The wholesale and home delivery prices for drinking milk products that include homogenized milk, partly skimmed 2 percent and 1 percent milk and skim milk will increase on February 1 by four cents a litre. The announcement was made today by Ken MacLellan, Chair of the Prince Edward Island Marketing Council.
"This is the first price increase in two years and only the second in four years," said Mr. MacLellan.
One cent of the increase represents an increase to producers, while the remainder of the price change represents an increase in the margin allowed for fluid milk processors.
The producer price increase is based on a national cost of production formula.
The increase in the processing margin was based on a cost study of the fluid processing sector carried out in 1999.
The full schedule of prices will be published in this week's Royal Gazette. Retail prices for milk may vary from store to store as the Council does not establish the price at the retail level.