he Canadian Dairy Commission is delaying a planned increase to the farmgate price of milk by three months as the food industry grapples with pressure to stabilize food prices.

On Wednesday, the dairy commission said an increase of 1.77 per cent will go into effect on May 1, 2024, instead of February 1, when it would normally take place. The increase translates to just over a cent per litre.

Inflation is affecting Canadians and the entire dairy supply chain, from farmgate to consumers害羞草研究所� plates, said CDC chair Jennifer Hayes in a statement.

害羞草研究所淭he CDC always strives to balance consumer impacts with sustainability of the dairy industry.害羞草研究所�

The commission, a Crown corporation, reviews the price dairy farmers are paid for their milk every fall. Price adjustments normally come into effect the following February.

In October, the commission said that according to its pricing formula, the price of milk at the farm level could go up by 1.77 per cent in February.

Ahead of the annual price announcement, the Canadian Federation of Independent Grocers called for a pause in price increases to farmgate milk, saying the grocery industry is in an exceptional situation this year.

The CFIG害羞草研究所檚 call triggered a mechanism that set aside the results of the pricing formula in favour of setting a price based on consultationswith stakeholders.

About a week later, the Dairy Farmers of Canada also recommended delaying the price hike.

Gary Sands, CFIG害羞草研究所檚 senior vice-president, said he applauds the decision.

害羞草研究所淭hey害羞草研究所檙e hitting the pause button, and we think that害羞草研究所檚 appropriate,害羞草研究所� he said.

害羞草研究所淩ight now, we害羞草研究所檙e all trying to achieve price stability 害羞草研究所� I think they害羞草研究所檝e taken a very prudent course of action.害羞草研究所�

Sands cautioned though that a pause in farmgate milk prices doesn害羞草研究所檛 mean retail prices for dairy products couldn害羞草研究所檛 still rise in the meantime. Farmgate milk, which is used to make many products including milk, cheese and yogurt, is just one of the many different factors that goes into the prices charged to retailers by dairy processors, he said.

Canada害羞草研究所檚 food supply chain is under pressure from the federal government to keep prices steady after high inflation and a rapid rise in interest rates have increasingly squeezed consumers害羞草研究所� budgets.

Like consumers, dairy farmers have also been feeling the pressures of inflation, the CDC said in a statement: 害羞草研究所淒espite stabilizing feed, fuel and fertilizer costs, producer gains were offset by higher interest rates.害羞草研究所�

Sands said as May draws closer, the commission should reassess whether a price increase is appropriate. If it isn害羞草研究所檛, he said he will push to further delay the hike.

With this announcement by the dairy commission, the other supply-managed sectors 害羞草研究所� chicken and eggs 害羞草研究所� will likely also be under pressure to pause price increases, said Sands.

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