Milk quota frozen

The Glengarry News - - The Classified­s -

No new milk quota will be is­sued in the 2017-2018 dairy year as pro­duc­tion is ex­ceed­ing de­mand, the P5 boards have con­cluded.

Com­prised of On­tario, Québec, New Brunswick, Nova Sco­tia and Prince Ed­ward Is­land agen­cies, the P5 board had ap­proved a five per cent saleable quota in­crease in July of last year.

How­ever, in its most re­cent de­ci­sion the board re­ports that pro­duc­tion is cur­rently in­creas­ing faster than pro­jected mar­ket growth with the P5 prov­inces cur­rently be­ing at max­i­mum skim­ming ca­pac­ity.

Go­ing for­ward the large num­ber of un­der­pro­duc­tion cred­its held by P5 pro­duc­ers could in­crease the pro­duc­tion and mar­ket im­bal­ance.

As a re­sult of high pro­duc­tion lev­els, as of Jan­uary 31 the but­ter stocks were 29,385 tonnes and it is pro­jected that the tar­get but­ter stock lev­els of 35,000 tonnes may be ex­ceeded by Au­gust 1, 2018. Cream re­quire­ments are cur­rently be­ing met and any sur­plus cream leads to in­creased but­ter stocks.

Tak­ing all these fac­tors into ac­count, the P5 boards have de­cided not to ex­tend the in­cen­tive day be­yond March. The boards also agreed there will be no fur­ther quota is­suance in the 20172018 dairy year.

The boards will be re­view­ing pro­duc­tion in re­la­tion to mar­ket re­quire­ments in April 2018. If P5 pro­duc­tion does not sta­bi­lize, the boards will con­sider fur­ther pro­duc­tion re­duc­tion mea­sures to bring pro­duc­tion in line with mar­ket re­quire­ments.

Newspapers in English

Newspapers from Canada

© PressReader. All rights reserved.