November 5, 2018 - Quota holding dairy farmers can breathe a bit of a sigh of relief.
While butter stocks are still expected to be 10,000 tonnes higher than ideal, the P5 Quota committee did not pile another quota cut on top of the bad news from the USMCA when it met last week.
A release on the Dairy Farmers of Ontario web-site explains “The CDC December 2018 butter stocks level forecast has been revised downward from 32 000 tonnes to 27 000 tonnes, a level that remains above the 17 000 tonnes target level for the month of December.”
While “The P5 Quota Committee will continue to monitor closely milk production and the market evolution and will determine if further measures will be required,” it did not recommend further reducing quota last week.
Ontario producers lost 1.5 per cent of their quota in June and their credit days were reduced to one per month.
The committee did note though that “there is still growth in market demand and P5 production is forecasted to be lower than last year’s level, butter stocks are continuing to be relatively high for this time of the year.”