Ottawa (Rural Roots Canada) – The Canadian Dairy Commission (CDC) says farmgate milk prices – what farmers are paid for their milk – will rise by 2.3% starting February 1, 2026.
The increase follows the Commission’s annual pricing review and consultations with industry stakeholders. It’s based on the National Pricing Formula, which considers both production costs and the Consumer Price Index.
While Canada’s inflation rate stayed within target through 2024, producers continue to face higher costs, particularly for animal feed and labour. The CDC says the adjustment reflects a balance between keeping dairy affordable for consumers and helping farmers manage rising expenses.
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The combined effect of the pricing formula and higher carrying charges means the cost of milk used to make products like cheese, yogurt, and butter will rise by about 2.4%, or just over two cents per litre.
The announcement comes on the heels of news that the support price for butter will also rise in February, increasing from $10.35 to $10.57 per kilogram, reflecting higher milk component costs and storage charges.
The new farmgate milk prices will take effect once approved by provincial authorities later this year.
