products.
Freeze Canadian dairy prices: Recent evidence at the Standing Committee on Agriculture shows that some Canadian dairy exporters are producing milk for $25-27/hl and shipping profitably into the United States at $44/hl. Canadian government evidence at the WTO shows that an average return of $29/hl would be economically feasible over the long term for the majority of dairy producers. And yet, the domestic price of industrial milk has skyrocketed over the last 10 years to more than $67/hl.
It's time to freeze dairy prices until a proper cost-price relationship is established.
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