Supply Management in the Ontario Dairy Industry Essay

According to Exhibit 3, California and South Atlantic are the top two areas that have significant difference in the number of farms having flock size over 50,000. Since these two locations contain about 45% of farm with flock size between 50,000 and 99,000 and about 46% of farms with flock size 100,000 and over, regional offices should be set and more selling effort should be invested. The specific numbers are as following:

Pricing for Milk in the U.S. Dairy Industry has been a difficult task for more than a century. Unlike regular consumer goods, which follow the typical supply and demand laws, milk has unique aspects that make prices very volatile, which makes pricing difficult for dairy farmers. One reason for this volatile pricing is due to the fact that milk is a flow commodity, which means it is produced daily and moved daily (Manchester, 2). Unlike other commodities, milk can’t be stored for long periods (2). This makes it difficult to store excess supply. Another reason milk is difficult to price is due to the fact that production of milk does not meet the supply of milk (2). Milk has almost zero demand during the weekends, but is produced daily.

In 1993, due to the decline in milk consumption, dairy farmers in California came together to form the California Milk Processors Board (CMPB). They agreed to give three cents for each gallon sold to fund an advertising campaign with the main purpose of “reminding people to drink milk” (gotmilk.com). Jeff Manning, the man hired by the CMPB to find an advertising company, appointed an ad agency known today as: Goodby, Silverstein & Partners. The San Francisco based company began immediate consumer research in which they found the majority of people loathed running out of milk, especially when sitting down to a sweet or sticky treat. They took this information and formed what’s known as the deprivation strategy. Rather than just advertising

More milk is exactly what the United States doesn't need. The slightest increase in milk production can lead to a drastic decline in milk prices. "In 1990-1991, a 3% increase in milk production led to a 35% decline in dairy prices" (Atwater). Declines such as these really

A tariff forces up the cost of an imported good and causes it to be less competitive in the domestic economy. The Canadian government has enforced triple digit tariffs on imported dairy products to protect Canada’s dairy economy from the world. Hence, it is very costly to sell imported milk in Canada after the tariffs have been added to the selling price and thus few companies try to compete with Canadian companies. Consequently, Canadian farmers have an oligopoly for dairy production in Canada and subsequently the farmers are able to control the selling price of milk. The dairy farmers have formed a cartel that controls the quantity produced in order to keep prices high. (Cocktail Party Economiccs, p. 124) This joint collaboration allows farmers to raise the price of milk as high as it is profitable for them to do so. Therefore, the price of milk in Canada is far above the world price. As a result, farmers are very worried about what will happen to them if the dairy market becomes open to free trade and they have to compete with the world

space available, holding area dimensions and capacity of milking parlor, animal body size and age, and body condition, stall size and condition,

Anna is an undergraduate student at the University of Guelph, Ontario. She is responsible for researching and writing about a wide variety of topics related to dairy cow welfare and management for Dairy Quality Inc. The 10 years she spent living in Australia, as well as her love of travelling, gives her a firsthand viewpoint of issues facing the international dairy community. She plans to graduate from the University’s College of Physical & Engineering Science in 2019 and pursue a career in the Life Sciences or Agriculture

More than 200 Coles supermarkets across Victoria are now selling Farmers’ Fund milk, a new brand of milk developed by Coles in conjunction with the Victorian Farmers Federation. Forty cents from the sale of every two-litre bottle of Farmers’ Fund milk will be directed to a dairy industry fund managed by the Victorian Farmers Federation. The fund will provide support to dairy farmers in south-eastern Australia who are successful in applying by providing grants of up to $20,000 for infrastructure, education or expert advice to help build viable

With 2,396 dairy farms, Ohio produces 5.4 billion pounds of milk a year, placing Ohio 11th in dairy production within the U.S. (Dairy, n.d.). To make this possible there are many checks and balances to ensure the safety and quality of milk. Ohio’s industry goal is to produce, process, and sell quality milk. Infrastructure within the industry is ever evolving. Farmers are focusing more on the consumer’s preference whether it is animal welfare, environment, or milk safety (Common Questions, n.d.), which overall affects the production and management in the dairy industry. Sustaining and securing Ohio’s dairy industry makes room for a plethora of jobs. “ Ohio dairy farmers contribute an average of $2.35 billion annually to Ohio, which generates

When we consider about the history of the Australian dairy industry, dairying has grown into vibrant innovative and successful industry not only in Australia but all around the world. Australian farmers adopted cows from different countries in 1788. Specifically two bulls and seven cows. The dairy industry quickly grew by 1800, Australia had a population of 322 bulls

Obtaining the raw materials and product became extremely difficult. There was a shortage of fresh milk in Europe forced supplier to sell all their supplies to face the needs of local towns

 Dairy mother has a market share of about 33% in the branded sector in West Bengal where she sells 3.4 lakhs litre of milk per day on average and undertakes its marketing operations with about 51 distributors and 600 retailers Kolkata itself. It has a huge advantage over its competitors because it is the only player when it comes to the sale of milk in bulk token. Before the entry of competitors like Amul, selling bulk milk from their mothers milk booths was about 35% of total sales in the branded segment, where Mother Dairy was the only player on the market. However, for five years, sales are declining steadily, and now it is just 8-9%.

Commercial farming increased in the late 1960s and 1970s due to the government policy and funding supports (see Fig-2) but the total number of farms continued to decline. By the turn of the century less than 600 farms remained, drastically reduced from the 1950s (Statistics Canada, 2009), and residents of the province had lost much of their control over what food was produced and under what conditions. As a result, while total provincial revenues from farming are increasing (from approximately 74 million in farm cash receipts in 2000 to 118 million in 2010 ) food security and particularly food sovereignty is not improving to the same extent (Statistics Canada 2010).

Dairy farming is a reliable and sustainable form of long term milk production, in which cow, buffalo, goats and other mammals are used for dairy purposes in order to cultivate products such as cheese, butter and milk. The dairy industry and dairy farming is crucial in providing populations of consumers with adequate calcium intake and meeting diary requirements within our dietary needs.

India is the land of various types of animals, in which many are known for milk. Milk is very important for the life of human. Even when baby born, then basic requirement becomes cholesterol and it’s come from mother’s milk. That’s mean milk is very important supplement of the food for all age group of people. In this present scenario lots of product is there which is made by milk and it is more popular and demanded in the customers like as ghee, dahi, cheese, khoya, butter, ice-cream, etc.