Prince Edward Island’s minimum wholesale price of fluid milk and cream products will rise two cents a litre on Sept. 1, the P.E.I. Marketing Council announced Thursday.
The council did not increase the minimum home delivery price of fluid milk products, chairman Gordon MacBeath said in a provincial release. Distributors are expected to adjust their home delivery selling prices to offset increased costs associated with the declining market for that service.
Fluid milk products include homogenized (standard) milk, two per cent and one per cent milk, skim milk and chocolate milk. Fluid cream products include blend, table cream and whipping cream.
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“Producers will receive approximately 1.45 cents per litre of the increase while processors will see their average margins increase by about 0.55 cents a litre,” MacBeath said.
In establishing the Class 1 producer price, the council took into account a recent similar producer price increase for milk used in industrial milk products announced by the Canadian Dairy Commission because of increased producer input costs.
The processor margin increase is meant to help offset some of the recent increases in energy and packaging costs, the council said.
Prices established by the council are minimum prices, MacBeath said, and processors and distributors may sell their products above the minimum prices if they wish. Retail prices are not regulated, he added.
