Milking The Canadian Consumer
CANADA - We are approaching the time of the year when the Canadian Dairy Commission announces whether or not there will be an increase in the price of milk. In previous years, increases were usually announced, so don't be surprised if another comes this year.
12 October 2007
1 minute read
In 2006, Canada was the world record holder for butter and skim milk prices. A kilogram of butter cost $6.57 in Canada, three times the world average of $2.17; a kilogram of skim milk powder cost $5.24 in Canada versus $2.07 on the world market (prices in US$).
The average price of milk paid to producers in Canada was $52.97 per 100 kg in 2005. Second highest after Canada was the average price of $34.34 paid to producers in the European Union. New Zealand's prices were $24.88 (prices in US$).
Even though dairy prices are so high in Canada, they keep going up. Milk prices have risen 53% since 1994, almost twice the rate of inflation. Meanwhile, the cost of production has fallen 3.8% over the same period.
Source: CanadianBusiness.com
