The price of dairy products may rise for the second time since the beginning of the year.
Dairy Farmers has sought permission from the Canadian Dairy Commission (CDC) to impose a new increase due to inflation.
The group says they are farmers face price increases never seen before for the goods and services they need to produce milk. In less than a year, the price of fertilizers has risen by more than 44%, fuel by more than 32%and animal feeds by more than 8%.
Current exceptional circumstances require mid -year adjustments to close this gapadded the group of dairy producers.
The CLC
indicated that it will conduct consultations on this topic from June 13 to 15. A decision is expected to be announced around June 17.According to demand, this price increase will take effect on 1eh september. The milk producer price had already risen six cents per liter, or about 8.4%, on February 1st.
Too much increase?
According to experts, consumers will not be able to bear the burden of further increase. By raising prices to an unsustainable level, producers are threatening to increase food insecurity for Canadians, they pointed out.
Companies may add another increase to this increase. It’s as if the consumer has been hit twicecriticized Gary Sands, of the Canadian Federation of Independent Grocers. The price pressure on Canadians is horrible. The industry does not realize the impact of the increases on consumers.
Dairy Farmers of Canada declined to indicate the amount of the desired increase.
The lack of transparency is problematic. They calculate the price of dairy production in the country to claim a record increase. And there, without warning, they asked for another. They only give taxpayers two weeks to prepare for the consultations, which are not made public.argues Sylvain Charlebois, an economist at Dalhousie University.
In a statement, Dairy Farmers of Canada said on Thursday that the price of milk on the farm was adjusted through a fully open and transparent process. This transparency is one of the many benefits Canadians derive from our supply management system.They argued.
Mr. doubted. Sands that producers will agree to lower prices if the situation returns to normal. If supply issues are resolved in the next few months, will they lower prices? he asked.
Source: Radio-Canada