Canadian Dairy Commission
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No change in support prices for skim milk powder and butter

OTTAWA, December 4, 2009 – The Canadian Dairy Commission (CDC) announced today its decision to not change support prices for butter and skim milk powder. As of February 1, 2010 the support price for skim milk powder will therefore remain at $6.1783 per kg and the support price for butter will remain at $7.1024 per kg.

Support prices are the prices at which the CDC buys and sells butter and skim milk powder to balance seasonal supply and demand changes on the domestic market. Support prices are also used as references by provincial boards to price milk sold to processors who manufacture dairy products such as butter, skim milk powder, cheese, yogurt and ice cream. The final price to consumers will be influenced by many other factors such as manufacturing, transportation, distribution and packaging costs throughout the supply chain.

"Input prices have decreased slightly from their peak levels in 2008 which now allows dairy producers to cover their cost of production. As a result, the support prices for butter and skim milk powder have been left unchanged." said Randy Williamson, Chairman.

Despite the economic downturn, the demand for dairy products has remained stable in Canada. Over the course of the 2008-2009 dairy year, Canadian requirements were 50.04 million hectolitres, up 0.3% from the previous year. Leaving the support prices unchanged will contribute towards maintaining or improving this trend.

The Canadian Dairy Commission, a federal Crown corporation created in 1966, is a key facilitator within the Canadian dairy sector. The CDC helps design, implement, and administer policies and programs to address dairy producer and processor needs. It is mandated to provide efficient dairy 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 quality dairy products.

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For more information, please contact:

Carole Cyr
Communications Services
Tel: 613-792-2041
Email: carole.cyr@cdc-ccl.gc.ca

Web site: www.cdc-ccl.gc.ca