Restaurant owners frustrated as Canadian dairy prices reach new heights

Cheese lovers, chefs and restaurateurs will be disappointed to learn that the price of Canadian cheese – along with butter, yogurt and ice cream – is going up again.
In a decision announced today, the Canadian Dairy Commission (CDC) is increasing the price of industrial milk, used to make products such as cheese, butter, yogurt and ice cream, by 2.2% effective Feb. 1, 2016. 

"Canada's antiquated supply management system has created a huge disparity between Canada and the rest of the world when it comes to the price of basic dairy products like cheese and butter," says Donna Dooher, President and CEO of Restaurants Canada. "Our industry wants to grow the market for Canadian dairy products, but relentless price increases are having the opposite effect."  

Last year's one-off price reduction of 1.9% was passed on to dairy processors but was not passed along to restaurateurs or consumers. 

The 'cost of production' formula that's used to justify dairy price increases includes capital investments that should result in efficiencies leading to lower prices for consumers. Unfortunately, any savings appear to go to the dairy producer's bottom line.

Restaurants Canada is a growing community of 30,000 foodservice businesses, including restaurants, bars, caterers, institutions and suppliers. We connect our members from coast to coast, through services, research and advocacy for a strong and vibrant restaurant industry. Canada's restaurant industry directly employs 1.2 million Canadians, is the number one source of first jobs, and serves 18 million customers every day.

SOURCE Restaurants Canada