OTTAWA, November 1, 2022
The Canadian Dairy Commission (CDC) announced today an increase to the support price for butter that will be effective February 1, 2023. The support price for butter will increase from $10.0206 per kg to $10.2180 per kg.
The support price for butter is used by the CDC when buying and selling butter under its Domestic Seasonality Program. Under this program, the CDC balances seasonal changes in supply and demand on the domestic market by buying butter from manufacturers and storing it when milk production is high and demand for dairy products low – usually in the spring, and selling this butter back to manufacturers when the situation reverses itself, usually in the fall. These transactions occur at the support price. This support price contains three elements: the processors’ make allowance (or margin), the carrying charges and the price of milk components.
The processor’s make allowance for butter as well as the carrying charges will remain unchanged.
The increase in the support price is due to an increase in the price of milk components.
For more information, please contact:
Chief, Communications and Strategic Planning