Milk Producer - April 2010 - (Page 40)

MARKETS Innovation plan debated D iscussions continue at the national level about renewing the Domestic Dairy Product Innovation Program (DDPIP). Aimed at boosting overall milk demand, the DDPIP lets processors access milk to produce new and innovative dairy products outside of existing provincial plant supply allocations. The program must be renewed every five years, and the current Canadian Milk Supply Management Committee (CMSMC) approval expires July 31. Approval requires consensus agreement, but there is concern not all 10 provinces will support it. Ontario has been at the forefront of provinces urging support. The DDPIP does not affect existing provincial plant supply allocation systems for milk or existing product markets. Each approved DDPIP project is authorized to receive a specific quantity of milk for five years. Successful participants pay the prevailing applicable provincial price for the milk or milk components they use under the program. An application must meet specific criteria to be eligible. The product must be wholly or partially made with milk, not contain any imported dairy ingredients, introduce significantly new or innovative factors, and have the probability of leading to increased milk consumption. The Dairy Farmers of Ontario (DFO) Ethnic Marketing Program has been using the DDPIP to help processors launch new products that tap previously unfilled markets. In DFO’s fiscal year ending Oct. 31, 2009, 12 companies obtained 44 DDPIP approvals. Ontario now has 52 active DDPIP projects utilizing 23 million litres of milk annually. Another 14 new applications have been lined up for the next round of approvals. Butter stock proposal vote scheduled The CMSMC is scheduled to vote on a proposal at its April meeting to consider butter stock levels when adjusting market sharing quota (MSQ). The Canadian Dairy Commission (CDC) would be mandated to adjust MSQ as needed for growth allowance and butter stock management 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 78 76 74 72 70 68 P5 $71.95 WMP $74.35 2.4 SNF-BF Ratio 2.35 2.3 2.25 2.2 2.15 2.2772 Blend price in $/hL Feb 2009 Mar 2009 April 2009 May 2009 June 2009 July 2009 Aug 2009 Sept 2009 Oct 2009 Nov 2009 Dec 2009 Jan 2010 P5 blend price WMP blend price Ontario’s SNF-BF ratio 40 | April 2010 | MilkPRODUCER Mar 2009 Apr 2009 May 2009 June 2009 July 2009 Aug 2009 Sep 2009 Oct 2009 Nov 2009 Dec 2009 Jan 2010 Feb 2010 Target SNF-BF ratio

Table of Contents for the Digital Edition of Milk Producer - April 2010

Milk Producer - April 2010
Contents
Editor's Notes
DFO Chair's Message
Dairy Update
DFC Policy
Industry Roundup
DFC Promotion
Industry Initiative
Research
Applied Science
Ruminations
Markets
New 'N' Noted
Back Forty

Milk Producer - April 2010