Thursday, January 15, 2015

Skim milk price declines

For the first time in a generation, the Canadian Dairy Commission is reducing its support price for skim milk powder.

Most provincial marketing boards are expected to therefore cut the price of milk used to make cheeses, yogourts and skim milk powder by 1.8 per cent or $1.49 per hectolitre.

The commission is reducing the support price, effective March 1, for skim milk powder from $6,4754 per kilogram to $6.3109.

There will be no change in the support price for butter, in the processing margin for dairies and in storage fees.

The commission said production costs have declined, promping the support price reduction.

It said the cost of feed, milk transportation, fuel and interest payments have all declined.


Interest payments in Ontario are bound to be coming down because farmers have virtually no quota available to buy, so they can devote all of their profits to reducing debt loads.