News Release Archive

The Nova Scotia Dairy Commission has approved an increase of two
cents per litre in the price of fluid milk, effective Aug. 25.

The increase is divided equally between dairy processors and
dairy farmers, and follows the commission's annual review of
costs for both sectors of the industry.

In the processing sector, increases in packaging costs, as well
as employment costs such as EI premiums and Workers Compensation,
led to an increase of one cent per litre for processors.

At the farm level, major increases in the cost of feed grains
--- the main input in milk production --- have squeezed producer
margins significantly in the last few months. Feed grain prices
are not expected to decrease in the short term. The one per cent
per litre increase in the producer price will offset a portion of
the increased feed costs.

The dairy industry is the largest sector in Nova Scotia
agriculture. The province's 455 dairy farmers produce 165,000,000
litres of milk annually, with a farm gate value approaching $100
million. In addition to fluid milk, the processing sector
produces a full range of dairy products.

The Nova Scotia Dairy Commission regulates the production,
processing, distribution and pricing of dairy products in Nova


Contact: Gabriel Comeau  902-893-6455

trp                   July 30, 1996 - 2:25 p.m.