Canada – US Dairy Prices

Recently I did a Canada- US food price comparison and found the same distressing information that dairy product prices in Canada remain substantially higher than those in the US, due mainly to supply management policies which protect Canadian dairy farmers at the expense of consumers.

The evidence is as follows. On a recent day in September at similar grocery stores allowing for the exchange rate and adjusting for different package sizes, the price of two percent milk was 16% higher, plain cheddar cheese 32% higher, yogurt 57% higher and butter 13% higher in Canada. With inflation running at 3% annually, and the price of items such as gas about 20% higher in Canada than a year ago, one way to alleviate inflationary pressures is to amend domestic policies which are hurting consumers.

A few days later I found on the web similar information from the west coast which read as follows:

“We go for lunch and shop for dairy and gas every two weeks in Bellingham, Wa. Although it is a 100km round trip from our home in Delta BC and uses about 9 litres of gas, the cost is more than saved by the savings on milk (1/2 price at <$5 for two gallons), butter (four pounds for <$9) and cheese (5 pounds for <$12). Lunch for two at Applebees is about $10 (less) than the same lunch served at Applebees in Coquitlam. To date 2011, savings on gas is over $320 and the average cost per litre is $0.995. Easily pays for the NEXUS passes."

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