P.E.I. dairy farmers support ask for milk price hike

Prince Edward Island dairy farmers agree milk prices need to go up another two to three cents per litre to help them cover increasing on-farm costs as inflationrisesquickly.

Last month the Dairy Farmers of Canada lobby group asked for a rare mid-year milk price hike to keep up with the high prices of goods they need to produce milk.

That's in addition to a price hike of six cents per litre granted by the Canadian Dairy Commission in February, after its usual annual price review.

"You try to name a product that hasn't gone up in price, and most of them have gone up more than six centsa litre,"Gordon MacBeath, chairof Dairy Farmers of Prince Edward Island told CBC Tuesday.

MacBeath saidfarmers expect a two to three cent a litre increase for thesecondprice hike.

"You compare that to other products in the grocery store. We think that the dairy represents tremendous value for the dollar," he said, addinghe hopes consumers understand the need for higherprices.

"Our costs have gone up for every single input, whether it be soybeans to feed the cowsor barley or any of our import costs, they've increased significantly."

'It adds up'

Industry observers have spoken against the hike, saying the request will likely mean grocers will take the opportunity to hike milk prices even more than the six cents per litre.

Increasing food prices are already affecting residents of P.E.I., andMike MacDonaldat The Upper Room Food Bank says a hike in the price of milk wouldbe an added burden. Food bank use is up almost 20 per cent on P.E.I. over last year.

"It will certainly affect P.E.I. families," MacDonaldtold CBC News: Compass host Louise Martin."Prices ofevery product are increasing. It's one of many products itdoesn't seem like a lot but it adds up."

It would be difficult for many families to see a staple like milk cost more, he said.

The food bank will continue to supplyevery client at least one litre of milk per visit, he said, because it is recognized asimportant.

"It's almost one of nature's perfect foods, the health benefits of it," MacDonald said.

MacDonald notedthe Dairy Farmers of P.E.I. has been very generous with donations to Island food banks over the last few years.

The Canadian Dairy Commission is scheduled to make an announcement on the decision on the price hike in mid-June. If approved, MacBeathsaidthere will be a 90-day grace period for processors and retailers to adapt and put any increasein effect bySeptember.

"We still consider our industry to be very, very fortunate. It's stable, but it's certainly it's certainly tougher for dairy farmers out there than it was," said MacBeath.