Despite consultations with industry and in-depth discussion with Restaurants Canada, the Canadian Dairy Commission (CDC) is raising the butter support price from $8.0062 per kg to $8.3901 per kg on Sept. 1.
The CDC expects this support price adjustment to increase overall prices for dairy products associated with butterfat and raw milk by 4.1 per cent.
The adjustment acknowledges the 5.1 per cent rise in the cost of producing milk in Canada in the last year. This increase in costs is mostly due to higher prices for fuel and feed, as well as higher interest rates.
As a result of the early increase planned for September, the CDC has confirmed that there will be no further adjustment to the butter support price in February 2019, following its annual review of support prices for butter and skim milk powder.
The CDC has also committed to work with Restaurants Canada on the development of a Foodservice Dairy Strategy, which will include the possibility of building on the success of Class 3(d) to further develop the market for dairy products.
Restaurants Canada will continue to engage with members in the development of a Foodservice Dairy Strategy that will support the market for dairy products in the foodservice and restaurant sectors.
If you have any questions or concerns, you can send them to David Lefebvre, Restaurants Canada Vice President, Federal and Quebec, at DLefebvre@restaurantscanada.org.