MARKETS
Milk price takes modest rise
T
he blend price will increase about
40 cents per hectolitre Feb. 1 for
P5 producers when adjustments
are made to fluid and industrial milk
prices.
The Canadian Dairy Commission
mid-December announced increased
support prices for butter and skim
milk powder. They translate into an
industrial milk price increase of 1.5
per cent or $1.14 per hL for produc-
ers nationally on Feb. 1.
Fluid prices, meanwhile, will go down
in the P5 pool by an average 67 cents
per hL Feb. 1, or 0.7 per cent, as indicated
by the new national fluid pricing formula.
The P5 and Western Pools agreed
to the new formula last October.
The new formula is based on a
50-50-weighting of the consumer
price index and the national cost of
production as defined for industrial
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.
70
72
74
76
78
80
WMP
$77.01
P5
$75.04
2.15
2.2
2.25
2.3
2.35
2.4
2.45
milk pricing purposes.
An advance price increase last August
put the fluid price above the level
indicated by the new formula.
Production costs rise
“Our data show the cost of producing
milk in Canada has increased by
2.2 per cent over the last 12 months”
says Randy Williamson, CDC chairman.
“In particular, the cost of feed
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.
2.2596
P5 blend price
WMP blend price
40 | January 2012 | MilkPRODUCER
Ontario’s SNF-BF ratio
Target SNF-BF ratio
Blend price in $/hL
Dec 2010
Jan 2010
Feb 2011
Mar 2011
Apr 2011
May 2011
June 2011
July 2011
Aug 2011
Sep 2011
Oct 2011
Nov 2011
SNF-BF Ratio
Dec 2010
Jan 2011
Feb 2011
Mar 2011
Apr 2011
May 2011
June 2011
July 2011
Aug 2011
Sep 2011
Oct 2011
Nov 2011
Table of Contents for the Digital Edition of The Milk Producer - January 2012