(Jan. 11/17) The Canadian Dairy Commission (CDC) is listening to us. After we recommended a price freeze for 2017, the CDC confirmed it will not increase support prices for butter and skim milk powder this February. It also announced a new pricing formula to stimulate demand for protein and reduce surpluses of non-fat solids, to be rolled out next month.
We want a foodservice dairy strategy
Restaurants Canada also pushed for targeted savings to our sector and a foodservice dairy strategy at the annual CDC consultation in late 2016. This strategy would explore new possibilities to grow dairy through special milk classes. For instance, the 3(d) pizza cheese model could be expanded to other cheeses, products (e.g. butter) and applications.
Why constant price increases don’t help anyone
We also shared the industry’s anger and frustration with two increases in industrial milk prices in one year.
The unexpected hike in support prices in September 2016 followed a tumultuous period where the dairy sector struggled to balance production with demand under the supply management system, causing producer revenues to fall. We argued that constantly raising prices does not solve the imbalance between popular high-fat and surplus low-fat ingredients. The high cost is forcing restaurants to push dairy off the menu.