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Dairy Farmers of Ontario Requirements

Last Updated: September 15, 2016

If a company receives a licence for the operation of a plant, DFO may begin selling milk to the company providing the company satisfies the requirements of the industry’s financial credit program. As milk is sold and delivered in advance of payment, DFO requires assurances that the company has sufficient equity to cover approximately two month’s worth of milk purchases.

Milk sold in Ontario/Canada is utilized and paid for based on a classified pricing system, i.e., Classes 1 to 5. Each product within a milk class is priced based on the kilograms of butterfat, protein and other solids that are utilized to manufacture the dairy product. For further details on milk classes and component prices, please refer to:

Plants requiring milk for the manufacture of products that fall within milk Classes 1 and 2 are supplied with milk on demand for the majority of their products with one exception. Effective November 1, 2011, the manufacturers of yogurt, beverage yogurt and yogurt shakes (excluding frozen yogurt products), were allotted a "Base Volume" which represents the volume of whole milk utilized in the manufacture of their yogurt products during the base setting period. Processors of yogurt products with a Base Volume are now entitled to receive their Base Volume as well as an annual growth allowance.

For more information, please refer to:

Plants requiring milk for the manufacture of products falling within milk classes 3 through 5 must possess plant supply quota (PSQ), before they can begin receiving milk from DFO.

 

 

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