Canadian Dairy Commission
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Adjustement to the Support Prices of Butter and Skim Milk Powder on February 1, 2016

OTTAWA, December 16, 2015 – The Canadian Dairy Commission (CDC) announced today an increase in the support price of butter and a reduction in the support price of skim milk powder that will be effective February 1, 2016. The support price of butter will increase from $7.4046 to $7.7815. The support price of skim milk powder will be reduced from $6.3109 to $4.4176/kg.

“These adjustments in support prices acknowledge the 3.11% rise in the cost of producing milk and are adapted to changing market conditions” says Alistair Johnston, Chairman of the CDC.

The CDC expects these adjustments in support prices to add up to an overall revenue increase for dairy producers of approximately 2.2% for milk processed into yogurt, ice cream, cheese, and butter. Prices received by producers for fluid milk are determined through a process that is separate from this announcement. Overall increases to producers will depend on the pricing decisions made by provincial authorities.

The impact of these adjustments at the retail level will be influenced by many factors such as manufacturing, transportation, distribution and packaging costs throughout the supply chain.

The margin received by processors for butter and skim milk powder purchased by the CDC under the Domestic Seasonality Programs will remain unchanged. Carrying charges collected by the CDC to pay for the storage of normal butter stocks will also remain unchanged.

Support prices are used by the CDC when buying and selling butter and skim milk powder under its Domestic Seasonality Programs. These programs balance seasonal changes in demand on the domestic market.

The Canadian Dairy Commission, a Crown corporation created in 1966, is a key facilitator within the Canadian dairy sector. It is mandated to provide efficient milk producers with the opportunity to get a fair return on their labour and investment, and to ensure that Canadian consumers are provided with adequate supplies of dairy products. The CDC helps design, implement, and administer policies and programs to address
stakeholders’ needs.

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For more information, please contact:

Chantal Paul, Chief
Communications and Strategic planning
Tel.: 613-790-0929
Email: chantal.paul@cdc-ccl.gc.ca