Search
Better Farming OntarioBetter PorkBetter Farming Prairies

Better Farming Ontario Featured Articles

Better Farming Ontario magazine is published 11 times per year. After each edition is published, we share featured articles online.


Milk price increases, restaurant operators stew. What else is new?

Wednesday, December 3, 2008

© Copyright AgMedia Inc

by BETTER FARMING STAFF

Canadian Restaurant and Foodservices Association spokesman Ron Reaman says he’s disappointed the Commission announced Wednesday that the price increases – nearly seven cents a kilogram for skim milk powder and more than five cents a kilogram for butter – will take effect Feb. 1, 2009.

The increases are the equivalent to a one per cent rise in industrial milk revenue for producers, or $0.74 per hectoliter (one hectoliter equals 100 litres). The increase applies equally to all provinces.

“We’re just really concerned that we are not going to be able to continue to pass through the kind of premium pricing on dairy products and be an effective sales channel for the dairy industry,” says Reaman.

He explains that the country’s foodservice industry is projecting a 2.2 per cent decline in overall sales and growth in 2009 and adds milk consumption has dropped in recent years.

The association also objected to an unscheduled industrial milk (used to make products such as ice cream, cheese and yogurt) price increase of two per cent on Sept. 1.

Tom Kane, president of the Ontario Dairy Council, which represents dairy processors and marketers, calls the Feb. 1 increase routine.

“It was expected,” he says. “I don’t think there’s surprises in it.”

“It happens every year as of Feb. 1.”

While no dairy processor wants the price increase, “it is part of the system,” he says. “We don’t have much say in the matter.”

He says industry figures show consumption of milk products have decreased slightly but are remaining relatively stable, despite the economic climate.

In the Commissions news release, its chair, Randy Williamson, states: “Our data show that Canadian dairy producers’ revenues are lagging behind the increases that we saw in the cost of feed, fuel and fertilizers for most of 2008.”

The new price for butter includes a reduction of two cents per hectolitre in the carrying charges collected by the Commission to pay for butter stocks storage. BF
 

Current Issue

June/July 2025

Better Farming Magazine

Farms.com Breaking News

Ontario farmers get boost for energy upgrades

Friday, July 11, 2025

The governments of Canada and Ontario are investing up to $3 million in the third round of the Agricultural Stewardship Initiative (ASI). This funding will help farmers improve the energy efficiency of their operations and support the long-term sustainability of the agriculture... Read this article online

Swede midge and cabbageworm found in Ontario canola

Thursday, July 10, 2025

As reported on the OMAFA website fieldcropnews.com, Ontario canola crops are at various growth stages, ranging from seedling to full bloom depending on planting time and region. Winter canola is now fully podded, and harvest is expected to begin soon in Essex and other southern... Read this article online

Ontario crops respond to summer heat

Wednesday, July 2, 2025

According to the OMAFA Field Crop News team, Ontario field crops are showing rapid development as summer-like temperatures have dominated late June early July. The warm spell has accelerated growth and helped reduce the heat unit deficit from a cool spring. Corn fields have seen a burst... Read this article online

BF logo

It's farming. And it's better.

 

a Farms.com Company

Subscriptions

Subscriber inquiries, change of address, or USA and international orders, please email: subscriptions@betterfarming.com or call 888-248-4893 x 281.


Article Ideas & Media Releases

Have a story idea or media release? If you want coverage of an ag issue, trend, or company news, please email us.

Follow us on Social Media

 

Sign up to a Farms.com Newsletter

 

DisclaimerPrivacy Policy2025 ©AgMedia Inc. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
Back To Top