MARKETS
Innovation program pondered
T
he future of the Domestic Dairy Innovation Program (DDPIP) will be up for further discussion when the Canadian Milk Supply Management Committee (CMSMC) meets later in October. Provincial representatives to the CMSMC at a meeting last summer could not reach a consensus on continuing the program, which expired July 31. The DDPIP was aimed at boosting
overall milk demand. It let processors access milk to produce new and innovative dairy products outside of existing provincial plant supply allocations. The CMSMC renewed the program for one year in July 2010 after agreeing to share production rights associated with DDPIP contracts across the country, based on all-milk quota held by each province. Contracts authorized last year will still be honoured, but DDPIP requests
accepted in July 2011 are on hold until issues are resolved.
Fluid sales bounce back
At 80.9 million kilograms of butterfat for the 12 months ending in July, P5 fluid milk sales have definitively recovered from a significant decrease during the summer of 2010. The most recent level is the same as the number posted in July 2009, according to a recent P5 Quota Committee report.
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 WMP $76.35 P5 $74.32
2.45 2.4 SNF-BF Ratio 2.35 2.3 2.25 2.2 2.3515
Sept 2010 Oct 2010 Nov 2010 Dec 2010 Jan 2010 Feb 2011 Mar 2011 Apr 2011 May 2011 June 2011 July 2011 Aug 2011
2.15
P5 blend price WMP blend price
Ontario’s SNF-BF ratio Target SNF-BF ratio
44 | October 2011 | MilkPRODUCER
Sept 2010 Oct 2010 Nov 2010 Dec 2010 Jan 2011 Feb 2011 Mar 2011 Apr 2011 May 2011 June 2011 July 2011 Aug 2011
Table of Contents for the Digital Edition of The Milk Producer - October 2011