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Last Updated: July 13, 2012
Dairy Farmers of Ontario (DFO) operates like a marketing co-operative. All milk bought by Ontario processors is purchased from DFO. DFO sets the price for “raw” milk in Ontario. Prices paid by processors are based on production costs. There is no control of Ontario’s retail pricing.

Every dollar collected from processors by DFO is returned to milk producers, less deductions for promotion of milk and dairy products, the costs to transport milk from their farms to the dairies, and administration of DFO, as well as deductions for research and CanWest DHI. In total these deductions amount to about six per cent of the price paid to the farmer.

How farmers are paid for their milk

Pricing based on production costs

No regulation of retail milk prices


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