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Industry News

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Updated: June 22, 2018
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P5 Board Announcement

June 22, 2018

While there is still growth in market demand, production is above current and projected market demand. The large number of underproduction credits held by P5 producers could increase this production and market imbalance.

As a result of high production levels in relation to demand, the May butter stocks are at 43,000 tonnes, which is well above the 35,000 tonne target.

For these reasons, the P5 Boards are taking the following measures Effective July 1, 2018:

  1. Reduce quota issued to all producers by 1.5%. Additionally provinces will either further reduce the quota issuance for all producers by 2.0% OR limit production credit day usage to 1 day / month; and
  2. Eliminate previously announced Fall 2018 incentive days for conventional producers only; and
  3. Implement an over quota penalty of $20 / hl to be applied on production over +10 days in Ontario and the Maritimes.
Measure Québec PEI NS NB Ontario
Quota reduction effective July 1, 2018 3.5 % 3.5 % 3.5 % 3.5 % 1.5 %
Incentive days
(Aug to Nov)
0-0-0-0 0-0-0-0 0-0-0-0 0-0-0-0 0-0-0-0

Ontario will implement the following measures for all producers:

  1. Effective July 1, 2018, temporarily limit the number of production credit day usage to 1 day / month.  This measure will be reviewed periodically by the P5 Quota committee and the P5 Boards.
  2. Implement an over quota penalty of $20 / hl to be applied on production over +10 days and if production credit usage exceeds 1 day / month.

 

Quebec is also committed to work towards the regulatory changes to implement measures 4. and 5. above no later than December 1st, 2018. The Maritime Provinces will evaluate implementation of measures 4. and 5. When a province implements the monthly production credit day limitation policy and the over quota penalty, there will be an offsetting quota adjustment.

The P5 Quota Committee considers that a 1 day / month production credit limitation is equivalent to a 2% quota reduction for all P5 provinces. Notwithstanding the temporary variations in this decision, the P5 Boards remain committed to a harmonized quota policy and a common quota issuance level across the pool.

Organic producers will receive incentive days as shown in the table below.

The P5 Quota Committee will continue to monitor milk production and the market evolution for the months to come and will determine if further measures will be required.

Month/Mois Conventional / Conventionnel Organic / Biologique
July/juillet 2018 0 4
August/aout 2018 0 5
September/septembre 2018 0 6
October/octobre 2018 0 6
November/novembre 2018 0 5
December/ décembre 2018 0 4
January/janvier 2019 0 4
February/février 2019 0 4
March/mars 2019 0 4

 

Response to recent comment regarding pricing

June 18, 2018

Canada's system works.

Recent statements that it's broken and Class 7 hurts trade are wrong.

Class 7 is a domestic program designed to position Canadian dairy ingredients in a competitive position for domestic use. It does not block or stop any imports.

Since its introduction, the Canadian dairy industry has seen more than $1/2 billion in investments, new growth and economic activity.

This message has also been posted on DFO’s social media channels on Twitter @DairyOntario and @OntarioMilk, and Facebook at /OntarioDairy.

Frequently asked questions about trade

June 11, 2018

Q: What is the current situation?

The Canadian dairy system is known for its disciplined approach in supplying the domestic market. It does not contribute to world milk surpluses, or interfere in developing countries’ dairy industries by dumping excess milk into their markets.

Canada and the United States share one of the largest trading relationships in the world. Canada is the largest market for the U.S., with US$283 billion worth of goods exported to Canada in 2017—more than China, Japan and the United Kingdom combined. Canada is the number one export destination for most American states, and cross-border trade and investment support nearly nine million jobs in the U.S.

Canada and the United States share one of the largest trading relationships in the world. Canada is the largest market for the U.S., with US$283 billion worth of goods exported to Canada in 2017—more than China, Japan and the United Kingdom combined.

Read more answers to frequently asked questions here 

Read more Canadian dairy industry facts here

Canadians stand behind supply management

June 11, 2018

Canadian farmers point out that despite the tariffs that protect them, imports make up 10 per cent of the country’s dairy consumption. By contrast, the U.S. restricts dairy imports to three per cent of domestic consumption.

By John Barber

June 9, 2018

The Guardian

Read more..

Canada is the top U.S. export market

June 11, 2018

According to data from the U.S. trade representative, Canada purchased more than $340 billion in American goods and services in 2017.

By Justin Worland

June 10, 2018

Time

Read more.. 

Ontario dairy farmers congratulate Doug Ford

June 8, 2018

On behalf of Ontario’s dairy farmers, we congratulate Doug Ford of the Ontario PC Party on his victory. Ontario’s dairy farmers are pleased to see that Ontario voters have elected a leader who is committed to supporting the benefits to Canadian consumers and farmers that come from our strong Canadian dairy system. The PC Party – and all other major parties – have long been supporters of our farmers.  We are pleased this will continue.  We look forward to continuing to working collaboratively with government.

Dairy Farmers of Ontario represents the largest sector in Ontario’s agricultural economy with more than 3570 dairy farms, 11,000 farm families, and 72 processors and are a growing part of the economy with over 15% growth in the last two years.

We contribute over $1.3 billion to Ontario’s economy each year

As the incoming Premier of Ontario, you have the power to continue the Ontario government’s strong history of standing up for Ontario’s dairy farmers by supporting supply management—a strong Canadian system for Canadian farmers, Canadian consumers, Canadian processors and Canadian quality. You can help Canadian taxpayers by maintaining supply management—a system that works for all Canadians. This is why federal and provincial political parties have consistently supported our supply management system.

Ontario’s and Canada’s dairy sectors contribute to the economic backbone of rural communities across the country. Not only does Canada’s dairy system provide farmers with fair wages for their labour, it offers continued and sustainable growth and hundreds of millions of dollars in new farm and processor investments.

Coca-Cola Canada

June 5, 2018

Coca-Cola Canada to introduce fairlife to Canadian market

fairlife™ ultrafiltered milk launching in Canada by the end of 2018

TORONTO, Ontario – June 5, 2018 – Coca-Cola Canada is excited to announce it is investing $85 million to build a new production facility in Peterborough, Ont. The facility will provide new production capabilities starting with fairlife ultrafiltered milk, a lactose-free milk containing nine essential nutrients, with 50 per cent more protein and 50 per cent less sugar than traditional milk. Coca-Cola Canada worked with Dairy Farmers of Ontario to bring fairlife to Canada, its first international market. 

The new facility, scheduled to begin operations in the first quarter of 2020, will produce fairlife ultrafiltered milk in fat-free, 2% white, 2% chocolate and whole (3.25%) white in 1.5 litre polyethylene terephthalate (PET) plastic bottles. Additionally, 2% white and 2% chocolate will be available in 240-millilitre PET plastic bottles.

“This announcement is a significant step in our journey to be a total beverage company. We are listening to consumers and evolving our business strategy to respond,” says Shane Grant, president of Coca-Cola Company’s Canadian business unit. “We have launched an unprecedented number of new products into the Canadian market over the last 18 months, including smaller package formats and new brands, such as Gold Peak, smartwater sparkling, Glaceau fruitwater, vitaminwater active, Peace Tea and Powerade Zero. Adding fairlife ultrafiltered milk to our portfolio means we can offer Canadians more of what they are looking for—products with less sugar, more functional benefits and more natural ingredients.”

The new facility will create 35 jobs and will drive incremental benefits within the economy, from the development and construction of the facility to ongoing resources and suppliers needed to support daily operations. The plant will be supplied with milk from dairy farms in Ontario and will bring new innovation to the Canadian dairy industry. 

“Dairy farmers in Ontario look forward to working with processors, such as Coca-Cola Canada and fairlife, to bring further innovation to our growing Canadian dairy industry, and are excited at the opportunity fairlife presents to expand the dairy category and offer more variety to consumers,” says Graham Lloyd, Dairy Farmers of Ontario general manager and chief executive officer. “Canadian consumers value high-quality milk and animal care standards available in Ontario and throughout Canada, which is why Canada is an ideal market to launch fairlife. Canada’s dairy system continues to contribute to the Canadian economy by attracting millions of dollars in processor investments and offering continued and stable growth.”

“Canada’s agriculture and agri-food industry generates more than $100 billion of our gross domestic product, employing more Canadians than any other manufacturing industry in the country,” says Lawrence MacAulay, minister of Agriculture and Agri-Food Canada. “This new plant in Peterborough will help create jobs, encourage innovation and foster new market opportunities in Ontario and across the country—tapping into the growth potential of Canada’s agriculture and food industry.”

“I welcome today’s announcement by Coca-Cola. This investment represents a significant vote of confidence in a 70-year strong partnership between Coca-Cola, Minute Maid and our region’s skilled workers,” says Maryam Monsef, member of Parliament for Peterborough-Kawartha. “The renewal of this important relationship will create 35 new, well-paying jobs and continue to support 100 good, middle-class jobs at the Peterborough Minute Maid plant. This investment in our community further solidifiesPeterborough-Kawartha as a regional leader in innovation and economic development.”

Read more..

Reminder: Register for milk quality meeting

May 30, 2018

Early bird pricing now extended to June 12

Hosted by the Ontario Association of Bovine Practitioners (OABP) and Dairy Farmers of Ontario, the National Mastitis Council’s (NMC) regional meeting will take place June 20 to 22 in Guelph, Ont.

The meeting will bring dairy producers, veterinarians and advisers together with invited experts to share experiences and gain knowledge about milk quality issues.

The conference will provide producers a chance to gain practical skills that can be applied to existing problems, taking Ontario’s milk quality to a higher level. Seminars will include a start-up robot milking workshop, DairyComp305 workshop, numerous speakers and more.

For the full conference schedule, or to register, visit www.oabp.ca.

Minister MacAulay announces appointment to the Canadian Dairy Commission

May 7, 2018

 On May 3, the Canadian Dairy Commission (CDC) announced Serge Riendeau has been chosen as its new chief executive officer (CEO), effective May 14, 2018. Dairy Farmers of Ontario (DFO) congratulates Riendeau on his new position. DFO looks forward to continuing to work with the CDC to achieve the continued growth experienced over the past several years in the Canadian dairy industry. In this regard, DFO also takes this opportunity to thank Jacques Laforge, the outgoing CEO, for all of his hard work, dedication and contribution to Canadian dairy.

 

Read the press release here

Canadians continue to strongly support the Canadian dairy sector

May 7, 2018

A new Ipsos poll has found the majority of Canadians want the federal government to do more to protect Canada’s dairy industry in the ongoing renegotiations of the North American Free Trade Agreement.

By Kelsey Johnson

May 3, 2018

iPolitics

Read more

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