The price of milk in Canada is rising again with the second increase this year in September. The price will increase by about two cents per liter starting from the first of September, an increase of 2.5 percent.

The interest rate hike was announced on Tuesday afternoon by the Canadian Dairy Commission (CDC), an institution that says the sector is dealing with higher prices due to inflation.

The mid-year price increase is happening under "exceptional circumstances." Milk pricing is usually adjusted only once a year.

Feed, energy, and fertilizer costs have been particularly affected, rising by 22 percent, 45 percent, and 55 percent respectively since August 2021."

The first milk price increase this year occurred on the first of February when costs rose by six cents per liter, or about 8.4 percent.

The commission said this second price increase will affect the retail price of all dairy products.

Also, the adjustment will increase the price of milk used in the manufacture of dairy products such as milk, cream, yogurt, cheese, and butter for the retail and foodservice sectors by an average of 2.5 percent."