Steep price increases, which took effect at many grocery stores on Tuesday, are as high as 15 per cent in some provinces and coincide with a spike in the price farmers are paid for the milk they produce.
This dramatic price hike will affect everyone who consumes milk, but it will hurt low-income and food-insecure families most, consumer advocates say.
”If families start being unable to provide milk to their kids or they start rationing it or diluting it, you’re going to start to see an increase in health concerns,” said Arianna Scott, CEO of Alberta Food Banks.
Global News reporters in multiple provinces compared the price they paid for a four-litre bag of milk this week with the price they paid in January.
In Toronto, the price jumped to $5.39 from $4.69 at two grocery stores: NoFrills and Loblaws, which are both owned by Loblaw Companies. That’s a 14.9 per cent increase. At Longo’s, the price increased to $5.49 from $4.79.
In Halifax, the price at Atlantic Superstore, also owned by Loblaws, went to $6.29 from $5.79. That’s an 8.6 per cent increase.
1:58 Canada’s inflation rates continue to soar but Saskatchewan fares best in the country
Canada’s inflation rates continue to soar but Saskatchewan fares best in the country – Jan 20, 2022
And in Calgary, the price at Superstore went to $5.39 from $4.65. That’s a 15.9 per cent increase. Price hikes were the same at grocery stores in B.C.
Jeff Doucette, general manager of Field Agent Canada, a digital marketing company based in Calgary that tracks the price of milk across Canada, said this week’s increase is the “biggest we’ve seen in one stroke” since it began reporting on milk prices in 2015.
“Supermarkets are not going to eat the price increase that dairy farmers are passing along to them,” he said.
Doucette said other supermarkets which had not yet put their prices up to match Loblaw’s would likely do so in the coming weeks.
Multiple requests for comment from Loblaws, Longo’s, Walmart and Sobey’s were ignored.
A spokesperson for Metro, which also owns Food Basics, refused to answer questions, saying: “Metro does not comment on future pricing or pricing strategies.”
The government didn’t answer any questions about the increased cost of dairy and whether it was justified given the economic strains many Canadians are facing due to rising inflation and the ongoing pandemic.
Why Canadian milk prices are rising
The Canadian Dairy Commission announced in November that farmers would receive an 8.4 per cent increase to the price they’re paid for the milk they make beginning Feb. 1.
This is the largest annual increase in history and nearly twice the previous record.
The price increase is meant to offset rising costs for dairy farmers, especially feed costs, which the commission said have gone up by as much as 30 per cent over the past two years. The commission said the price hike is also meant to give farmers a chance to recuperate some of the higher costs associated with the COVID-19 pandemic.
2:17 Dairy Commission suggests rise in Canada’s already high milk prices
Dairy Commission suggests rise in Canada’s already high milk prices – Nov 24, 2021
“This decision, which represents six cents per litre of milk leaving the farm, was made after careful consideration and consultation with all the stakeholders across the supply chain,” said commission spokesperson Chantal Paul in a written statement.
“Farmers must be able to meet their expenses and pay their local suppliers and employees. These trends exist in all parts of the agriculture sector.”
But a Global News investigation found the record-breaking price hike was pushed higher by dairy farmers who asked for steeper increases than what retail and consumer groups wanted.
And while Doucette said he believes the increase given to dairy farmers this year was justified, he also said the whole pricing system, along with the regulation around dairy in Canada, is “really, really wonky.”
“You can buy a two-litre bottle of coke at Walmart (in Calgary) and in Mississauga and it will be the same price,” he said. “But at the same two stores, there’s a $1 difference in a four-litre jug of milk.”
This is partly because farmers pass on their costs of production, Doucette said. If production costs go up, these costs are passed on to processors with the approval of the dairy commission. If production costs go down, the dairy commission would need to consider reducing the price farmers are paid. Doucette said this limits incentives for farmers to find efficiencies and cost savings.
1:29 Rising milk prices will hurt diets of low-income families
Rising milk prices will hurt diets of low-income families – Nov 24, 2021
According to the 2021 Field Agent report, the cheapest place in Canada to buy a four-litre bag of milk, which is used as a benchmark due to a lack of price fluctuations across different stores in each province, is Sudbury, Ont., where shoppers pay an average of $4.68. Prices differ across the rest of the country, from $7.19 in Moncton, N.B., to $6.86 in Quebec City to $4.65 in Winnipeg.
The most expensive milk is in St. John’s, N.L., at $1.95 per litre, as the province doesn’t stock four-litre bags. The report didn’t include the country’s territories.
Differences in provincial regulations and the size of local markets also lead to varying prices, he said. In Atlantic Canada — where milk prices are highest — farms are smaller and there are fewer customers.
Processors left guessing
But it’s not just consumers who are being forced to pay more for their dairy this week — processors are feeling the squeeze, too.
Processors buy raw milk from farmers and then turn it into end products for the consumer, such as butter, cheese and yogurt. Those processors then sell their products to retailers. This leaves several opportunities throughout the supply chain for costs to be added to the final price consumers pay at the cash register.
Ashley Chapman, vice president of Chapman’s Ice Cream, said that along with the eight per cent increase paid to farmers for drinkable milk, other milk prices have skyrocketed, including a 22 per cent increase for skim milk powder and a 53 per cent increase for dairy whey. Both of these products are used to make ice cream.
Ashley Chapman, vice-president of Chapman’s Ice-cream.
Brent Rose / Global News
“In the past 14 months, not only has every single component to make my product gone up, but everything that supports my business in a 360 degree way has gone up — whether it’s a bolt for a machine or a cleaning product,” he said.
Chapman said he’s forced to guess what a large chunk of his costs will be each year because retailers, such as major grocery store chains, allow companies like his to negotiate prices for their products only once a year. This happens before increases to milk prices are announced.
Chapman also said he supports supply management — which maintains a fixed price for farmers to protect them from market volatility — because it supports local dairy farmers, but the intricate system doesn’t work because there “doesn’t seem to be any end to the rising cost of doing business.”
Cost increases are necessary
The increased price paid to farmers is only part of the reason why milk prices have gone up. Other costs, from processing to transportation, plus retailer’s costs, are also factored into the final prices that appear on grocery store shelves.
Mathieu Frigon, president and CEO of the Dairy Processors Association of Canada, said the increase given to farmers is only part of the equation; processing and distribution costs also need to be added.
2:35 Canadian milk, butter, yogurt prices expected to soar in the new year
Canadian milk, butter, yogurt prices expected to soar in the new year – Nov 2, 2021
Frigon wouldn’t comment on what those additional costs are, but said Statistics Canada data shows processing costs for dairy products increased 11.5 per cent in 2021 compared with the previous year.
“How those inflationary pressures are dealt with is obviously up to each individual dairy processor,” Frigon said.
Canada has three main dairy processors: Lactalis, Agropur and Saputo. Agropur and Saputo did not respond to requests for comment.
Mark Taylor, Lactalis Canada’s president and CEO, said all communications about pricing with retailers are “private and confidential.” But he confirmed the company has increased costs above and beyond the increase farmers started receiving on Feb. 1.
“Dairy has been … doubly impacted by both inflationary and regulatory increases including, but not limited to, manufacturing, transportation, ingredients, packaging and distribution costs,” Taylor said.
TORONTO – Will Taylor Swift bring chaos or do we all need to calm down?
It’s a question many Torontonians are asking this week as the city braces for the arrival of Swifties, the massive fan base of one of the world’s biggest pop stars.
Hundreds of thousands are expected to descend on the downtown core for the singer’s six concerts which kick off Thursday at the Rogers Centre and run until Nov. 23.
And while their arrival will be a boon to tourism dollars — the city estimates more than $282 million in economic impact — some worry it could worsen Toronto’s gridlock by clogging streets that already come to a standstill during rush hour.
Swift’s shows are set to collide with sports events at the nearby Scotiabank Arena, including a Raptors game on Friday and a Leafs game on Saturday.
Some residents and local businesses have already adjusted their plans to avoid the area and its planned road closures.
Aahil Dayani says he and some friends intended to throw a birthday bash for one of their pals until they realized it would overlap with the concerts.
“Something as simple as getting together and having dinner is now thrown out the window,” he said.
Dayani says the group rescheduled the gathering for after Swift leaves town. In the meantime, he plans to hunker down at his Toronto residence.
“Her coming into town has kind of changed up my social life,” he added.
“We’re pretty much just not doing anything.”
Max Sinclair, chief executive and founder of A.I. technology firm Ecomtent, suggested his employees avoid the company’s downtown offices on concert days, saying he doesn’t see the point in forcing people to endure potential traffic jams.
“It’s going to be less productive for us, and it’s going to be just a pain for everyone, so it’s easier to avoid it,” Sinclair said.
“We’re a hybrid company, so we can be flexible. It just makes sense.”
Swift’s concerts are the latest pop culture moment to draw attention to Toronto’s notoriously disastrous daily commute.
In June, One Direction singer Niall Horan uploaded a social media video of himself walking through traffic to reach the venue for his concert.
“Traffic’s too bad in Toronto, so we’re walking to the venue,” he wrote in the post.
Toronto Transit Commission spokesperson Stuart Green says the public agency has been working for more than a year on plans to ease the pressure of so many Swifties in one confined area.
“We are preparing for something that would be akin to maybe the Beatles coming in the ‘60s,” he said.
Dozens of buses and streetcars have been added to transit routes around the stadium, and the TTC has consulted the city on potential emergency scenarios.
Green will be part of a command centre operated by the City of Toronto and staffed by Toronto police leaders, emergency services and others who have handled massive gatherings including the Raptors’ NBA championship parade in 2019.
“There may be some who will say we’re over-preparing, and that’s fair,” Green said.
“But we know based on what’s happened in other places, better to be over-prepared than under-prepared.”
Metrolinx, the agency for Ontario’s GO Transit system, has also added extra trips and extended hours in some regions to accommodate fans looking to travel home.
A day before Swift’s first performance, the city began clearing out tents belonging to homeless people near the venue. The city said two people were offered space in a shelter.
“As the area around Rogers Centre is expected to receive a high volume of foot traffic in the coming days, this area has been prioritized for outreach work to ensure the safety of individuals in encampments, other residents, businesses and visitors — as is standard for large-scale events,” city spokesperson Russell Baker said in a statement.
Homeless advocate Diana Chan McNally questioned whether money and optics were behind the measure.
“People (in the area) are already in close proximity to concerts, sports games, and other events that generate massive amounts of traffic — that’s nothing new,” she said in a statement.
“If people were offered and willingly accepted a shelter space, free of coercion, I support that fully — that’s how it should happen.”
This report by The Canadian Press was first published Nov. 13, 2024.
TORONTO – Hundreds of Taylor Swift fans lined up outside the gates of Toronto’s Rogers Centre Wednesday, with hopes of snagging some of the pop star’s merchandise on the eve of the first of her six sold-out shows in the city.
Swift is slated to perform at the venue from Thursday to Saturday, and the following week from Nov. 21 to Nov. 23, with concert merchandise available for sale on some non-show days.
Swifties were all smiles as they left the merch shop, their arms full of sweaters and posters bearing pictures of the star and her Eras Tour logo.
Among them was Zoe Haronitis, 22, who said she waited in line for about two hours to get $300 worth of merchandise, including some apparel for her friends.
Haronitis endured the autumn cold and the hefty price tag even though she hasn’t secured a concert ticket. She said she’s hunting down a resale ticket and plans to spend up to $600.
“I haven’t really budgeted anything,” Haronitis said. “I don’t care how much money I spent. That was kind of my mindset.”
The megastar’s merchandise costs up to $115 for a sweater, and $30 for tote bags and other accessories.
Rachel Renwick, 28, also waited a couple of hours in line for merchandise, but only spent about $70 after learning that a coveted blue sweater and a crewneck had been snatched up by other eager fans before she got to the shop. She had been prepared to spend much more, she said.
“The two prized items sold out. I think a lot more damage would have been done,” Renwick said, adding she’s still determined to buy a sweater at a later date.
Renwick estimated she’s spent about $500 in total on “all-things Eras Tour,” including her concert outfit and merchandise.
The long queue for Swift merch is just a snapshot of what the city will see in the coming days. It’s estimated that up to 500,000 visitors from outside Toronto will be in town during the concert period.
Tens of thousands more are also expected to attend Taylgate’24, an unofficial Swiftie fan event scheduled to be held at the nearby Metro Toronto Convention Centre.
Meanwhile, Destination Toronto has said it anticipates the economic impact of the Eras Tour could grow to $282 million as the money continues to circulate.
But for fans like Haronitis, the experience in Toronto comes down to the Swiftie community. Knowing that Swift is going to be in the city for six shows and seeing hundreds gather just for merchandise is “awesome,” she said.
Even though Haronitis hasn’t officially bought her ticket yet, she said she’s excited to see the megastar.
“It’s literally incredible.”
This report by The Canadian Press was first published Nov. 13, 2024.
OTTAWA – Via Rail is asking for a judicial review on the reasons why Canadian National Railway Co. has imposed speed restrictions on its new passenger trains.
The Crown corporation says it is seeking the review from the Federal Court after many attempts at dialogue with the company did not yield valid reasoning for the change.
It says the restrictions imposed last month are causing daily delays on Via Rail’s Québec City-Windsor corridor, affecting thousands of passengers and damaging Via Rail’s reputation with travellers.
CN says in a statement that it imposed the restrictions at rail crossings given the industry’s experience and known risks associated with similar trains.
The company says Via has asked the courts to weigh in even though Via has agreed to buy the equipment needed to permanently fix the issues.
Via said in October that no incidents at level crossings have been reported in the two years since it put 16 Siemens Venture trains into operation.
This report by The Canadian Press was first published Nov. 13, 2024.
