Retail consumers have responded to past hikes with a deafening silence. They just don't seem to notice or really care. It's about time they did: Canadian dairy prices are among the highest in the world. Indeed, in several product categories, they are the highest.

In 2006, Canada was the world record holder for butter and skim milk prices. A kilogram of butter cost $6.57 in Canada, three times the world average of $2.17; a kilogram of skim milk powder cost $5.24 in Canada versus $2.07 on the world market (prices in US$).

The average price of milk paid to producers in Canada was $52.97 per 100 kg in 2005. Second highest after Canada was the average price of $34.34 paid to producers in the European Union. New Zealand's prices were $24.88 (prices in US$).

Even though dairy prices are so high in Canada, they keep going up. Milk prices have risen 53% since 1994, almost twice the rate of inflation. Meanwhile, the cost of production has fallen 3.8% over the same period.

Source: CanadianBusiness.com