The rising cost of fuel is hitting dairy farmers hard, their organization said Thursday, meaning Canadians may be paying more for products including cheese, butter and ice cream.

Cost increases for dairy farmers normally go through each Feb. 1, but they say the situation is so dire that they are seeking an off-schedule hike now.

"Usually we look at it once a year, but now the price of feed, fuel and fertilizer has escalated so much," said Jacques Laforge, chair of the Dairy Farmers of Canada.

They have asked the Canadian Dairy Commission for an increase of 3.5 cents per litre on industrial milk, which is used to make products such as cheese, butter, yogurt and ice cream, but doesn't include table milk.

Laforge said the increase — which could represent about a four per cent increase in prices for consumers — may come into effect on Sept. 1, if approved.

But the Canadian Restaurant and Foodservices Association is opposing the request, saying any further increase in the already high cost of dairy will price items like cheese right off restaurant menus.

"That used to be a thing that we loved about pizza in the old days," said Ron Reaman, the association's vice-president. "No longer. It's just not price competitive and effective to sell double cheese on pizza, for example."

They also say they oppose the timing of a possible increase.

"We take great exception to a mid-year extra price increase because we are committed to pricing structures and contract terms throughout a year," Reaman said. "We really need that predictability to ensure ongoing business."

Fertilizer, gas prices hurting farmers

Laforge said it's not an ideal situation, but a necessary one because of skyrocketing prices for dairy farmers. Last year, he bought fertilizer at $275 a tonne, and this year it's costing him $750 a tonne.

Gas prices are also hitting farmers hard, Laforge said, as a tractor that cost him $400 to fill nine months ago now costs between $700 and $800 to gas up.

Resources are being stretched so thin by those rising costs that many farms need the increase just to stay solvent, Laforge said.

"Every year that we go for a price increase [the restaurant association] is always there, saying it shouldn't increase," he said.

"If it doesn't increase pretty soon, there won't be any farmers. If you had followed the recommendation of the restaurant people over the last five years or 10 years, all of the farmers would be bankrupt."

Laforge said nobody likes cost increases, so he can't blame the restaurant industry for wanting to fight it. But he said if the dairy commission doesn't act soon, the quality of dairy products in Canada could suffer.