Ottawa, July 7 - Dairy Farmers of Canada asked the Canadian Dairy Commission last week to implement an immediate increase of 3.5 cents per litre for milk sold from farms. The request was reiterated during consultations held by the Commission on skyrocketing cost increases on dairy farms.
"Dairy farmers are being squeezed by high costs for the most important inputs on their farms," said Jacques Laforge, President of Dairy Farmers of Canada. "Our data for October 2007 to August 2008 shows that fuel prices will have increased by more than 40%, feed will have risen almost 20% and fertilizer and herbicides costs will have climbed 46%. These are drastic increases for any business. Many farmers across Canada need this increase to stay solvent."
Dairy farmers urged the Commission to take action as soon as possible given the significance of the increases. There is a long lag between the formula used by the Commission to calculate the costs of producing milk on farms and their ability to reflect the costs of the current situation via a price increase. By the time the formula catches up, the increased costs will have gone up even more.
"We think that under the current circumstances, the Commission should immediately act to offset these cost increases. An interim increase would alleviate cost pressures facing farmers sooner and avoid a drastic increase in the winter, which could disrupt the ongoing stability of our markets," continued Mr. Laforge.
Dairy farmers remain committed to providing the highest quality products possible. Despite the urgency being felt on farms, the supply of milk and dairy prices have been stable and consumers will continue to find a wide selection of nutritious dairy products on supermarket shelves.