The Canadian Dairy Commission is cutting the support price for skim milk powder.
The price goes from just over $6.47 per kilogram to just over $6.31.
The support price of butter will not change.
The support prices are what the CDC pays when it buys and sells butter and skim milk powder to balance seasonal changes in demand in the domestic market.
They're also used by provincial marketing boards to price industrial milk.
Canadian Dairy Commission Chair Randy Williamson says the reduction in the skim milk powder price reflects a drop in the cost of producing milk in Canada in the last year.
The price change goes into effect March 1st.