Milk prices to increase 4 cents per litre on Feb. 1

Retail milk prices in New Brunswick will jump by four cents per litre, effective Feb. 1, the provincial government'sFarm Products Commission announced on Friday.

The price hike is being blamed on several factors, includingthe increased cost of production, wage increases and the exchange rateon the U.S. dollar.

The industry is also bracing for more competition from global imports under the pending Trans-Pacific Partnership trade deal.

Consumers will now pay a minimum of $1.69 and a maximum of $2.06 for one litre of milk in a carton or plastic jug.

The increasecomes on the heels of a 1.4 cent increase last year and three cent increase in 2014.

Pricing under the School Milk Program will remain unchanged for the current school year, the commission said in a statement.

Dairy producers and processors subsidize the program,started in1995, by about $1 million per year, according to commission chair Bob Shannon.

"These subsidies ensure children have access to nutritious, high-quality milk, which is essential to their development," he said.

The commission represents producers, processors and consumers and is responsible for setting the price of fluid milk products in New Brunswick.