Gordon MacBeath, Prince Edward Island Marketing Council chair, today announced that the minimum wholesale and minimum home delivery prices of fluid milk and cream products will increase by one cent a litre on February 1.
Fluid milk products include homogenized (standard) milk, 2 per cent milk, 1 per cent milk, skim milk and chocolate milk. Fluid cream products include blend, table cream and whipping cream.
Producers will receive about 30 per cent of the increase while processors will receive the remaining 70 per cent, said Mr. MacBeath.
Mr. MacBeath said that Marketing Council takes into account producer milk component price changes announced by Dairy Farmers of Prince Edward Island, a cost-of-processing formula developed in the province several years ago, and consultations with processors about other manufacturing costs and economic factors.
“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.” Mr. MacBeath said that retail 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, it has been granted authority under the Act to establish the minimum wholesale and minimum home delivery prices of Class 1 or fluid milk products.