FOR IMMEDIATE RELEASE
January 31, 2011
TORONTO -- The Canadian Dairy Commission (CDC) will increase the price of industrial milk used to make cheese, yogurt, butter and ice cream by 1.5% on Feb. 1, despite its own calculations showing stable production costs. This increase will drive up operating costs for restaurants that use dairy products in their menu items – especially those that purchase mozzarella cheese for fresh pizza.
“When restaurant owners buy cheese, they are forced under the supply management system to pay prices that are 30 per cent higher than frozen pizza makers pay for the exact same product. This latest price hike from the CDC will make it even harder for our members to compete,” says Garth Whyte, President and CEO of the Canadian Restaurant and Foodservices Association (CRFA).
Adding to the unlevel playing field, frozen pizza is sold tax-free but consumers are charged up to 13% tax on fresh pizza because of the GST/HST.
“Between dairy pricing and sales taxes, the government has stacked the deck against restaurants, and it’s making pizza night even more expensive for Canadian families,” says Whyte.
Since 1994, the CDC has increased the price of industrial milk by almost 60%, but the cost of milk production has grown by only 6% thanks to innovation and efficiencies.
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