TORONTO, Jan. 31 /CNW/ - 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
"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.
SOURCE Canadian Restaurant and Foodservices Association
For further information:
Prasanthi Vasanthakumar, Communications Specialist, 1-800-387-5649, ext. 4254 or firstname.lastname@example.org