OTTAWA, October 30, 2026
The Canadian Dairy Commission (CDC) announced today an increase to the support price for butter that will be effective February 1, 2027. The support price for butter will increase from $10.5662 per kg to $10.6366 per kg.
The support price for butter is used by the CDC when buying and selling butter under its Domestic Seasonality Program. Under this program, the CDC balances seasonal changes in supply and demand on the domestic market by buying butter from manufacturers and storing it when milk production is high and demand for dairy products low – usually in the spring and selling this butter back to manufacturers when the situation reverses itself, usually in the fall. These transactions occur at the support price. This support price contains three elements: carrying charges, the processors’ make allowance and the price of milk components.
The CDC’s carrying charges will increase from $0.0254 per kg of butter to $0.0312 per kg of butter. The CDC collects carrying charges to partially offset the cost of storage programs, which are factored into the support price.
The processor’s make allowance for butter will remain unchanged.
These support price serves as a benchmark for provincial authorities when setting farm-level milk prices.
For more information, please contact:
Shana Allen
Deputy Director, Communications and Strategic Planning
Tel.: 613-302-7575
Email: Shana.Allen@cdc-ccl.gc.ca