The price of milk in Canada is going up again.
It marks the second increase this year, and will take place in September.
The farm gate price will increase by about two cents per litre, an increase of 2.5 per cent.
Dr. Stuart Smyth, an Associate Professor in the Department of Agricultural and Resource Economics at the University of Saskatchewan tells CKTB the increase highlights the inefficiency of a subsidized industry.
"Farmers don't have to be competitive when they know their profits are guaranteed. In terms of childhood nutrition, milk and dairy products are fundamental for life-long life health. The dairy industry is dumping millions of litres of milk on an annual basis. I really think if the federal government has an interest in helping out you and I. We really need to rethink whether supply management is a sound option for good childhood nutrition."
The rate hike was announced by the Canadian Dairy Commission, a crown corporation that says the sector is dealing with higher prices due to inflation.
Milk pricing is usually adjusted just once per year.
The increase is being blamed on higher costs of feed, energy, and fertilizer.
It's expected that dairy products such as milk, cream, yogurt, cheese and butter will all go up 2.5 per cent come September.