Dairy: Wanted: a more flexible pricing system for industrial milk

Dairy officials are looking for ways to reconcile support prices with anticipated world trade proposals, while still taking account of the production costs of the most efficient operators


Dairy Farmers of Ontario (DFO) agrees with its federal counterpart and the Canadian Dairy Commission (CDC) that the way industrial milk is priced must change.

Each December, the CDC announces the new butter and skim milk powder support prices, which are then implemented on Feb. 1. To set prices, the CDC consults with farmers, processors, retailers, restaurateurs and the Consumers’ Association of Canada. Industrial milk returns for farmers are based on those support prices and are set by provincial milk boards.

Better Farming - April 2008