Milk prices to increase 4 cents per litre on Feb. 1

New Brunswick consumers will be paying four cents more per litre of milk next month.

Increased production costs, exchange rate among factors behind price hike, says N.B. Farm Products Commission

Retail milk prices in New Brunswick will jump by four cents per litre, effective Feb. 1, the provincial government's Farm Products Commission announced on Friday.

The price of milk in New Brunswick has increased by 8.4 cents per litre since 2014. (CBC)
The price hike is being blamed on several factors, including the increased cost of production, wage increases and the exchange rate on the U.S. dollar.

The industry is also bracing for more competition from global imports under the pending Trans-Pacific Partnership trade deal.

Consumers will now pay a minimum of $1.69 and a maximum of $2.06 for one litre of milk in a carton or plastic jug.

The increase comes on the heels of a 1.4 cent increase last year and three cent increase in 2014.

Pricing under the School Milk Program will remain unchanged for the current school year, the commission said in a statement.

Dairy producers and processors subsidize the program, started in 1995, by about $1 million per year, according to commission chair Bob Shannon.

"These subsidies ensure children have access to nutritious, high-quality milk, which is essential to their development," he said.

The commission represents producers, processors and consumers and is responsible for setting the price of fluid milk products in New Brunswick.


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