Milk prices in Canada are expected to go up again in the new year.
The Canadian Dairy Commission says it has approved an increase in farm gate milk prices of about 2.2 per cent, or just under two cents per litre, effective Feb. 1, 2023.
The Crown corporation, which oversees Canada's dairy supply management system, says the increase is based on the rising cost of production.
It comes after the commission approved two price hikes in 2022: A 2.5 per cent increase, or roughly two cents per litre, in September and an 8.4 per cent increase, or six cents per litre, in February.
Altogether, the total 12-month farm gate milk price increases amount to roughly 10 cents per litre, or 13.1 per cent.
Matthew Gaudreau, the dairy commission's director of policy and economics, says the price of milk components is one factor that goes into the retail price of milk and that other factors along the supply chain could affect the final product price of dairy products.
He says the new farm milk prices will become official once approved by provincial authorities.