Promised milk discounts for N.B. consumers are a no-show so far
Provincial rules that forbid low prices for milk prove difficult to overcome
Schemes developed by the New Brunswick Farm Products Commission and launched two months ago to deliver cheaper milk to the public this summer had not produced any discounts anywhere in the province as of mid July according to the body's acting general manager Jim Mockler.
"To date, the commission has not received an application to take advantage of any of the approved promotions," said Mockler in an email to CBC News.
Milk prices in New Brunswick are regulated by the Farm Products Commission and in some critical product areas, those prices are among the highest in Canada.
In May, according to Statistics Canada, the average cost to buy a four-litre jug, or four one-litre bags, of milk in New Brunswick was $8.31. Next door in Nova Scotia, the same products were selling for $6.97. Nationally, the average price was $6.45.
Milk is a staple food in households across Canada, particularly in households with children but in New Brunswick, high costs make it difficult for many to afford.
Emily Muir oversees the operation of the St. Stephen food bank and said demand for milk at the facility is high given the number of people who cannot afford to buy it on their own.
Emily
Muir (right) succeeded Donna Linton (left) as manager of the foodbank
in St. Stephen. Muir said milk is in high demand among foodbank users
but its cost makes it hard to supply to everyone. (Submitted by Emily Muir)
But the cost of milk is also a problem for the charity.
"Some people do heavily rely on us for that so that means they go without," said Muir.
"We get one shipment a month of dairy, which would probably do about 25 to 30 families. I'd love to see the cost go down so that we could make it more accessible."
Costs were supposed to be coming down this summer
In January in a presentation at the legislature, the Farm Products Commission told MLAs it had been working on a series of promotions to allow some price discounting of milk beginning in June, which it said it expected retailers would embrace.
"I don't want to get into too many details but the feedback with respect to those promotions has been outstanding," Mockler told MLAs.
"We are keeping in mind the effect that this is having on consumers and we are trying to improve upon pricing as best as we can."
But to date, the initiative has generated no detectable improvement in pricing, and price differences between New Brunswick and most other provinces remain wide.
In July, Walmart, which sells milk in all 10 provinces, was charging customers at its stores in Saint John, Moncton and Fredericton $8.28 for four-litre jugs of 2% milk.
That's well above what the company was charging at its stores in other medium-sized Canadian cities like Sydney, N.S. ($6.78), Lethbridge, Alta. ($5.79), Brandon, Man. ($5.58), Campbell River, B.C. ($5.39), and even Whitehorse, Yukon ($5.49).
Walmart stores in Ontario do not sell milk in four-litre jugs, but four one-litre bags of 2% milk in that province in July were selling for $5.89 in cities like Thunder Bay.
The higher price in New Brunswick is largely caused by rules that govern prices New Brunswick retailers, like Walmart, are required to pay the Agropur dairy in Miramichi.
Agropur, which is a large international co-operative dairy based in Quebec, is the last remaining processor of milk for consumers in New Brunswick.
Milk
is a staple product in many Canadian households, especially those with
children, but high prices in New Brunswick make it difficult to afford
for many. (Mike Heenan/CBC)
In an interview, Dominique Benoit, Agropur's senior vice-president of institutional affairs and corporate communications, said milk sold in sizes smaller than four litres in New Brunswick is not necessarily priced higher than national averages.
But in cases where they are higher, he said it is appropriate given the size of the New Brunswick market and the cost of operating a dairy to serve it.
"It's important to have an environment that allows for producers and to allow for processors to be healthy," said Benoit.
"The pricing regulation that the commission sets allows for having a healthy industry in the province."
Agropur obtains raw milk from New Brunswick dairy farmers at prices set nationally by the Canadian Dairy Commission. The current rate is 96 cents per litre and is identical to what dairy farmers in every province are paid.
In Miramichi, Agropur packages products under its own Northumberland brand name. It also packages Baxter brand name products on behalf of Saputo.
New
Brunswick's Farm Products Commission regulates milk prices in the
province. Its former chair Robert Shannon and acting general manager
Jim Mockler appeared before MLAs at the Legislature in January and
defended pricing decisions it has made. (New Brunswick Legislature)
Under rules set by the New Brunswick Farm Products Commission, retailers cannot negotiate prices with Agropur and must pay the dairy prices at or above a minimum set by the commission.
In the case of a package of four one-litre bags of milk, New Brunswick retailers must pay Agropur a legal minimum of $7.77. The minimum price for a four-litre jug of milk is $8.02.
That means when Walmart charges New Brunswick consumers $8.28 for a four-litre jug of milk, its share of that price is just 26 cents.
To prevent discounting to consumers, retailers are also forbidden to sell to the public for less than what they pay Agropur.
"The minimum retail price for fluid products shall not fall below the minimum wholesale price," the farm commission states in its pricing chart.
That rule effectively makes low prices for milk in New Brunswick against the law.
Dairy
farmers in New Brunswick are not paid any more for milk than farmers in
other provinces, even though prices to consumers can be substantially
higher. (Ryan Remiorz/The Canadian Press)
To try and improve on that rigid system in June, the commission unveiled various exceptions that would allow retailers to sell milk at a discount under some circumstances.
But it said retailers would have to sell milk at a loss to make discounts work since Agropur would still have to be paid its minimum price.
In one example, the commission devised a plan that would allow retailers to sell a four-litre jug of milk to consumers for $7.02, or four one-litre bags for $6.77, one dollar below their current minimum prices, in a promotion it called a "milk pricing holiday."
However, the rules require discounts to last for only 10 days at a time and be implemented no more than twice a year. The rules also require Agropur to be paid $8.02 for each four-litre jug and $7.77 for each four-litre bag sold to consumers during any discount event.
"The retailer assumes the cost of selling the product below minimum retail price," the commission explained in a document provided to retailers.
That, and other discounting plans devised by the commission, have so far not caught on with stores or provided savings to consumers.
Ross
Wetmore, the MLA for Gagetown-Petitcodiac, believes milk prices in New
Brunswick should be closer to national averages, but he's had a hard
time getting detailed information on why they are not. (Jacques Poitras/CBC)
Ross Wetmore is the MLA for Gagetown-Petitcodiac. He's a former grocer and former minister of Agriculture and says milk pricing in New Brunswick is not working for consumers. He believes amounts retailers have to pay the Agropur dairy are set too high.
"I can understand why people aren't buying milk because they can't afford it," said Wetmore.
"The price paid to dairy farmers are the same across the country and if that's the case, our price should certainly be close to the same across the board."
Wetmore asked the Farm Products Commission to supply information detailing exactly how it sets minimum prices for milk in New Brunswick during its appearance at the legislature.
He said the body told him later in an email Agropur's financial information, which is used to set minimum prices in New Brunswick, is confidential and could not be shared.
"I ran up against a brick wall," said Wetmore.
ABOUT THE AUTHOR
Tell me another one
We need a federal government with the intestinal fortitude to scrap supply management, but there's nothing in sight on that front.
Blaming the provincial government of the day is ludicrous.
the government needs to force the price to be i line with everywhere else, higher than the Yukon is unacceptable
Good luck seeing that come about
LONDON (AP) — Britain said on Monday it will grant hundreds of new oil and gas licenses in the North Sea in a bid for energy independence, ignoring calls from environmental campaigners and the United Nations to stop the development of new fossil fuel projects.
The plans announced by Prime Minister Rishi Sunak
Go Figure why Norway is so wealthy
Reply to Tyson Rose
The Dairy Farmers are doing just fine
Are they ever!
Many things are difficult to understand in milk pricing. With the closing of Baxter Dairies, Agropur became a much larger operation and theoretically leads to economies of scale. We live in Sussex, the dairy centre. We look across the RR tracks to two very large dairy operations with several more within a 10 km range. The milk marketing board is supposed to be designed to provide secure incomes for dairy farms but with provision for encouraging efficient and economical innovations and upgrades.
Our farms are adopting robotics, artificial insemination and embryo transfers and our cows are more efficient in producing milk than ever.
We are a very small province in Canada and the transportation costs in the central and western provinces must be far greater.
No doubt you have heard what I have said about such things Correct?
Just a day, or a time in little NB
Rod Hill
David Amos
Reply to Rod Hill
I agree
Daniel Franklin
Higgs should really call that election that he threatened us all with. Corporations and associations run this province and it's hurting the population in ways that will be difficult to measure. Homeless rates are way up. In NB's major cities, there are tents set up everywhere. This will only continue the more housing and food prices continue to climb.
Reply to Daniel Franklin
Please inform us what a change of Gov't.
would do (if that is what you are suggesting)??
One would find homelessness and high food prices
in every Province/Territory across the Country !!
Reply to Daniel Franklin
Homeless rates are up across Canada and have been made worse due to many poor policies put in by JT, but you keep thinking it is a Higgs issue.
I second that emotion
Reply to Ronald Miller
Regulations regarding rents IS a provincial responsibility, who is the Premier of the province Higgs.
Reply to Rosco holt
Reply to Rosco holt
Correlation and causation.. look it up.
So more quick trips south?
valmond landry
people should organized a co-op farming, buy a big property have their own cow and grow their own vegetable ,people have a tendency to have everything delivered at their doorstep.already made.
Shawn Tabor
Just for you folks,,,, check out the owners of a farm thats about 4 miles north of Apohaqui. Its called the Millstream. Not sure but interesting. LOL. Too funny. Not sure, but might be worth looking into. Its a new barn.
Jose Hemanas
A milk cartel...plain and simple...it's also disgraceful!...somewhat like, using the law to shift the production costs to the consumer(didn't we just see that with the oil refinery business?) Only in NB!
C'est Vrai
robert brown
Farm Products Commission is the reason for high prices just another commission with political appointees who milk us dry . Too many corporations hide behind the word confidential
Yup
Lloyd Walls
For those over 65, try buying your milk at SDM on seniors days.
20% discount on all regular prices.
Thanks for the tip
I remember when I was going to school the dairy farmers association ran a big campaign in the schools with prizes for those students that purchased the most milk at lunchtime. My parents didn’t buy milk at school for our lunches we drank our milk at mealtimes at home. This did not go well with the teachers promoting the program. Talk about being named and shamed for not participating in a corporate funded school program.
Wow
The sad state of affairs, in little NB. Today its milk. Folks you will find out more about the sad state of affairs on many topics in little NB. Wait till they bring up the Courts. When thats screwed up, it speaks volumes on every other topic. Anyone getting fead up. A wise man taught me, you have to look for the fun in it. Thanks Gandolf. LOL
I resemble that remark
Another completely messed up New Brunswick system. This would have been a much more worthwhile cause for the Higgs government to focus policy changes on.
William Peters
Reply to Jim Lake
Higgs will not fight the corporations. High milk prices is exactly like low prices for our wood--a boon for business and the economy.
Reply to Jim Lake
It's only milk. There are way worse issues than watered down milk
Reply to William Peters
You realize Agropur is a cooperative own by the dairy farmers themselves, right?
Reply to William Peters
Boon for the economy?
That depends where you stand. If you are a private woodlot owner, you can't get fair price for your lumber even when it's price is high.
Is that true?
A litre of milk often sells on par with a litre of gasoline in NB. Canada’s Dairy Commission is lobbied by big dairy businesses and farmers when it comes to price regulation just like the EUB is lobbied by energy sector companies. It’s only when consumers wages don’t keep up with the price increases that we hear about it in the news.
Reply to Le Wier
It is the New Brunswick Commission, not Canadian Commission, that is forcing the highest prices for milk in Canada on New Brunswickers.
Reply to Jim Lake
They work together. What does the Canadian Dairy Commission do?
The Commission provides a framework for managing Canada's dairy industry, a shared federal and provincial responsibility. It serves as a facilitator and intervener in forums that influence Canada's dairy policy, and coordinates federal and provincial dairy policies.Nov 2, 2022 they also work with Dairy Farmers of New Brunswick and they lobby the government.
Reply to Jim Lake
Dairy Farmers of New Brunswick (DFNB), a non-profit organization funded by dairy farmers, is the organization through which New Brunswick’s dairy farmers collectively market their raw milk.
DFNB is led by a Board of directors consisting of nine dairy farmers who are elected by farmers throughout the province. The Board creates policies designed to represent the interests of New Brunswick dairy farmers in their pursuit of operating sustainable dairy farms that produce high-quality milk within a supply management system.
Under the supply management system in Canada, raw milk production is matched to market demand. DFNB shares, with other provincial Boards, markets and revenues derived from marketing of raw milk used in industrial products such as cheese, yogurt, ice cream, butter, and skim milk powder and fluid products such as milk and cream.
FYI NB Power and the EUB are in court right now and my name is at the top of the list in the filing
What a complete joke. Another example of the provincial government being directly culpable to the food insecurity in the province. Size of the dairy would not account for 47% difference in price. In the Yukon with a smaller population it is sold for 5.49 for a 4l jug.
46% less than in NB.
The milk cartel.
There is no other word for it
Freddy Furlong
Only in New Brunswick would it be against the law to lower prices. Be in this place!
Should we feel proud?
Welcome to NB, home of the poorest citizen and the highest prices.
"Milk prices in New Brunswick are regulated by the Farm Products Commission and in some critical product areas, those prices are among the highest in Canada."
"New Brunswick has some of the highest natural gas distribution rates in North America for business, government and homeowners"
https://www.cbc.ca/news/canada/new-brunswick/natural-gas-new-brunswick-distribution-1.6014103
"New Brunswick ranks highest in: Rent increases."
https://www.cbc.ca/news/canada/new-brunswick/new-brunswick-firsts-higgs-tax-first-nations-1.6713596
Reply to Jack Bell
You had to go back over 2 years to prove your narrative, rather sad. As for rent increases, that is false, the Canadian site has shown other provinces including Ontario with much more substantial increases up to 40-50%.
Reply to Ronald Miller
"You had to go back over 2 years to prove your narrative"
.... thank you for pointing out my antiquated information.
If you round it up, 2 years is almost a century.
Is there even anyone from that long ago who is still alive anymore?
"other provinces including Ontario with much more substantial increases up to 40-50%."
WOW! 40-50%??!
Remind me again, is that higher or lower than 93%
"93 per cent more than she had been paying. "
https://www.cbc.ca/news/canada/new-brunswick/new-brunswick-tenants-fastest-rising-rents-1.6890652
Welcome to NB the place to be, where folks have got wealthy off the backs of taxpayers. They are writing up another subsidy as i comment
Reply to Shawn Tabor
Aren't they always.
Par for the course
Rules and regulations like we currently have is a reason that we should allow dairy from the usa into Canada. If we can not fix the system, than we might as well break it.
Reply to wade greenall
Refer that one to Ottawa.
Been there done that
Reply to wade greenall
The problem is milk from the US most likely contain hormones and other stuff not accepted in the Canadian food supply.
True
Reply to Rosco holt
Good to see a member of the current gov't looking into this.
He is my MLA and he is quitting
This comes to me as NO surprise is any way shape or form. It all boils down to corporate greed and government inaction. The milk mafia want the same profits from a small province with small population as they see in provinces like Ontario and Quebec. The government does not care either way, as all they care about is taxes! Pretty sad that the poor and working poor are now finding food and milk among other things are now a luxury and not a necessity!
Jos Allaire
Reply to Alex Butt
Together like all other necessities such as tattoos, cigarettes and booze.
So says a rich dude
Cow milk is not fit for human consumption anyway. It clogs our arteries. Calcium can be acquired in other foods.
Reply to Jos Allaire
It’s baby cow growth hormone.
Great marketing job though
We have been consuming it for thousands of years correct?
Shawn Tabor
Shawn Tabor
Maybe it's time to dismantle New Brunswick Farm Products Commission, who are they serving after all, if not the people?
Good point
The four one-liter bag does not exist instead there is the four liter bag consisting of three one and one/third bags.Milk should be cheaper than soft drinks if we want children to change habits.
Derek James
high cost of Milk
Tax Payers fund the Milk industry and we pay high prices too ... Nice ...
from every angle, eh ...
John Montgomery
Derek James
Reply to John Montgomery
I think the same of Liberal Governments ...
I guess, we can conclude Governments are so backwards with regards to what's good for people ...
Reply to John Montgomery
What is good for people, reducing taxes or raising them? When you figure that out take a look at what gov'ts have been doing which.
Reply to John Montgomery
You have hit the nail on the head.
Reply to John Montgomery
Do you think this has suddenly become a "new issue"? The high cost of milk in NB has been with us for a very long time. What have the Liberals ever done about it that the Conservatives haven't? NOTHING.
Reply to Douglas James
No, he missed it again.
Reply to Don Corey
This is so true, thank you
I see you have crossed paths with Shawn and Dougy Say Hey to them for me will ya?
Reply to Don Corey
Reply to John Montgomery
Reply to John Montgomery
Reply to Don Corey
like we expected the Que. takeover to benefit us
Jos Allaire
Reply to Toby Tolly
No they're not! Like we expected, Irving is buying Agropur and is taking over.
Reply to Jos Allaire
Surely you jest
Jos Allaire
Reply to Toby Tolly
...doesn't matter WHAT commodity it is... if it involves money... Government
wants to control it and siphon off as much as it can.
Problem is ... almost every business that it gets involved with... suffers.
Reply to Trevis Kingston
Nay not so
John Pokiok
Want cheap milk you need to drive to Calais to get it.
Reply to John Pokiok
Poor quality like most foods coming from the US. You get what you pay for.
Reply to Jos Allaire
Sure you can than keep on paying for your imaginary quality I will buy cheap milk 75% cheaper chicken and 50 cents cheaper gas but hey what ever floats your boat.
Reply to John Pokiok
Glad NB borders with Maine
Reply to John Pokiok
I do not buy any milk, just a bit of powdered milk to put in my tea.
Reply to Jos Allaire
I want real milk in my coffee before I pick up the phone and call lawyers and politicians
Minister of Agriculture, Aquaculture and Fisheries (Minister's Office)
Agriculture, Aquaculture and Fisheries
| Contact Information | Phone | Location | |
|---|---|---|---|
|
JOHNSON, MARGARET (Minister)
|
P: (506) 453-8466
|
Fredericton
|
|
|
ROSS, MARC-ANDRÉ (Executive Assistant )
|
P: (506) 453-8003
|
Fredericton
|
|
|
THIBODEAU, JOLAINE (Administrative Assistant )
|
P: (506) 453-8466
|
Deputy Minister (Deputy Head's Office)
Agriculture, Aquaculture and Fisheries
| Contact Information | Phone | Location | |
|---|---|---|---|
|
GUIGNARD, STÉPHANIE (Executive Secretary)
|
P: (506) 453-6417
|
Fredericton
|
|
|
LAROCHELLE, CATHY (Deputy Minister)
|
P: (506) 453-6417
|
Fredericton |
Farm Products Commission
The Farm Products Commission (Commission) supervises the activities of commodity Boards and Agencies formed under the Natural Products Act (Act) to ensure they operate in the manner consistent with the purpose and intent of the Act.
Some of the activities of the Commission include:
- license those involved in the dairy products trade;
- sets the price for fluid milk products sold in the province;
- food Inspection as it relates to product quality and standards;
- conducts appeal hearings;
- administers the conciliation-arbitration process respecting potatoes used for processing;
- negotiates and serves as a signatory to federal-provincial agreements for supply managed commodities.
Members
- Bob Shannon (Chair)
- Kevin McKendy (Vice-Chair)
- Paul Chiasson (Commissioner)
- Robert Speer (Commissioner)
- Victor Somerville (Commissioner)
- Rebekah Nason (Commissioner)
- April Sexsmith (Commissioner)
- Marcel Michaud (Commissioner)
Boards and Agencies
Apple Growers of New Brunswick
2-150 Woodside Lane
Fredericton, NB E3C 2R9
Ken Carrier, Chair
Sophie Mazerolle, General Manager
Tel: 506-440-5257
Apple Plan and Levies
Apple Plan Administration
Canneberges NB Cranberries
6 Station Road
Dorchester, NB E4K 3A1
Laurie Chiasson, Vice-chair
Melvin Goodland, General Manager
Tel: 379-1886
Cranberry Plan and Levies
Cranberry Plan Administration
Dairy Farmers of New Brunswick
P.O. Box 5034
Sussex, NB E4E 5L2
Wietze Dykstra, Chair
Steve Michaud, General Manager
Tel: 432-4330
Milk Plan and Levies
Milk Plan Administration
New Brunswick Egg Producers
275 Main Street, Suite 101
Fredericton, NB E3A 1E1
Hans Kristensen, Chair
Sarah Loftus, General Manager
Tel: 458-8885
Egg Plan and Levies
Egg Plan Administration
Potatoes NB
PO Box 7878
Grand Falls, NB E3Z 3E8
Gilles Godbout, Chair
Matt Hemphill, General Manager
Tel: 473-3036
Potato Plan and Levies
Potato Plan Administration
Bleuets NB Blueberries
82 Westmorland Street, Unit 301
Fredericton, NB, E3B 3L3
René Chaisson, Chair
Donald Arsenault, Executive Director
Tel: 506-260-5771
Blueberry Plan and Levies
Blueberry Plan Administration
Chicken Farmers of New Brunswick
277 Main Street, Suite 103
Fredericton, NB E3A 1E1
Hugh Harmon, Chair
Louis Martin, General Manager
Tel: 452-8085
Chicken Plan and Levies
Chicken Plan Administration
NB Cattle Producers
2-150 Woodside Lane
Fredericton, NB E3C 2R9
Trevor Welch, Chair
Cedric McLeod, General Manger
Brenda MacLoon, Office Manager
Tel: 458-8534
Cattle Plan and Levies
Cattle Plan Administration
Porc NB Pork
2-150 Woodside Lane, Suite 2
Fredericton, NB E3C 2R9
Stephen Moffett, Chair
Tim Seeber, General Manager
Tel: 458-8051
Hog Plan and Levies
Hog Plan Administration
277 Main Street, Suite 103
Fredericton, NB E3A 1E1
Ernie Gorham, Chair
Louis Martin, General Manager
Tel: 452-8103
Turkey Plan and Levies
Turkey Plan Administration
| Contact Information | Phone | Location | |
|---|---|---|---|
|
HALLETT, KERRIE (Specialist)
|
P: (506) 470-8845
|
Fredericton
|
|
|
MCLEAN, BIANCA (Analyst)
|
P: (506) 230-2109
|
Fredericton
|
|
|
MOCKLER, JIM (General Manager [Acting] )
|
P: (506) 453-4067
|
Fredericton
|
|
|
POFFENROTH, LAURA (Manager)
|
P: (506) 230-2109
|
Fredericton
|
|
|
SHANNON, BOB (Chairperson)
|
P: (506) 230-2109
|
Fredericton |
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