The increase is to cover increasing production costs and to reflect changes in the Consumer Price Index. The two are used in a formula to determine milk pricing.
The Feb. 1 increase would have been higher, but 2.5 per cent was deducted because there was an unusual price increase on Sept. 1.
Last year the Feb. 1 increase was 8.5 per cent.
The support price for butter – the price the commission pays for butter that the processors can’t sell for a better price to others – will increase from 10.0206 to 10.02180 on Feb. 1.
There is no change to processors’ butter-making margin nor to storage fees.
