There are some common myths that surround the price of dairy products in Canadian grocery stores, we’ve addressed some here:
Is milk more expensive in Canada?
Recent news suggests that because of supply management (the Canadian system used to match milk production with demand) you pay more than anyone for milk at the grocery store. This isn’t true. An independent report found that Canadians are right in the middle with the amount of money they pay for their milk. It is true that regular milk in the United States (with the growth hormone rBST) is a bit cheaper than here in Canada (where rBST is outlawed) BUT Americans pay more for milk labeled rBST-free than Canadians. Additionally, the only things cheaper on Canadian grocery shelves than milk is soda drinks. Milk is $0.37/250mL while soda is $0.23/250mL, energy drinks top the list at $1.62/250mL. The milk you buy is high-quality, locally produced, healthy and affordable.
“Rich” dairy farmers are taking advantage of the poor consumer, and that isn’t fair!
Actually, in the production chain from dairy farmer to retailer, dairy farmers receive the least amount of your money. For example, if you were to buy a glass of milk at a restaurant for $2.50, the dairy farmer who milked the cow to get that milk would receive $0.23. If you were to buy a pizza for $16.77 at a restaurant, the farmer who milked the cow that made the cheese for your pizza would receive $0.60.
Additionally, supply management removes the need for government subsidy in the dairy industry. Many other countries heavily subsidize farmers. In Canada, you pay for dairy once at the grocery store and that is it. ZERO percent of your taxes go to Canadian dairy farmers. How great is that?