Increase in the price of milk at the farm, between disappointment and relief

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Rise in the price of milk at the farm, between disappointment and relief

If dairy producers welcome the bonus, a little further down the chain, this increase hurts.

Since February 1, the price of milk at the farm has increased. Dairy manufacturers now have to pay 2.2% more for their raw material. This decision by the Canadian Dairy Commission still has the effect of giving some breathing space to dairy producers already hurt by inflation.

Exploit a farm like Yves Lamy's in Yamachiche costs more and more: transporting milk, diesel to operate the machinery and feeding the cows, everything has increased in the last few months.

We can't absorb all that extra expense there. We have to readjust the price, otherwise we will go through it, explains the one who is also vice-president of the Mauricie Milk Producers.

Yves Lamy has owned the Jéméric farm in Yamachiche since 1992.

I am happy with the increase I have […]. Of course, we always want to have more in life. I am also aware that consumers have difficulty keeping up. I want milk to remain a competitive product in the market, adds the producer.

Recent farm milk price increases

Period

Rise

February 2023

2.2%

September 2022

2, 5%

February 2022

8.4%

Source: Canadian Dairy Commission/Radio-Canada

It's still good business, you have to adapt and always find more economical ways of producing, he says.

For a two-litre 2% milk, sold at $3.95, the producer recovered, until very recently, $2.07, or 52% of the selling price. According to the Producteurs de lait du Québec, thanks to the latest increase, the producer will get 4¢ more.

For Yves Lamy and his farm, the increase will allow him to increase his annual turnover by $11,000. With this money, he has no major projects in mind. He will be able to afford to increase the wages of his employees, but no more.

But if the dairy producers welcome the bonus, a little further in the chain, this increase hurts . Dairy manufacturers, from small dairies to large industrialists, have to pay more for the same amount of milk they will put on the market.

It's automatic, for us it's an increase in the cost of our raw material. We are obliged by regulation to respect this increase, notes Charles Langlois, President and CEO of the Council of Dairy Industrialists of Quebec.

“I think that in the inflationary environment we have right now, I think a 2.2% increase is reasonable. »

— Charles Langlois, President and CEO of the Conseil des Industriels laitiers du Québec

Dairy products like cheese will inevitably cost more in stores. The Victoria cheese dairy in Centre-du-Québec is seeing the effects.

Cheese is increasingly becoming an expensive commodity, says Marc-André Gosselin, president and director General of Fromagerie Victoria.

The first branch of Fromagerie Victoria, in Victoriaville.

With the increases in the price of oil, packaging and wages, when you put all of this together, it's clear that there is an impact on the price level.

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