I was looking up the price of milk from several years ago to compare it to the price we were paid for milk and thought you might like to know the result.
In 2004 (statistics Canada) the "average retail price of a litre of milk in Canada" was $1.71
In 2007 (Statistics Canada) the "average retail price of a litre of milk in Canada " was $2.03
The difference being $0.32
From our records at home (Prince Edward Island):
In 2004 we were paid (average for the year) $0.754 per litre.
In 2007 we were paid (average for the year) $0.851 per litre.
Difference of $.097 per litre. Obviously the rest of the increase went to the processors and retailers.
People are complaining about the "significant price increase of milk" making it unaffordable to many Canadians. Really?
I think you would find it interesting to see the comparison. People often complain about the increasing cost of buying food but if you look at the list and add up everything (I left off paper towels, shampoo, cigarettes, etc - not food) the difference between May 2004 (179.92) and Feb 2008 (189.37) is 9.45
Interesting!
Linda Boswell
Marshfield Jerseys, Prince Edward Island
Monday, April 28, 2008
New Entrant Programs....nation wide?
One aspect of the dairy industry that some provincial milk marketing agencies neglect to focus on is a young/new entrant program. We need to encourage capable members of the next generations to become part of one of the most economically challenging ventures in agriculture-starting a dairy farm!
The Jersey Ontario Milk Marketing committee has encouraged establishment of such a program in our province but it is yet to happen here. We need a merger/joint venture/new entrant program in our province to slow down the rapid rise in the average age of dairy farmers. Do other provinces have new entrant programs in operation?
Wayne Simpson
Chasena Jerseys, Ontario
The Jersey Ontario Milk Marketing committee has encouraged establishment of such a program in our province but it is yet to happen here. We need a merger/joint venture/new entrant program in our province to slow down the rapid rise in the average age of dairy farmers. Do other provinces have new entrant programs in operation?
Wayne Simpson
Chasena Jerseys, Ontario
Thursday, March 6, 2008
Thoughts on Skim Milk Powder
By Ross Campbell, Milk Marketing Consultant to Jersey Canada
The operators of supply management in the Canadian dairy industry know the amounts of butter fat (BF) and skim solids required to supply Canadian consumers. Using that information they then set a quota on BF, and effectively set a quota for skim solids (SS) by setting a ratio of SS that will be accepted as domestic product.
The effective SS quota is set higher than domestic requirements to allow producers who choose to ship milk with a SS/BF ratio higher than domestic requirements to meet the market for BF without being penalized for shipping surplus SS.
A similar courtesy is NOT extended to those producers who ship milk with a BF/SS ratio higher than domestic requirements… they are NOT allowed to meet the domestic requirements for SS without being penalized for shipping surplus BF. This appears to be pure discrimination!
As a result of this policy, considerable amounts of skim milk powder were dumped on world markets until recently. It is mostly dumped into animal feed. Canadian dairy farmers had pricing power to be prosperous even in operating this inefficient market.
Currently there is a move to price all SMP at world market price in hopes of disguising the fact that it is being sold for well under the cost of producing the milk components that go into it.
Some provinces have set artificially high prices on BF and artificially low prices on SS to try to reduce the impact of this discrimination. This does not work until virtually all the milk price is attached to BF!
If we truly believe in supply management, both producers of high SS/BF, and high BF/SS will be allowed to meet the market for the component that they are shortest in without penalty for their higher component. It can be done. If there is the political will among Canadian dairy farmers we can have non-discriminatory policy that will very closely meet Canadian domestic requirements with very little surplus of either BF or SS.
The operators of supply management in the Canadian dairy industry know the amounts of butter fat (BF) and skim solids required to supply Canadian consumers. Using that information they then set a quota on BF, and effectively set a quota for skim solids (SS) by setting a ratio of SS that will be accepted as domestic product.
The effective SS quota is set higher than domestic requirements to allow producers who choose to ship milk with a SS/BF ratio higher than domestic requirements to meet the market for BF without being penalized for shipping surplus SS.
A similar courtesy is NOT extended to those producers who ship milk with a BF/SS ratio higher than domestic requirements… they are NOT allowed to meet the domestic requirements for SS without being penalized for shipping surplus BF. This appears to be pure discrimination!
As a result of this policy, considerable amounts of skim milk powder were dumped on world markets until recently. It is mostly dumped into animal feed. Canadian dairy farmers had pricing power to be prosperous even in operating this inefficient market.
Currently there is a move to price all SMP at world market price in hopes of disguising the fact that it is being sold for well under the cost of producing the milk components that go into it.
Some provinces have set artificially high prices on BF and artificially low prices on SS to try to reduce the impact of this discrimination. This does not work until virtually all the milk price is attached to BF!
If we truly believe in supply management, both producers of high SS/BF, and high BF/SS will be allowed to meet the market for the component that they are shortest in without penalty for their higher component. It can be done. If there is the political will among Canadian dairy farmers we can have non-discriminatory policy that will very closely meet Canadian domestic requirements with very little surplus of either BF or SS.
Friday, May 11, 2007
Quota/Incentive Increases - More notice needed?
Welcome to Jersey Canada's Milk Marketing blog. Please feel free to leave comments on any posts to this forum - discussion is encouraged!!
Across Canada, marketing boards have set quota increases and extra credit days to fill sagging milk supply across the country. While this is largely a positive for dairy producers, it does pose some challenges.
Given that there was little or no advance notice of these increases, many producers do not have the herd inventories available to meet milk supply needs, and had no warning to make adjustments in herd inventory to prepare for increased production.
I'm wondering why there was not more advance notice and awareness of this supply shortage and subsequent need for quota/incentive increases? As late as early April, we were informed here in Alberta at producer meetings to stay within our quota holdings.
Is there a communication breakdown between Dairy Farmers of Canada and the provincial milk boards? Or, is it a problem at the provincial level that we as dairy farmers aren't getting information transferred fast enough to us in order to make the best business decisions possible? Regardless of herd size, making breeding decisions and herd management decisions is rarely an overnight process, and requires as much market knowledge and lead-time as possible.
Adrian Haeni,
Didsbury, Alberta
Chair, Jersey Canada Milk Marketing Committee
Across Canada, marketing boards have set quota increases and extra credit days to fill sagging milk supply across the country. While this is largely a positive for dairy producers, it does pose some challenges.
Given that there was little or no advance notice of these increases, many producers do not have the herd inventories available to meet milk supply needs, and had no warning to make adjustments in herd inventory to prepare for increased production.
I'm wondering why there was not more advance notice and awareness of this supply shortage and subsequent need for quota/incentive increases? As late as early April, we were informed here in Alberta at producer meetings to stay within our quota holdings.
Is there a communication breakdown between Dairy Farmers of Canada and the provincial milk boards? Or, is it a problem at the provincial level that we as dairy farmers aren't getting information transferred fast enough to us in order to make the best business decisions possible? Regardless of herd size, making breeding decisions and herd management decisions is rarely an overnight process, and requires as much market knowledge and lead-time as possible.
Adrian Haeni,
Didsbury, Alberta
Chair, Jersey Canada Milk Marketing Committee
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