Dairy Farmers of Canada (DFC) has made a request to the Canadian Dairy Commission (CDC) for an advance price adjustment in the farmgate price of milk.
"In terms of dairy farmers, we're feeling the same inflation pressures that all other Canadians are," said DFC Vice President David Wiens. "We're seeing the kind of inflation here that we haven't seen in almost a generation. What we've seen here over the past, especially year, but it seems to actually have accelerated it, is that there's more supply chain disruptions, which already began with the pandemic. We've had the extreme weather events both in Manitoba and other parts of the country...We're seeing price increases for the goods and services that we need to produce milk for. As an example, costs have increased for fertilizer 44% since last year and fuel has gone up 32% and animal feed has gone up by 8%. Those are pretty significant cost factors on a dairy farm."
Normally the CDC adjusts dairy farmgate prices once a year to reflect changes in the production cost.
A previous adjustment of 8.4% was implemented in February.