Price for dairy products rising for third time in a year

Dairy prices rising 2 per cent Another price hike coming for essentials like milk and butter. CTV's Jeremie Charron explains why.

It will soon cost you more to buy milk at the grocery store or the corner store, after a 2.2 per cent increase in the farm gate price charged by dairy farmers.

"We're not done. We are expecting the dairy section to become a little more expensive unfortunately," said Sylvain Charlebois, an Agri-food analytics professor.

This is the third price hike in a year for the dairy industry, and it is leaving consumers frustrated.

"Yeah, dairy products are high, cheese is really high, the yogurts I like have gone up quite a bit," one shopper told CTV News.

"I go through a lot of milk, that's where a lot of my money gets spent. It’s gone up quite a bit," said another shopper.

The industry operates on a supply management system. The Canadian Dairy Commission overseas, approves, and sets the price farmers can charge for their dairy products. In November, the commission approved an increase of 2.2 per cent for the price farmer's charge, starting on Feb. 1.

This latest increase comes following two others in 2022 – last February prices rose 8.4 per cent, and another 2.5 per cent in September.

"I met with the Canadian Dairy Commission in Ottawa and ask where is the data that justifies a third increase and nothing was disclosed," Charlebois said.

Meanwhile, the price egg farmers charge for their products are actually set to decrease in February.

However, some consumers are sceptical they will see any savings at the grocery store.

"You know, record profits for grocery chains," said one shopper.