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How farmers are paid for their milk

Last Updated: August 1, 2012

Revenue for milk sales and costs for transportation and promotion costs are pooled among five provinces—Ontario, Quebec, New Brunswick, Nova Scotia, and Prince Edward Island-which have formed a regional pool known as the P5. This means producers in each of these five provinces all share one large market and also pay the same amount per hectolitre for transportation and promotion.

The components or solids in milk-butterfat, protein, and other solids (lactose and minerals)—and how they are used by processors determine milk value. The system of payment is referred to as a multiple component pricing payment system. DFO invoices processors according to the utilization of the raw milk components in each class and in each product.

Ontario milk producers are paid for their milk shipments on a monthly basis for the previous month’s milk deliveries.

 

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