Cheaper pizza for Canadians on the horizon

http://www.cbc.ca/news/canada/windsor/s … pizza.html

I have not been able to find out from anywhere what the reduction will be. I saw one article that mentioned 70 cents per kilogram but nothing official. If that is the case and the full 70 cents is passed on to the end user it only amounts to a 7% reduction which offsets about 2 years of mandatory price increases. The most recent increase was April 1st even though there was an announcement on March 15th the new classification had been approved.

I am not expecting any great decrease at this point in time.

Spent a couple of hours on phone today with various Gov agencies. Ended up talking direct to the CDC.
The new milk class , 3D, will be for mozzarella ONLY. The actual percentage rebate has yet to be determined? and or announced. When I suggested it would be the same as the 5A license ( approx 30% ) she actually laughed… "No no, not even close, MAYBE 10% ". This will be given to the manufacturer. End users are to register with the cdc and get a “license”.
Licensed users qualify for whatever amount, if anything, Sysco or whoever you get your cheese from, chooses to pass along. The manufacturers are SUPPOSED TO pass the rebate along to the distributor. The distributor is SUPPOSED TO pass it along to us.
Percentage of milk used and some other arcane measures will be used to determine what percentage of the full rebate amount will apply to a certain product.
Bottom line, we will be VERY lucky to see a couple of points. For those of us that only use 50% Mozza blended with other cheeses the net becomes almost nill.
The pizzeria owner blabbing to the press about price of pizza dropping 10% is doing us all a lot of harm…
Oh yeah, there will be no backdating of the rebate. Only applicable once you have your license. Program begins June 1. THEY DON’T EVEN HAVE THE APPLICATION PROCESS FIGURED OUT YET!!! No way can you start the process today. Told will be announced next few weeks… No surprise though, they HAVE got the required reports and tracking process figured out lol…

If we do see 10% reduction as an end user, my food cost savings per pizza would be about 23 cents on a 14" pizza or around 90 cents difference on the menu. At that level I would just keep my prices where they are rather than doing the price increase I had planned.

Yeah, due to my blend being only 50% mozza I figure I would save less than 10c per pizza… That’s at the high end of a 10% rebate…

A hit for chains importing cheese as part of a “topping kit”…

http://www.theglobeandmail.com/report-o … e16012293/