Most provincial marketing boards are expected to therefore
cut the price of milk used to make cheeses, yogourts and skim milk powder by
1.8 per cent or $1.49 per hectolitre.
The commission is reducing the support price, effective
March 1, for skim milk powder from $6,4754 per kilogram to $6.3109.
There will be no change in the support price for butter, in
the processing margin for dairies and in storage fees.
The commission said production costs have declined, promping
the support price reduction.
It said the cost of feed, milk transportation, fuel and
interest payments have all declined.
Interest payments in Ontario are bound to be coming down
because farmers have virtually no quota available to buy, so they can devote
all of their profits to reducing debt loads.
