After years of taking a hit on pricy cheese, restaurant owners may be getting some relief — and it’s thanks to plunging oil prices.
The Canadian Dairy Commission has announced it will be reducing the price of skim milk powder, a product used to make cheese and yoghurt, by 1.8% starting March 1.
The commission said lower feed, transportation and fuel costs meant the cost of production had decreased, and therefore the price could be lowered. It’s the first decrease in several years.
Restaurants Canada, a trade association that represents restaurants across Canada, applauded the decrease and urged the full price reduction to be passed on to retaurateurs.
In Canada, foods like dairy, eggs and turkey are price-controlled through a supply management system.
While critics charge that the system keeps prices high for consumers and prevents Canada from developing export markets for dairy, advocates say the system protects farmers from unpredictable price swings that could put them out of business.
@jenstden
