Gordon MacBeath, Prince Edward Island Marketing Council chair, today announced that the minimum wholesale price of fluid milk and cream products will increase between four (4) and five (5) cents a litre on February 1. Mr. MacBeath said that Council did not change the minimum home delivery price of fluid milk products.
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.
“The increase will average about 4.4 cents a litre for fluid milk products and 3.8 cents a litre for fluid cream products. Producers will receive about 70 percent of the fluid milk product increase and 65 percent of the fluid cream product increase,” said Mr. MacBeath.
Mr. MacBeath said that in establishing the Class 1 producer price and minimum wholesale prices, Marketing Council considered a price formula adopted by five eastern Canadian provinces several years ago, a processor cost formula developed in the province two years ago, and consultations with producers and 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.” 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 producer price for Class 1 milk, and minimum wholesale and home delivery prices.