Milk Producer - May 2010 - (Page 8)

PROVINCIALPERSPECTIVES By Harold MacNevin Maritime province airs quota harmonization concerns D uring the last three years, Dairy farmers of Prince tionate milk supply to all processors. This would not happen Edward Island (DFPEI) and the other P5 provinces have in a small province with a relatively large MMO. Producers been developing a producer quota harmonization model. pay to transport milk from the farm to the processing plant. Some provinces have had to compromise as we move We must keep our regional plants viable. Adopting policies toward common quota policies across the pool. Each has had within the pool that could harm those processors is not a unique challenges to address before adopting these measures. wise move. DFPEI entered the negotiations committed to achieving fair DFPEI suggested adjusting MMOs to ensure equal access policies for all involved. Current policies support all five to milk for processors across the pool. Processors in central provinces sharing milk production for the P5 Canada did not favour this approach. Until the P5 or the market. quota committee can find a solution, DFPEI will not A P5 quota committee was created to recjoin P5 quota harmonization. ommend adjustments to quota issued to proAnother issue is the proposed ducers, which may be more or less than current 0.5 per cent quota reduction alloprovincial allocations. The committee also detercated to P.E.I. as the cost of havmines production incentives needed to fill market ing quota leasing. P.E.I. producers demand and addresses other policy want quota leasing as a production issues. management tool, but do not When the time came to harbelieve they should pay a penalmonize, only three provinces ty for having it. Limited quota Dairy Farmers of Prince Edward agreed to common policies— availability on provincial Island is committed to achieving Ontario, Quebec and Nova exchanges and increased biofair harmonized quota policies for all involved. Scotia, better known as P3E. security risks from moving cattle DFPEI cannot join the harmobetween farms suggests leasing quota nized group until outstanding makes more sense. issues are addressed. Reducing a small province’s quota limits its ability to One major obstacle is the possibility a small fill its market. Eight of 10 provinces now have some province, such as P.E.I., could experience periods of method of selling production credits or leasing quota as part under-production while other regions in the pool fill of their production and quota management options. DFPEI the market. This same province would be unable to issue believes this simple, effective tool should be available to all additional quota or add incentives to increase production, but P5 producers. must still fill its milk movement obligation (MMO). This We are open to joining our pool partners in quota policy means its processors could experience a milk supply shortage, harmonization, but not at any cost. while those in other provinces would not. P.E.I. is no bigger than some Quebec or Ontario counties, Harold MacNevin is chairman of Dairy but if one of those regions experienced low production, the Farmers of Prince Edward Island. rest of the province, and the pool, would ensure a propor8 | May 2010 | MilkPRODUCER

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

Milk Producer - May 2010
Contents
Editor's Note
DFO Chair's Message
Provincial Perspectives
Dairy Update
National Policy
Farm Finance
Retailers Spotlight
DFC Promotion
The Future Arrives
Farm Business
Research
Applied Science
Ruminations
Markets
New 'N" Noted
Back Forty

Milk Producer - May 2010