MARKETS
Chocolate milk market pondered
rowing concerns chocolate dairy beverages are displacing chocolate milk have prompted P5 provincial boards to look at expanding the current chocolate, flavoured milk and shakes promotion program. In 2007, DFO, followed by other P5 provincial boards, launched a promotion program to expand the market for chocolate and flavoured milks and shakes. The goal is to improve
G
positioning of these milks versus competing beverages in key singleserve markets. “There are concerns about the presence of chocolate dairy beverages in the market and the ramifications this has for chocolate milk,” says Phil Cairns, Dairy Farmers of Ontario’s (DFO) senior policy advisor. “In some supermarkets in Ontario, chocolate dairy beverages have completely replaced chocolate milk in the
dairy case … consumers don’t even have a choice.” P5 chairs agreed in late April to look at expanding the program to include larger chocolate milk packages. Since Feb. 1, only chocolate and flavoured milks packaged in containers less than 750-millilitres have been eligible for promotion credits under the program. “Processors who had been using buttermilk and whey in their formu-
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 $72.12 WMP $74.52
2.4 SNF-BF Ratio 2.35 2.3 2.25 2.2 2.15 2.2851
Blend price in $/hL
Mar 2009 April 2009 May 2009 June 2009 July 2009 Aug 2009 Sept 2009 Oct 2009 Nov 2009 Dec 2009 Jan 2010 Feb 2010
P5 blend price
WMP blend price
Ontario’s SNF-BF ratio
40 | May 2010 | MilkPRODUCER
Apr 2009 May 2009 June 2009 July 2009 Aug 2009 Sep 2009 Oct 2009 Nov 2009 Dec 2009 Jan 2010 Feb 2010 Mar 2010
Target SNF-BF ratio
Table of Contents for the Digital Edition of Milk Producer - May 2010