New Brunswick Farm Products Commission

Milk prices to increase Feb. 1 (10/01/27)

NB 115

Jan. 27, 2010

FREDERICTON (CNB) - The retail price of milk will increase one cent per litre starting Monday, Feb. 1. The New Brunswick Farm Products Commission made the announcement today.

"The price of milk in New Brunswick will rise 0.7 per cent over last year's price, a very modest increase, which reflects the increase that dairy producers and processors have had in their input costs," said Hazen Myers, commission chairman.

Because of the increase, dairy producers will receive an additional 0.3 cents per litre, while fluid milk processors will receive an extra 0.5 cents per litre. Retailers will continue to receive their standard markup. As hoped for after last year's price increase, the sustained reduction in fuel prices served to lower production and operating costs during this past production season.

"The commission feels that by implementing these adjustments, it has succeeded in upholding its mandate of balancing the interests of producers and processors while maintaining competitive prices for New Brunswick consumers," Myers said.

School milk prices will remain unchanged for the upcoming academic year. Under this program, processors and producers in recent years have been subsidizing the price of milk for school children in New Brunswick at a cost of $1.3 million per year. This program provides a significant saving to schoolchildren in the province.

"I commend the dairy industry, the dairy producers and processors, for their long-standing support of this important program," Myers said.

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

10/01/27

MEDIA CONTACTS: Hazen Myers, chairman, or Robert Goggin, general manager, New Brunswick Farm Products Commission, 506-453-3647.

10/01/27