The Canadian Dairy Commission is raising the support prices for butter and skim milk powder.
Chair Alistair Johnston says the higher prices will offset the significant reduction in producer revenues in the last year.
He blames a decrease and world prices and larger sales of surplus milk protein in low-priced markets for those lower revenues.
The CDC says the change in those prices will mean an overall revenue increase of almost 2 point 8 per cent for dairy producers for milk processed into yogurt, ice cream, cheese and butter.
Prices farmers get for fluid milk are set through a separate process.
Restaurants Canada isn't happy with the price increase.
Vice President Pierre Cadieux says cheese is being priced off the menu.
Restaurants Canada argues the dairy supply management system is outdated.
Cadieux suggests solutions are needed that will increase volumes rather than always increasing prices.
