The Milk Producer - May 2011 - (Page 4)

EDITOR’SNOTES By Bill Dimmick Flat-line dairy graph As food price volatility scores headlines at home and abroad, stability remains our watchword I clothe and house your family on the equivalent of $2 per day, March brought you some relief. The Food Price Index dropped a bit. Compiled by the Food and Agriculture Organization (FAO) of the United Nations, the index charts monthly changes in the international prices of a basket of food commodities. After peaking at an all-time high in February, prices retreated a little in March, but were still 37 per cent higher than they were the same month a year earlier. World price fluctuations have little impact on the Canadian dairy industry, although rising international markets can add modest increases to the blend price from higher special class prices. Among the estimated two billion or more people in the world subsisting on $2 a day or less, however, small changes can prove dramatic and traumatic. When that bowl of rice that once cost 50 cents now costs 75 cents, you and your family are likely to go hungry. Here in Canada, we’re fortunate to live in a land of plenty where most families can afford decent food and shelter. Nevertheless, headlines a few months back warned of higher food prices heading our way. THE I PRO U R TH E MI LK PRODUCER is published monthly RODU e m nthl hly by Dairy Farmers of Ontar o, 6780 Campobello Dai Farmers of Onta airy r tari b Road Mississauga, Ontario, Road, Mississauga, Ontar L5N 2L8 ad, ssis a t EDITOR: ill D m ick EDITOR: Bill Dimmick ITOR ASSISTAN EDIT R ASSISTANT EDITOR: Sharon Laidlaw SISTANT ITOR ai law Co-ordinated by Communications Co-ordinated by Co -ordinat s and Planning Div and Planning Di ision, n Bill itch Bill Mitch Assi tant Director. chell, ssis Chan Chan of address notices should be sent to: ange u be sent to: THE MILK PRODUCER 6780 Campobello Road, Mississauga, Ontario L5N 2L8. s 8 Subsc pt Subscription rate : $26.88 for one year, $49.28 bscr ates ye $49.28 ear, 9 for two years and $67.20 for three years in o w year n r e yea in ears Canada (includes HST), $36 per year in the nada (includes l s U.S. $36 per year overseas. Single copy: $2.50. U.S., $36 per year overs S., r vers Make cheques payab Make cheques payable to Dairy Farmers of heque able iry ir Ontario. Ontario. tari In its release of the Food Price Index for March, the FAO noted the decrease after eight months of continuous price spikes. David Hallam, director of the FAO’s trade and market division called it a “welcome respite.” Major decreases were from oils, sugar and cereals. Dairy countered the small downward dip, increasing 1.9 per cent from February, and 37 per cent above the March 2010 level. An FAO graph, reproduced below, gives you an idea of the trends over the past year. Note the price volatility of these internationally traded commodities. I wondered whether I could graph retail price changes of dairy products in Canada for comparison. I found Statistics Canada figures showing the price of four litres of 2 per cent milk from 2006 to 2010 in major Canadian cities. Producing such a graph would have resulted in nearly a flat line. The five-year variation in Toronto, for example, amounts to 25 cents. It suggests Canadian consumers continue to benefit from market stability provided by supply management. Canada Post Publications Mail Sales Product d tions Mai Sale P oduc a e uct Agreement No. 40063866. Return postage 0063 66. Retu postage 3866 turn o 38 guaranteed. Circulation: 10,000. io 0,000 o 000. ISSN 0030-3038. SS Prin Print d in Canada. inte n nada. a National Nation Marketing Manager tion eting Manager ana James Fitz James Fitzgerald tzg 154 Jean 154 Jean Street, n RR 5, Strat ord, Ontario N5A 6S6 5, Stra ratf Toll-fre Toll-free advertisers only: 1-888-460-6212 ll-free Phone (519) 393-5292 Fax (519) 393-5293 5292 52 51 29 E-m E-mail: milkjim47@quadro.net @quadro n ro.n Opinions expressed herein are those of the ed herein are thos f the erei hose author and/or editor and do not necessarily ditor and not necessarily e aril reﬂect the opinion or policies of Dairy Farmers n or policies of Dair Farmers lici iry of of Ontario. Publication of advertisements does P lication dvert sements does erti ment not constitute endor stitu ndor tute orsement or approval by The or t The Milk Producer or Dairy Farmers of Ontario of f products or services advertised. The Milk Producer welcomes letters to the i oduce cer comes et e editor about magazine content. bout g bo maga ine content. t t. Phone: (905) 821-8970 ( 0 821-8970 1-89 Fax: (905) 821-3160 (905) 821-3160 1-31 E-mail: bdimmick@milk.org bdimmick milk. immick@m k.o slaidlaw@mil or slaidlaw@milk.org w ilk org Website: Go to publications o at www.milk.org 4 | May 2011 | MilkPRODUCER http://www.fsc.org http://www.milk.org http://www.fsc.org

Table of Contents for the Digital Edition of The Milk Producer - May 2011

The Milk Producer - May 2011
Contents
Editor's Notes
DFO Chair's Message
Provincial Perspectives
Dairy Update
Farm Finance
DFC Promotion
Research
Ruminations
Applied Science
Markets
New 'N' Noted
Back Forty

The Milk Producer - May 2011