The Milk Producer - October 2009 - (Page 4)

EDITOR’SNOTES By Bill Dimmick In praise of grandparents Hard-fought battles of yesteryear have given us the industry stability we enjoy today s soon as my son and daughter reached the age when they could legally vote, I made sure they were registered. I also took—they might describe it as dragged—them to polling stations to vote in federal, provincial and even municipal elections. They were among the few in their peer groups who regularly marked an X on ballots. I never hesitated to tell my children why I was so adamant about voting. “Your grandparents had friends who went to fight in Europe during World War II and never came back. They fought a war so you would have the right to vote,” I explained. A bit simplistic, but I made my point. We can easily come up with many more examples of how parents, grandparents and great-grandparents made sacrifices that would improve life for generations to come. In that regard, Canadian dairy farmers need only look back to the generation of families who milked our nation’s cows in the 1960s and early 1970s. These producers laid down the foundation of the supply-management marketing system we have today. They also had the support of a few farsighted politicians such as Gene Whelan, the federal agriculture minister back then, and William Stewart, who held the portfolio provincially in Ontario. They rank among the best political friends the dairy industry has ever had. Collectively, these producers and politicians saw the wisdom of coming up with a better way of selling milk. Over the years, our uniquely Canadian system evolved, and continues to evolve. It has brought to the industry in THE MILK PRODUCER is published monthly by Dairy Farmers of Ontario 6780 Campobello Road, Mississauga, Ontario, L5N 2L8 EDITOR: Bill Dimmick ASSISTANT EDITOR: Sharon Laidlaw Co-ordinated by Communications and Planning Division, Bill Mitchell, Assistant Director. Change of address notices should be sent to: THE MILK PRODUCER 6780 Campobello Road, Mississauga, Ontario L5N 2L8. Subscription rates: $25.20 for one year, $46.20 our nation a stability that is all too elusive elsewhere in the world. As we document in this month’s cover story, dairy farm families have been enduring serious financial hardship in Europe and the U.S. during the past year. Many are seeking some type of supply management marketing system to pull themselves back from the brink of insolvency—this year, and in the years to come. While researching this article, I ran across an analysis of one U.S. proposal that would create a disincentive for over-production. Two Cornell University economists explain in simple terms why unfettered milk production puts producers on an unending price roller coaster. When prices are good, dairy farmers produce more milk, chasing those prices. Surpluses then develop, prices fall and farmers drop out of the industry. That results in less milk and prices go up. The cycle starts all over again. It’s actually quite predictable. What can’t be predicted are what the economists call shocks to the system. They cite weather, feed quality, steep input cost increases, or sudden loss of export markets due to recession. These shocks can worsen an already bad situation as we’ve seen in the U.S. and Europe. There is simply too much milk chasing too small a market, pushing prices below production costs. As Canadians, we wish the American and European dairy farmers well in their quest for better marketing systems. If they’re successful, their grandchildren will thank them. Opinions expressed herein are those of the author and/or editor and do not necessarily reflect the opinion or policies of Dairy Farmers of Ontario. Publication of advertisements does not constitute endorsement or approval by The Milk Producer or Dairy Farmers of Ontario of products or services advertised. The Milk Producer welcomes letters to the editor about magazine content. Phone: (905) 821-8970 Fax: (905) 821-3160 bdimmick@milk.org slaidlaw@milk.org Website: Go to publications at www.milk.org E-mail: for two years and $63.00 for three years in Canada (includes GST), $36 per year in the U.S., $36 per year overseas. Single copy: $2.50. Make cheques payable to Dairy Farmers of Ontario. Canada Post Publications Mail Sales Product Agreement No. 40063866. Return postage guaranteed. Circulation: 10,000. ISSN 0030-3038. Printed in Canada. NATIONAL MARKETING MANAGER James Fitzgerald, 257 Huntingdon Avenue, Stratford, Ontario N5A 6P7. Toll-free advertisers only: 1-888-460-6212 Phone (519) 273-9369/Fax (519) 273-9289 E-mail: jfitzger@milk.org 4 | October 2009 | MilkPRODUCER http://www.milk.org

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

The Milk Producer - October 2009
Contents
Editor's Notes
DFOVice-Chair's Message
Dairy Update
Industry Roundup
National Policy
DFC Promotion
Sinking In Stormy Seas
Processor Spotlight
Research
Applied Science
Ruminations
Markets
New 'N' Noted
Back Forty

The Milk Producer - October 2009