MARKETS
Fall incentive days approved T
he P5 provincial boards have approved fall incentive days for four months starting in August. Two incentive days will be available in each of August, September and November, with three in October. The boards approved the incentive days as recommended by the P5 Quota Committee on a non-cumulative basis. The third day was added for October because it has traditionally been the fall’s lowest production month. Milk production has been stronger and appears to be on target to meet the four per cent quota increase approved during the past year. Most recently, the P5 increased quota by two per cent effective Dec. 1, and provided incentive days in December and January. Quota was increased to address longer term market requirements into next fall. The incentive days were implemented to address short-term market needs.
At the present time, the P5 committee is not recommending any further quota adjustments. However, it will continue to monitor markets and production, providing updates if adjustments are required.
Retail cheddar sales show some decline
Retail cheddar sales have shown some decline in recent months. According to the Canadian Dairy Commission’s January Market Bulletin, sales were
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.
80 78 Blend price in $/hL 76 74 72 70 WMP $77.21 P5 $75.28 SNF-BF Ratio
2.45 2.4 2.35 2.3 2.25 2.2 2.15 2.2715
Jan 2010 Feb 2011 Mar 2011 Apr 2011 May 2011 June 2011 July 2011 Aug 2011 Sep 2011 Oct 2011 Nov 2011 Dec 2011
P5 blend price WMP blend price
Ontario’s SNF-BF ratio Target SNF-BF ratio
40 | February 2012 | MilkPRODUCER
Jan 2011 Feb 2011 Mar 2011 Apr 2011 May 2011 June 2011 July 2011 Aug 2011 Sep 2011 Oct 2011 Nov 2011 Dec 2011
Table of Contents for the Digital Edition of The Milk Producer - February 2012