Rising cost of milk and dairy impacting farmers, families and food banks

The average family of four is expected to spend an extra $200 on dairy this year as milk prices hit new highs.

Experts say the cost of milk and dairy products has increased five to 15 per cent since the start of February, with local farmers suggesting production costs could put them out of business.

Eric Wright owns and operates Wrico Holsteins with his family in Midhurst.

The dairy producer says his 102 dairy cows represent roughly 70 per cent of the farm's income, and that income is important.

"The real data shows the actual cost to produce milk in the last two years has gone up 13.5 per cent, and we're just taking in an eight per cent increase in the price, so it's not going to make us whole even by their data," Wright explains.

The Midhurst dairy farmer says every production cost associated with the farm has gone up, forcing the latest jump in prices at supermarkets. From fuel to feed pellets to protein mash, everything costs more.

"If our costs kept increasing, as it has been, at some point in the next 12 to 14 months, our milk check would not cover our expenses, and when that happens, you're not a business for very long," Wright says.

Food banks are also bracing for the ripple effect.

"We're confident that we'll still be able to supply the people of Barrie that are experiencing food insecurity. We are going to have to move some numbers around and find the dollars and cents in other places," says James Ward, Barrie Food Bank operations manager.

The Barrie Food Bank hands out more than 1,200 litres of milk a month, and despite milk donations, it will feel the increases in the first quarter of the year.

Experts say this is the single largest increase in the cost of milk the industry has seen in 50 years.