Retail milk prices in USA and Canada

[chuckChuck]

The USDA publishes a report on retail milk prices from numerous cities. Prices are quite variable.

https://www.ams.usda.gov/sites/default/files/media/RetailMilkPrices2018.pdf

The simple average for January to August 2018 is $3.19 per US gallon which is $4.21 CAD for 3.78 Litres which is $1.11 CAD per litre. Walmart Canada's on line price is a $1.18 per litre. A whopping 7 Cents per litre cheaper in the US!

One Canadian store on one day vs numerous locations and stores US wide over 8 months does not tell the whole story.

But I don't expect getting rid of supply management will lower Canadian prices because our retail market is different, our population is smaller, US farmers and processors are often on a larger scale than Canadian versions which gives them economies of scale.

Our goal is to supply our own market with quality product and make sure farmers make a decent living in an industry that cannot afford large swings in farm gate prices or market share. When you milk cows you cant just decide to fill the barn with something else in the spring. This is a perishable product that needs a stable market.

The US has a problem with oversupply and low prices in some states. We do not have to solve their over supply problem with additional Canadian market access. We are not their problem. Especially when they have their own subsidy and support programs which are paid for with tax payers money.

Trump is just playing politics with the mid term elections coming up. Wisconsin supported Trump.
He knows bugger all about the dairy industry.

[chuckChuck]

I brought this post back from a previous thread because after this was posted, the thread went very silent.

Is this because the evidence that US prices are not significantly or universally cheaper than Canada, puts an end to the argument that supply management costs Canadian consumers much more?

As I mentioned this is not a comprehensive analysis using only Walmart pricing online in Canada from one day. But what is remarkable is that many US retail markets are not lower cost than Canada and some are even higher priced.

[walterm]

Price of retail will not go down. Producer returns will but that will be absorbed by processor and retail. Just like gas.

[grassfarmer]

Price of retail will not go down. Producer returns will but that will be absorbed by processor and retail. Just like gas.

....or any other farm produce sold in Canada that isn't under SM.

[malleefarmer]

milk here $1 per litre

[AlbertaFarmer5]

So, if being perishable is the only factor that makes milk require SM. Then beef producers also need SM, can't store a calf very long if the market is saturated at that time. And if you do, it costs a lot. Even beef itself costs a lot to store, and has a finite lifespan in storage.

[grassfarmer]

So, if being perishable is the only factor that makes milk require SM. Then beef producers also need SM, can't store a calf very long if the market is saturated at that time. And if you do, it costs a lot. Even beef itself costs a lot to store, and has a finite lifespan in storage.

Yeah, you can though .... store a calf for months if need be. Milk has to move off farm every day of the year and you can't afford to have a saturated market for milk where the system simply can't take your day's production. When that happens - or when road conditions don't permit vehicles to collect the milk it gets poured down the drain to make room for the next day's. That's why milk is different.

[RD414]

Guess I'd tell them to build a another tank. Problem for me is ,like you are to most on here, it is a n irritant to the US and it is disrupting trade. But guys like you and David orchard don't like trade so you don't care.

[agboy]

[again and same old story S-M put only a few big controlled operators at cost plus
guaranteed profit !
this is why and hard to let go !
price of cheese about half across the bourder! same for butter about 1/3 less and
1 % milk o.84 cent /liter.
chicken so cheap again 1/3 less ! not counting our time and gas, of course fill up there and
large saving on totall package
this about prises, what about usa takes all our free enterpice beef ,hogs , grain ; our dollar is in favour for them . off course.
S-M is costing taxpayers big money ! in Canada
most of milk and chicken quota was given to them ! why is cost of quota zo extreme high for milk and chicken , because no risk cost plus and guaranteed profit very simple farming .
it is not fair every dairy and chicken operation can feed cattle or go in hogs and free grain
farming , no million of dollars for this open free enterprice
do we loose NAFTA BECAUSE OF S-M IN CANADA KILL IT FOR GOOD ! LIKE BIG COUNTRY LIKE EUROPA IS DOING SO WELL AFTER GOT RID OFF THIS QUOTA SM

[grassfarmer]

Europe isn't a country. They never had SM - they had production quotas only which is a totally different thing. And it's been a mess since their quota system was removed. The same kind of chaotic, money losing, livelihood losing mess that the US dairy sector is.

[fjlip]

Or every other type of grain, beef, hog agriculture...nice one to remind us all

[grassfarmer]

Or every other type of grain, beef, hog agriculture...nice one to remind us all

Not quite in the same boat dairy farmers are when milk prices go into free fall. Ranchers got a taste of it with BSE for the first few years with the price collapse. Hog producers are more familiar with the boom and bust cycles, I was reading they are currently losing $60 on every hog they produce. If grain farmers suddenly experienced wheat going to $2 and canola to $6 you'd have some idea of what the milk price collapse in Europe was like.