Dairy industry warns of price hike as a result of New Brunswick plant closure

Dairy Farms

Consumers in New Brunswick should expect to pay more for milk as a result of the closure of the Saputo plant in Saint John.

The company announced the closure Thursday, to take effect a year from now, with the loss of about 70 jobs.

Paul Gaunce, chairman of the Dairy Farmers of New Brunswick, says farmers will now have to ship their milk as far as Victoriaville, Que., or Dartmouth, N.S., for processing.

He said the added cost will eventually be passed along to consumers, about two cents per litre.

Gaunce says there will be added logistics to deal with, but farmers have a year to prepare.

There are 176 dairy farmers in New Brunswick.