Manitoba Raises Fluid Milk Prices

WINNIPEG - Mar 28/01 - STAT -- Increasing production costs has prompted the Manitoba Milk Prices Review Commission to boost the maximum price for fluid milk effective April 1.

Maximum wholesale and retail milk prices for one-litre containers of homogenized and 2% milk will increase CDN two cents per litre. The price for 1% and skim milk in one-litre containers will go up by one cent. Prices paid to Manitoba dairy producers will rise by 1.06 cents per litre in response to an increase in the costs of producing fluid milk.

"These new prices reflect increases in the dairy producer’s cost of production, due mainly to higher feed grain costs," said Manitoba Milk Prices Review Commission Chair Daryl Kraft. "The commission adjusts prices as necessary in order to maintain a reasonable profit margin for producers and at the same time make sure the public is offered fair prices."

The maximum prices, which primarily affect Winnipeg and Brandon, will be $1.33 for homogenized milk, $1.27 for two per cent milk, $1.21 for one per cent milk and $1.17 for skim milk. Maximum prices for other communities will be incrementally higher due to transportation costs.

As part of a move towards fewer regulations, the commission previously removed the maximum wholesale and retail price for most fluid milk products.

"The maximum price set by the commission has had limited influence on retail sales of milk as most retailers sell milk below the maximum as a competitive strategy," said Kraft. "So while there is no minimum retail price for milk sales, the setting of maximum prices for one litre containers, along with the Milk Prices Review Commission’s monitoring of retail prices, means consumers can continue to purchase milk at reasonable prices."

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