CRFA Monitoring Milk Price Hike

As it states on their website, “CRFA works to ensure that government understands and values the tremendous contribution our industry makes to the economy and social fabric of Canada. We also make sure your voice is heard on important issues ranging from taxes to dairy prices.”

Being proud members of the Canadian Restaurant and Foodservices Association, Synergy Merchant Services can testify to the great work that they do on behalf of all of their members. And as we’ve been pretty clear about lately, we look forward to meeting with many of those members, between March 6th and 8th, this year at the annual CRFA Show at Toronto’s Direct Energy Centre.

Today, however, QMI Agency reports yet another step that CRFA will be taking on behalf of its members. According to the report, restaurants and pizza chains across Canada are complaining about a new hike in dairy prices. This increase is making it more difficult for these food providers to compete with the frozen food market, says CRFA.

QMI reveals that the Canadian Dairy Commission intends to raise the price of industrial milk by 1.5 per cent today. Of course, the main ingredient in such products as cheese, yogurt, butter and ice cream, milk is pretty much a necessity in restaurants throughout the country.

As a result, restaurants will be paying more for the cheese they use for pizzas, for example, than what frozen pizza makers must pay under the dairy supply management system. Thankfully, the CRFA has long been known as an organization that fights to level the playing field in such situations for the restaurant and foodservices industry.

Explained Garth Whyte, the president and chief executive of the Canadian Restaurant and Foodservices Association: “When restaurant owners buy cheese, they are forced under the supply management system to pay prices that are 30% higher than frozen-pizza makers pay for the exact same product. This latest price hike from the CDC will make it even harder for our members to compete.”

The QMI report goes on to note that restaurateurs are also at a disadvantage because of the 13 per cent harmonized sales tax charged on restaurant bills. Meanwhile, frozen food purchases are not hit with HST. The CDC has noticeably increased the price of industrial milk by 60 per cent since 1994. Meanwhile, milk production has only grown by 6 per cent.

This discrepancy is sure to be something that the CRFA will look further into when taking this matter to higher levels in order to create a compromise or resolution of some kind. As always, we fully support their undertakings and recommend that if you are in the restaurant or foodservices industry, you strongly consider membership with CRFA.