At the request of Canada's dairy farmers, the Canadian Dairy Commission has approved a farm gate price increase on September 1.
Canadian food suppliers come from ;issue new advisories to grocery retailers notifying them of upcoming price increases.
The letters signal that more price increases will hit grocery stores this fall.
In some cases, the higher prices are due to the Canadian Dairy Commission's approval of a second milk price increase this year. This increase predicts that on September 1, farm gate milk prices will increase by approximately two cents per litre, or 2.5%.
In addition, dairy processing companies are also reporting their own increases. Lactalis Canada, for example, indicates in a letter to its customers that it must implement an average increase of 5% in September, a rate which it says takes into account, among other things, significant inflationary costs.
Arla Foods Canada issued a similar notice, saying price increases for its products coming in September will reflect rising dairy ingredient costs and inflationary impacts on freight and shipping. packaging.
The milk and cheese price increases demonstrate how increases in regulated dairy prices are being compounded by additional price hikes signified by companies, according to Gary Sands, senior vice-president of public policy for the Canadian Federation of independent grocers.
“The timing of increases almost seems to be on top of regulated increases,” he said. “The net effect is to further exacerbate the problem and concerns about affordability. »
Affordability issues are particularly acute in rural and remote communities where surcharges for transportation and fuel costs are higher. “Rising prices for these essentials are of particular concern in these communities,” said Gary Sands.
The price of food purchased from stores rose 9.7% in the month last May compared to a year earlier, as the cost of almost everything in a grocery cart increased, according to what Statistics Canada reported last month.