Dairy farmers among most recent food producers squeezed by skyrocketing input costs

    OTTAWA, July 7 /CNW Telbec/ - Dairy Farmers of Canada asked the Canadian
Dairy Commission last week to implement an immediate increase of 3.5 cents per
litre for milk sold from farms. The request was reiterated during
consultations held by the Commission on skyrocketing cost increases on dairy
    "Dairy farmers are being squeezed by high costs for the most important
inputs on their farms," said Jacques Laforge, President of Dairy Farmers of
Canada. "Our data for October 2007 to August 2008 shows that fuel prices will
have increased by more than 40%, feed will have risen almost 20% and
fertilizer and herbicides costs will have climbed 46%. These are drastic
increases for any business. Many farmers across Canada need this increase to
stay solvent."
    Dairy farmers urged the Commission to take action as soon as possible
given the significance of the increases. There is a long lag between the
formula used by the Commission to calculate the costs of producing milk on
farms and their ability to reflect the costs of the current situation via a
price increase. By the time the formula catches up, the increased costs will
have gone up even more.
    "We think that under the current circumstances, the Commission should
immediately act to offset these cost increases. An interim increase would
alleviate cost pressures facing farmers sooner and avoid a drastic increase in
the winter, which could disrupt the ongoing stability of our markets,"
continued Mr. Laforge.
    Dairy farmers remain committed to providing the highest quality products
possible. Despite the urgency being felt on farms, the supply of milk and
dairy prices have been stable and consumers will continue to find a wide
selection of nutritious dairy products on supermarket shelves.

For further information:

For further information: Shelley Crabtree, A/Assistant Director, Policy
& communications, (613) 236-9997 x 251, Shelley.Crabtree@dfc-plc.ca

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