Kenneth MacLellan, Chair of Prince Edward Island Marketing Council, today announced that the minimum wholesale and minimum home delivery price of fluid (table) milk and cream products will increase by 4.0 cents a litre on March 1, 2004.
Products affected by the increase include homogenized milk, 2% milk, 1% milk, skim milk, blend, table cream, whipping cream and chocolate milk.
"Producers will receive 3.25 cents per litre of the increase while processors will see their average margins increase by 0.75 cents a litre," said Mr. MacLellan.
Mr. MacLellan said in establishing the producer price, the Marketing Council took into account producer cost of production data for 2002, indexed to the end of September 30, 2003. "Market factors since that date have negatively impacted on producer incomes," he said. "The processor margin increase is based on processing, packaging and delivery costs reported to Marketing Council by processors during 2002 compared to 2001."
Prices established by Marketing Council are minimum prices. 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 will be published in the Royal Gazette.
The 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 for minimum wholesale and home delivery prices.