Supply Management

[Guest]

FMG, just bought some cheese and yogurt ??????????
goes up everytime you go in the store
anyone who thinks they aren't supporting these farmers so they can bid up price of land, and hire professional activists , has rocks in their head
its like they have a free rein to charge whatever they want

[ajl]

In related news, after three years of low prices paid to the producer, US dairy prices have risen 20% over the past couple of months. Apparently it is possible to have a functional dairy industry without government riding shotgun all the time.

[grassfarmer]

FMG, just bought some cheese and yogurt ??????????
goes up everytime you go in the store
anyone who thinks they aren't supporting these farmers so they can bid up price of land, and hire professional activists , has rocks in their head
its like they have a free rein to charge whatever they want

Where are the prices increases going though Case? into the pocket of the dairy farmer, the processor or the retailer? I suspect the latter two. Turning into just the same as every other food product farmers produce - something we gets cents on the dollar for while the Agri-food sector flourishes. You realise that milk, or milk products that are now being imported aren't subject to the supply management system? So a processor or retailer is able to buy really cheap product in the US and retail it in Canada for a price as high or higher than regular CDN prices. Imagine the positive margin stretch that gives the processor or retailer. No wonder these people lobbied so hard to break the SM system. Who is better off as a result? Neither the consumer or the dairy farmer. How predictable.

[farming101]

Have imports of milk and milk products into Canada increased a lot lately?

[furrowtickler]

Where are the prices increases going though Case? into the pocket of the dairy farmer, the processor or the retailer? I suspect the latter two. Turning into just the same as every other food product farmers produce - something we gets cents on the dollar for while the Agri-food sector flourishes. You realise that milk, or milk products that are now being imported aren't subject to the supply management system? So a processor or retailer is able to buy really cheap product in the US and retail it in Canada for a price as high or higher than regular CDN prices. Imagine the positive margin stretch that gives the processor or retailer. No wonder these people lobbied so hard to break the SM system. Who is better off as a result? Neither the consumer or the dairy farmer. How predictable.

Hutterite colony’s sure seem to be suffering. Dairy is their big driver .

[grassfarmer]

Hutterite colony’s sure seem to be suffering. Dairy is their big driver .

Have they lots of dairy cows round you? The ones I've known haven't been big into dairy - one had about 60 cows. Most here don't have dairy cattle, some have no livestock at all in fact. I suspect the Hutterites will own a far bigger percentage of the other supply managed products - the poultry side - than they do dairy. They also seem to be about the only people still in hogs other than the Corporate operations.

[Daylate]

Maybe we're all too entitled to deal with livestock anymore. Im only 3 years out of beef so enjoying the more manageable hours of 100% grain. Not less, or easier. Im babysitting my dryer which feels like a never ending calving season. But im not willing to tell one grass roots ag industry that they are less worthy then the next. If dairy is the gravy train, then find a way to jump on board instead of feeding the over priced fear mongering. If the CWB actually did what they said they were doing for half a century, they would have had us recieving a premium for "at par" product so lets keep the good fight aimed in the right direction.

[farming101]

Where are the prices increases going though Case? into the pocket of the dairy farmer, the processor or the retailer? I suspect the latter two. Turning into just the same as every other food product farmers produce - something we gets cents on the dollar for while the Agri-food sector flourishes. You realise that milk, or milk products that are now being imported aren't subject to the supply management system? So a processor or retailer is able to buy really cheap product in the US and retail it in Canada for a price as high or higher than regular CDN prices. Imagine the positive margin stretch that gives the processor or retailer. No wonder these people lobbied so hard to break the SM system. Who is better off as a result? Neither the consumer or the dairy farmer. How predictable.

Have imports of milk and milk products into Canada increased a lot lately?

[grassfarmer]

Have imports of milk and milk products into Canada increased a lot lately?

Yes, between January 2018 and January 2019 they rose about 18% equating to around 22,000,000 kgs of product.

[farming101]

Yes, between January 2018 and January 2019 they rose about 18% equating to around 22,000,000 kgs of product.

Thanks. I assume that is comparing to the Jan 17 to Jan 18 period?

[grassfarmer]

Thanks. I assume that is comparing to the Jan 17 to Jan 18 period?

Yes it is.

[Integrity_Farmer]

The reason for the 1.75 billion to dairy producers is to compensate them for the loss of quota production. The reason for this loss in quota is he horrendous trade deals that were signed by Trudeau and Freeland The European CETA and the TPP have now given Europe and the US 20% access to Canadian dairy market. Dairy farmers did not or do not support the sell out of their industry by Trudeau. Why the anger at other farmers in our country and dairy farmers in Alberta and Sask. All farmers are victims here.

[Integrity_Farmer]

Dairy price study finds Canadians don't pay more for milk

The study, published last week by a new Ottawa-based trade firm called Export Action Global, found Canadians don’t pay more for comparable dairy products than consumers in countries with deregulated dairy industries.

“Milk prices in Canada are lower on average than in Australia, New Zealand, and the U.S. Canadians currently pay less on average than Americans for butter, yogurt, and cheese,” reads the report. http://www.realagriculture.com/.../dairy-price-study.../

[AlbertaFarmer5]

Dairy price study finds Canadians don't pay more for milk

The study, published last week by a new Ottawa-based trade firm called Export Action Global, found Canadians don’t pay more for comparable dairy products than consumers in countries with deregulated dairy industries.

“Milk prices in Canada are lower on average than in Australia, New Zealand, and the U.S. Canadians currently pay less on average than Americans for butter, yogurt, and cheese,” reads the report. http://www.realagriculture.com/.../dairy-price-study.../

There goes grassfarmers idea that the processors and retailers are taking all the profit. If Canadian producers are being paid more than their US counterparts, and grocery store prices are lower than US, then the only explanation is that the middle men are taking a smaller piece of the pie?

[grassfarmer]

There goes grassfarmers idea that the processors and retailers are taking all the profit. If Canadian producers are being paid more than their US counterparts, and grocery store prices are lower than US, then the only explanation is that the middle men are taking a smaller piece of the pie?

On the contrary AF5 it validates everything I've ever argued about supply managed dairy on here. Proof that it is the best dairy system in the world - providing some of the cheaper milk and dairy products in a developed country for a very reasonable cost by simply restricting the take of the middleman and incurring virtually no taxpayer money other than administration of the program.
While the report mentioned was stated as "last week's" that's not quite the case. It was published April 9th 2018. The data and discussion contained within the document had an end date of 2016.
So this pretty much confirms what I've been arguing all along.
The most recent discussion on SM deals with claims that milk and dairy products are getting dearer every time the poster goes to the store which caused me to comment that this may not in fact be making the dairy farmer any more money, indeed as a result of the damage done to the SM dairy sector by the Harper initiated, Trudeau rubber stamped opening of doors to imported product it is possible that neither dairy farmers or consumers are benefitting from the price increases the OP indicated. As I indicated in response to farming 101s question the import figures showed a substantial increase between 2018-19 compared to the year earlier. Time wise this is clearly out with the scope of the report so report doesn't indicate the current state of affairs.

Here is the report for anyone wishing to read it http://www.exportactionglobal.com/wp-content/uploads/2018/04/Dairy-Systems-Around-The-World_Export-Action-Global_April-2018.pdf http://https://www.exportactionglobal.com/wp-content/uploads/2018/04/Dairy-Systems-Around-The-World_Export-Action-Global_April-2018.pdf