New Brunswick’s dairy consumers will pay 3.5 cents per litre more for milk beginning Sept. 1, the New Brunswick Farm Products Commission announced Tuesday.
“The price adjustment is wholly based on the effects of the rise of fuel costs throughout the supply chain,” chairman Hazen Myers said in a provincial release. “Rising fuel costs not only affect distribution costs, but also operating and feed costs for the producer as well as packaging costs for the processor.”
Dairy producers and fluid milk processors will each get an increase of 1.45 cents per litre. Dairy producers face rising fuel, fertilizer and feed costs, while processors face rising distribution and packaging costs, the commission said. With the standard markup at retail factored in, consumers can expect to pay an additional 3.5 cents per litre in stores.
“The commission feels that by implementing these adjustments, it has succeeded in upholding its mandate of balancing the interests of producers and processors while maintaining competitive prices for New Brunswick consumers,” Myers said.
School milk prices, meanwhile, will remain unchanged for the upcoming school year.