MARKETS
Quota increase expected C
ontinued strong market growth into the fall set the stage for an anticipated 0.3 per cent total quota increase for the P5 provinces starting in December. Both industrial and fluid markets had posted increased demand. In September, Canadian milk requirements hit 51.24 million litres. That was a 0.27 per cent increase from the previous month, and eclipsed the record for requirements set in August. Several factors have been contributing: • cream sales growth. This results in less skim-off from the fluid sector, requiring more whole milk to meet industrial requirements;
• more butterfat sold for use in ice cream; • increased yogurt and cheese sales; • growth in the further processing market. Also, the skid in P5 fluid milk sales that started last March has ended. After hitting a low point in July, sales started to increase. Cream sales have
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 2.4 SNF-BF Ratio
78 76 74 72 70 68
WMP $74.96 P5 $72.54
2.35 2.3 2.25 2.2 2.15 2.2775
Blend price in $/hL
Oct 2009 Nov 2009 Dec 2009 Jan 2010 Feb 2010 Mar 2010 Apr 2010 May 2010 June 2010 Aug 2010 Sept 2010 Oct 2010
P5 blend price WMP blend price
44 | December 2010 | MilkPRODUCER
Nov 2009 Dec 2009 Jan 2010 Feb 2010 Mar 2010 Apr 2010 May 2010 June 2010 July 2010 Aug 2010 Sept 2010 Oct 2010
Ontario’s SNF-BF ratio Target SNF-BF ratio
Table of Contents for the Digital Edition of The Milk Producer - December 2010