The minimum home delivery price of fluid milk and cream products will increase by eight cents a litre and minimum wholesale prices will increase six cents a litre as of February 1. The announcement was made today by Axel Irving, Chair of the Prince Edward Island Marketing Council.
Fluid milk products include homogenized (standard) milk, 2% milk, 1% milk, skim milk and flavoured milk. Fluid cream products include blend, table cream and whipping cream.
“Producers will receive approximately 3.2 cents per litre of the increase while processors will see their average margins increase by slightly more than 2.8 cents a litre,” said Mr. Irving. “In establishing the producer price, Council took into account a fluid milk pricing formula adopted by the five eastern provinces signatory to an All Milk Pooling Agreement.”
The processor margin increase is based on processing, packaging and delivery cost increases incurred by processors during 2005 compared to 2004. Mr. Irving said that increased delivery costs contributed to Council’s decision to raise home delivery prices by two cents a litre more than wholesale prices.
“Prices established by Marketing Council are minimum prices,” said Mr. Irving. “Processors and distributors may sell their products above the minimum prices if they wish”. Retail (store) prices are not regulated.
A full schedule of prices is published in the Royal Gazette.
Marketing Council is a statutory body established under the Natural Products Marketing Act. Among other things, Marketing Council has been granted authority under the act to establish the producer price for Class 1 milk, and minimum wholesale and home delivery prices.