11/03/2021
So some of you may have heard that dairy farmers in Canada are getting paid more for their milk come February.
I always have mixed feelings about pay increase announcements. One one hand it’s very welcome and much needed, but on the other hand there is always misinformation or a media twist that goes along with it.
Here are a few things that I need you to understand…..
Firstly, dairy farm families are consumers too. We buy groceries at the store just like you so we are affected by the price of food as well. Most of us buy our cheese, yogurt, ice-cream and milk from the dairy isle so we have a good understanding from both sides.
Secondly, dairy farmers don’t set the price of dairy. It’s reviewed each year by the Canadian Dairy Commission (CDC). They look into things like the Consumer Price Index and Cost of Production.
Thirdly, the price increase isn’t to increase our profits. It’s to offset some of the increase in production costs that we have been absorbing for months. Other commodities also have had price increases but they don’t make the headlines because they are government regulated to the degree dairy is.
Retail prices have gone up in many cases while the farm gate price paid to farmers has remained the same. Any increases to the consumer will be determined if retailers and others in the supply chain decide to increase their prices further.
Our farm expenses have increased greatly just like other businesses across Canada. The increase is due to many reasons such as weather, labour and pandemic challenges. Not to mention a huge increase in seed costs (up 20%) fuel costs (up 30%) and feed expenses (up 27%).
Thanks to supply management the increase in dairy products has been much more gradual when compared to other foods. In fact the CPI (consumer price index) for dairy has only risen by 7.7% in the last 5 years when compared to the CPI increase of 9.5% for foods in general.
Dairy farming is still a lifestyle for many but it’s also a business. Without recouping some of our expenses and keeping up with other industries the family farm could become a thing of the past. We are proud to produce high quality milk from well cared for cows. Thanks for the continued support ❤️🇨🇦🥛
To hear a great explanation from the president of the Dairy Farmers of Canada please click the link….
https://fb.watch/92pltnp9ph/