The Milk Producer - September 2009 - (Page 44)

MARKETS P5 consultation meeting requested O ntario plans to consult its P5 provincial partners before making a decision on whether to reduce producer quotas, fall productive incentive days or both. A P5 meeting could be held mid-September with the Dairy Farmers of Ontario (DFO) board making a decision at the end of September. Last fall, P5 milk production lagged, mostly due to poor feed quality. Producer quotas in the pool were over-issued for most of the 2008-09 dairy year to encourage production— not to reflect actual market demand. Quota issued to Ontario producers currently exceeds provincial quota and its share of P5 market innovation volumes by 1.3 per cent. DFO’s board has requested a meeting to determine a clear, concise decision by the P5 Quota Committee on the level of quota issuance for the pool on Dec. 1. As well, discussions would determine whether individual provinces should take any action before December. Production strengthens Ontario has been filling its monthly provincial quota plus its share of P5 innovation volume since March. “The province’s milk supplies have been strong this spring and summer due to the abnormally cool weather bolstered by a build-up in cow numbers that has been going on since last fall,” says Phil Cairns, DFO’s senior policy adviser. Provincial quota utilization was 102.05 per cent in June and 101.8 per cent in July. Cairns projects August, September and October will be at or slightly above 100 per cent. Ontario finished the 2008-09 dairy year on July 31, 1.2 per cent under its provincial quota. However, the current production curve projects the P5 and Western Milk Pool blend prices* The graph below shows the 12-month blend price for the P5 provinces and the Western Milk Pool (WMP). *There is a two month lag reporting these figures. Solids non-fat to butterfat (SNF-BF) ratio This graph shows Ontario’s SNF-BF ratio for the last 12 months in relation to Ontario’s target SNF-BF ratio of 2.2840. 2.45 76 74 72 70 68 66 P5 $72.02 WMP $73.87 2.4 SNF-BF Ratio 2.35 2.3 2.25 2.2 2.15 2.3364 Blend price in $/hL July 2008 Aug 2008 Sept 2008 Oct 2008 Nov 2008 Dec 2008 Jan 2009 Feb 2009 Mar 2009 April 2009 May 2009 June 2009 P5 blend price WMP blend price Ontario’s SNF-BF ratio 44 | September 2009 | MilkPRODUCER Aug 2008 Sept 2008 Oct 2008 Nov 2008 Dec 2008 Jan 2009 Feb 2009 Mar 2009 Apr 2009 May 2009 June 2009 July 2009 Target SNF-BF ratio

Table of Contents for the Digital Edition of The Milk Producer - September 2009

Milk Producer - September 2009
Contents
Editor's Notes
DFO Chair's Message
Dairy Update
Farm Finance
DFC Promotion
World School Milk Day
Producer Profile
Research
Environmental Issues
Ruminations
Applied Science
Markets
New 'N' Noted
Back Forty

The Milk Producer - September 2009