Farmers to Receive More for Milk

Milk prices will increase across the province next week. Part of the increase will go to farmers and part to milk processors. It means that consumers may pay an additional eight cents for a litre of milk.

Dairy farmers will receive an additional five cents per litre for their product. The Nova Scotia Natural Products Marketing Council approved the increase, which will come into effect on Tuesday, Feb. 1.

Processors are expected to add three cents to the cost of a litre of milk in order to cover rising costs of processing and distribution.

The dairy farmers' portion is part of an increase announced by the Canadian Dairy Commission in December 2004. The five cents per litre will cover increasing farm costs, as well as farm revenue reductions resulting from the closure of the United States border to Canadian cattle.

The Natural Products Marketing Council is an independent agency of the Nova Scotia Department of Agriculture and Fisheries. The council oversees nine farm marketing boards, including Dairy Farmers of Nova Scotia, which sets the farm price of milk, subject to ratification by the council.

The price of milk under the Nova Scotia school milk program will not increase.