Farmers blame soaring milk prices on retailers
CBC News
Posted: Feb 11, 2013 12:11 PM NT
Last Updated: Feb 11, 2013 7:35 PM NT
Dairy farmers have been allotted an extra five cents per litre for their milk, but say some retailers are charging substantially more. (CBC )
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The chair of the Dairy Farmers of Newfoundland and Labrador says retailers, not farmers, are mostly to blame for a recent jump in the price of milk.
Pauline Duivenvoorden, who farms on Newfoundland's west coast, said the large jumps seen in the last few weeks by retailers are not solely due to dairy producers.
She said farmers are getting an extra five cents a litre because of higher grain and fuel costs, but that does not explain why costs at some retailers shot up by close to 50 cents.
Some metro St. John's retailers who had been charging about $3.60 for two litres of milk raised their rates to as much as $4.17. In rural areas, prices have been even higher.
She said consumers should ask retailers why costs are so high.
"Anyone paying over $4 on a two-litre should go to their store manager and ask the same question, and if they don't get a suitable answer they should shop around because it doesn't need to be up to that level," she told CBC News Monday.
Dave Collins of Central Dairies said Monday that processors are charging an extra four cents per litre.
The Dairy Farmers of Newfoundland and Labrador regulate prices paid to producers.
Duivenvoorden, a veterinarian who owns a farm on the north side of Deer Lake, said the last increase for dairy farmers was in 2010.
Duivenvoorden said dairy farmers have been carrying extra costs for corn and soy feed that needs to be imported, as the province does not grow enough feed for dairy herds.
There are about 40 dairy producers in the province, which has been self-sufficient in dairy production for more than a decade.
Duivenvoorden said that agricultural producers in Canada and abroad are also facing challenges from rising costs, including fuel and feed.
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