Results of the cost of production survey, National Pricing Formula, and exceptional circumstances

October 8, 2026

Below are the results for the indexed cost of production (iCOP), annual change in the consumer price index (CPI), and National Pricing Formula (NPF). The criteria to initiate the exceptional circumstances mechanism are also evaluated. The formula results presented here do not necessarily correspond to a final price adjustment.

The CDC calculated the 2025 cost of production indexed to the three-month period ending August 2026. The 2026 iCOP is $97.06/standard hl. 

• Numbers from the 2025 cost of production survey (before indexation) confirm a decrease in on-farm costs compared to the 2024 survey results. There were rising costs in several cost categories, but overall, the 2025 standardized COP declined slightly, largely because of increased deductions from the sale of animals, lower interest costs, and improved labour and milk composition efficiencies which more than offset those increases.
• The 2026 iCOP increased by 4.57% from the 2025 iCOP. 
• Since 2025, prices for fuel and for feed rations have increased, meaning that indexing the 2025 COP results into 2026 gives us an increase compared to the 2025 iCOP.
• For more details on the results of the 2025 cost of production survey and 2026 iCOP, click here.
• Information on the methodology of the cost of production survey and pricing can be found here.

Evolution of selected indices:

Source: Statistics Canada indices: v1324952483; v1230996240, v1230996147; v1230996090; v1230996007; v41691058

The Consumer Price Index (CPI) is another variable used to determine milk component price changes. 

• Over the last two 12-month periods ending August 2026, the CPI has increased by 2.54%.

To calculate the magnitude of price adjustments to milk components, the National Pricing Formula (NFP) uses 50% of the annual change in iCOP and 50% of the annual change in CPI. 

• The NPF result is an increase of 3.5548% on February 1, 2027. This will not necessarily translate into the next price adjustment. 
• Alongside the NPF result, the CDC also evaluated whether stakeholders ^{Footnote 1} can invoke the exceptional circumstances mechanism. 
• Criteria 1 must be justified by stakeholders making the request (an unexpected event has occurred that was not accounted for in the most recent COP data). 
• Criterion 2 is not met. 
• Criterion 3 is not met. 

Stakeholders must inform the CDC in writing by 11 a.m. (ET) on October 15, 2026, whether or not they wish to invoke the exceptional circumstances mechanism. If exceptional circumstances are invoked, the result of the NPF will be suspended, and the CDC will hold consultations on a potential price adjustment and on the support price for butter. If none of the stakeholders invoke the mechanism for exceptional circumstances, the NPF result will apply, and the CDC will hold consultations on the support price for butter only.