,
 

Alberta Fluid Milk Price Formula (Class Ia)

 
 
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Monthly Report - August 1, 2008
MonthYear
Alta
Dairy
Feed
$/tonne
Alta
Hay
Price
$/tonne
Alta
Farm
Wage
$/month
Fuel and
Utilities
price
index
Machine
and
Equipment
price
index
Building
CONSTR'N
price
index
Interest
Rate

%
GDP
inflation
index
W. Canada
Milk
Consum.
1/month
Price Formula
Price
Set by
A.E.U.B.
$/hl
Composite
Index
Computed
Price
$/hl
Livestock
Rev. Adj't
$/hl
Adjusted Computed Price
$/hl
Suggested
Price
$/hl
Weight
21
14
16
4
3
6
4
22
10
100
Base Month
July
2002
257.14
142.80
1977.36
1.53
101.20
114.7
4.65
98.47
7.82
100.00
70.90
71.07
70.67
.
August
2007
284.49
98.09
2346.67
2.74
84.3
172.8
3.35
114.9
7.56
108.77
77.12
1.14
78.26
77.93
77.93
September
284.64
100.64
2393.33
2.74
82.7
179.5
3.39
116.6
7.56
110.12
78.07
1.20
79.27
78.91
77.93
October
295.74
101.36
2388.13
2.78
82.7
179.5
3.42
116.6
7.56
111.16
78.82
1.23
80.04
79.89
77.93
November
301.07
101.36
2366.67
2.76
82.7
179.5
3.45
116.6
7.38
111.19
78.83
1.26
80.09
79.89
78.91
December
299.79
100.64
2366.67
2.78
80.7
183.9
3.48
116.3
7.38
111.19
78.83
1.39
80.22
79.89
79.89
January
2008
310.27
102.19
2406.25
2.89
80.7
183.9
3.50
116.3
7.38
100.00
81.51
1.57
83.07
83.37
79.89
New Base Month
January
2008
310.27
102.19
2406.25
2.89
80.7
183.9
3.50
116.3
7.38
100.00
81.51
1.57
83.07
83.37
79.89
February
2008
320.90
103.74
2314.29
3.03
80.7
183.9
3.52
116.3
7.98
101.34
82.60
1.69
84.29
84.35
79.89
March
327.17
105.58
2371.43
2.91
78.6
186.8
3.54
117.6
7.98
102.53
83.56
1.69
85.25
85.33
83.37
April
335.81
103.31
2409.29
2.83
78.8
186.8
3.55
117.6
7.98
102.95
83.91
1.58
85.49
85.33
84.35
May
344.64
101.76
2416.43
3.14
78.6
186.8
3.56
117.6
7.76
103.53
84.38
1.39
85.78
85.33
85.33
June
350.33
100.64
2448.57
3.46
79.1
191.7
3.55
118.9
7.76
104.84
85.45
1.20
86.65
86.31
85.33
July
363.46
101.36
2462.86
3.70
79.1
191.7
3.55
118.9
7.76
106.25
86.60
1.10
87.70
87.29
85.33
August
372.22
103.19
2477.14
3.98
79.1
191.7
3.55
118.9
7.61
107.37
87.51
1.10
88.61
88.27
.
Notes:

a. In the February, 2008, price report, the January "computed price" and the "suggested price" were increased by $1.52 per
hectolitre to facilitate industry programs administered by Alberta Milk.
b. Monthly indices are divided by the January 2008 base and multiplied by the weight. The sum of these values yields the
"composite index." The composite index multiplied by the base price results in the "computed price".
c. The "suggested price" in the price formula changes when the "computed price" for the current month deviates from the
previous month's "suggested price" by 49 cents or more. In the above table, 88.61- 87.29=1.32. Since $1.32 is
greater than 49 cents, the current month "suggested price" does show a change from last month.
The Alberta Utilities Commission (AUC) sets the actual milk price for the current month based largely on the
"suggested prices" of the pricing formula.
d. The "suggested price" in the formula changes in $0.98 intervals.
e. Indices are based on the latest available data and usually lag behind the current month.
f. In December, 2004, a "livestock revenue adjustment" was added to the milk price formula to provide partial compensation for
lost sales revenue due to the BSE situtation. It is based on price indices for cull cows and bull calves.
g. In May, 2007, Statistics Canada changed the base year for the GDP price index and the machinery/equipment price index
from 1997 to 2002.
h. The AUC has called for an increase to class 1a milk in the Province of Alberta to $86.31 per hectolitre, effective August 1, 2008.


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For more information about the content of this document, contact Richard Heikkila.
This document is maintained by Gail Atkinson.
This information published to the web on September 5, 2003.
Last Reviewed/Revised on August 1, 2008.