Gordon MacBeath, Chair of Marketing Council, today announced that on February 1 the minimum wholesale price of fluid milk and cream products will increase by 3.087 percent or approximately five (5) cents a litre.
Fluid milk products include homogenized (standard) milk, 2% milk, 1% milk, skim milk and chocolate milk. Fluid cream products include blend, table cream and whipping cream.
Mr. MacBeath said producers will receive approximately 2.95 cents per litre or 59 percent of the increase while processors will see their average margins increase by about 2.05 cents a litre or 41 percent of the increase.
“Although Council decided not to increase the minimum home delivery price of fluid milk products, distributors are expected to adjust their home delivery selling prices to offset increased costs associated with the declining market for this service,” said Mr. MacBeath.
Mr. MacBeath said that in establishing the producer price, Council took into account a formula agreed to by producers, and supported by processors, in the five eastern provinces which are members of an all milk pool.
The processor margin increase is based on a cost of processing formula developed by Marketing Council during 2007 after consultation with processors.
“Prices established by Marketing Council are minimum prices,” said Mr. MacBeath. “Processors and distributors may sell their products above the minimum prices if they wish.” He said that retail store prices are not regulated.
A full schedule of prices will be 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.