CRFA's Federal Lobbyists
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Joyce Reynolds Executive Vice President, Government Affairs T: 1-800-387-5649 ext. 4219. E: jreynolds@crfa.ca |
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Justin Taylor Vice President, Labour and Supply T: 1-800-387-5649 ext. 4214 E: jtaylor@crfa.ca |
Dairy prices to rise 1% on Feb. 1, 2009
(Dec. 3/08) Despite calls from CRFA to lower dairy prices to more reasonable levels, the Canadian Dairy Commission has announced yet another increase in the price of industrial milk. The price will rise by 1% on Feb. 1, 2009, following two price hikes in 2008.
At a November consultation meeting with the CDC, chain and independent restaurant operators joined CRFA to make the case for lower prices. Many told the CDC commissioners that dairy is pricing itself off the menu:
- Dairy prices have jumped 57% in the last 14 years - nearly twice the rate of inflation.
- The cost to produce industrial milk, used to make cheese and other dairy products, has increased by just 6 percent over the same time period.
- Pizzeria owners are forced to pay up to 30% more for their cheese than frozen pizza makers do.
- Cheese makes up about 40% of the cost of a fresh pizza.
- For every dollar spent at a restaurant, an average of just 4 cents is the pre-tax profit.
- To control their costs, restaurant owners are using fewer dairy products and introducing menu items that use less or no cheese.
- Cheese is the only menu input that only goes up in price, and never comes down.
Restaurant owner Diana Coutu from Diana's Gourmet Pizzeria in Winnipeg spoke about the frustration among pizzeria owners and urged the CDC to look to the future:
| “While other costs have increased due to actual shortages, i.e. wheat flour and rice flour, and some costs have increased due to rising fuel costs, those costs have come down since production has increased and other commodities have had fluctuating prices to reflect the gas prices. The cheese/dairy stands alone in their ever increasing costs.
Do not think that pizzeria owners do not notice it’s the only item on their inventory list that only increases in price. It’s time to repair the damaged relationship between the dairy industry and the average pizzeria owner, it’s time to help him grow his business, while also helping to grow consumption of 100% dairy cheeses." (Read the full text of Diana's remarks) |
To drive home to the CDC the impact of exorbitant dairy prices, CRFA screened a video of comments from restaurant owners in various parts of Canada. To view the video, click below: