Highlights
- The average Canadian prices for dairy products such as yogurt, butter, and cheese were lower than the average national prices in the U.S. in 2025.
- More than 9 in 10 Canadians believe it is important to ensure Canada has as much control as possible over our food supply.
Canadians are right to be concerned about rising grocery costs; dairy farmers and their families feel that pressure too. So why is supply management often singled out in grocery affordability debates? It’s time to take a closer look at dairy prices.
Like any business, farmers get paid for the milk we produce, but the price we get is set annually by the Canadian Dairy Commission (CDC), a federal regulatory agency. It takes into account national inflation and farmers’ costs of production. Depending on these variables, it can decrease or increase. In 2026, that price increased by 2.32%, but it decreased by 0.0237% in 2025. Few industries’ prices are so transparent and stable.
Dairy farmers do not set the retail price of milk. And like most grocery products, milk goes through a supply chain. The farm is the first step. From there milk goes to processors. The final step in the value chain is retailers or restaurants.
All along the chain, value is added and pricing decisions are made. That’s why when the price set by CDC decreased in 2025, retail prices didn’t automatically follow.
Even taking into consideration the price farmers are paid and the value added by supply chain, the inflation on retail dairy prices has been line with or lower than overall food inflation in recent years. In 2025, food inflation rose 3.2% year over year, compared to a 2.1% increase for dairy.
Additionally, Canadian dairy retail prices are competitive with those in the U.S. The average Canadian prices for dairy products such as yogurt, butter, and cheese were lower than the average national prices in the U.S. in 2025.
According to data available from Statistics Canada and its U.S. counterpart the Bureau of Labour Statistics, in 2025, average retail yogurt prices in Canada averaged $2.09 per kilogram less than in the U.S. Over the same period, Canadian average retail cheese and butter prices were also lower by $4.26 and $2.03 per kilogram respectively.
Canadian retail milk prices were approximately CA$0.19 per litre higher than in the U.S. – but Canadian prices are still lower than many other developed countries according to data from the International Dairy Federation.
It’s also important to note that many countries provide direct production subsidies to farmers, meaning consumers in those countries pay twice for their dairy, once at the grocery store and again through their taxes. Dairy farmers in Canada do not benefit from any direct production subsidies.
Canada’s dairy farmers are grateful to work under supply management because it offers stability and confidence for farmers and for consumers. Canadian dairy delivers a consistent, reliable supply of high-quality milk produced on local farms in every province from coast to coast, a real advantage in times of trade tensions and global uncertainty.
In fact, a recent Nanos poll found that more than 9 in 10 Canadians believe it is important to ensure Canada has as much control as possible over our food supply. Canadian dairy is an investment in just that.
Canadian dairy farmers are proud that the work we do in our barns and in our fields helps feed Canadian families, while building up our rural communities, our national economy, and Canada’s food security.
Every hard-earned dollar that Canadians spend matters: dairy farmers are confident in the quality food we bring to the table and are grateful for the confidence Canadians place in us.
