MARKETS
Strong markets spur increase T
he one per cent quota increase that took effect for P5 milk producers April 1 was in response to continued strong markets and slightly lower production levels than anticipated. The increases reflect current market conditions and forecasts for the coming months. A report from the P5 Quota Committee, recommending the quota increase, says it sends a strong signal for more production when added to the previous one per cent in February. The increases are non-saleable quota in all five provinces—Ontario, Quebec, Nova Scotia, New Brunswick and Prince Edward Island. P5 fluid markets have been trending positively since last July. As the P5 Quota Committee notes, sales measured in kilograms of butterfat for
Markets remain strong
the 12-month period ending in January were slightly higher than the period ending in December. It was the first month since July that fluid sales were almost equal from one month to another. The P5 report also shows 2.085 million kg of butterfat associated with the Domestic Dairy Product Innovation Program (DDPIP) in January this year—growth of 32 per cent since January 2010. New data indi-
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.
78 76 Blend price in $/hL 74 72 70 68 P5 $73.22 WMP $75.52
2.45 2.4 SNF-BF Ratio 2.35 2.3 2.25 2.2 2.2541
Feb 2010 Mar 2010 Apr 2010 May 2010 June 2010 Aug 2010 Sept 2010 Oct 2010 Nov 2010 Dec 2010 Jan 2011 Feb 2011
2.15
P5 blend price WMP blend price
Ontario’s SNF-BF ratio Target SNF-BF ratio
44 | April 2011 | MilkPRODUCER
Mar 2010 Apr 2010 May 2010 June 2010 July 2010 Aug 2010 Sept 2010 Oct 2010 Nov 2010 Dec 2010 Jan 2011 Feb 2011
Table of Contents for the Digital Edition of The Milk Producer - April 2011