Supply Management in the Ontario Dairy Industry Essay

Net Sales – totaled $4,485,000.00 for year 6, and grew +33.3% or $1,495,000.00 between years 6 to 7.

The Ontario Dairy Herd Improvement Corporation, run by general manager John Meek, aims to improve the efficiency and profitability of dairy farming through an accurate, rapid, and cost effective milk testing service. Milk testing is an essential herd management component for all dairy processors as it measures the amount, quality and contents of the dairy products. Supply management agencies limit milk production; thus, profit is maximized through acquiring premiums from quality dairy with high levels of protein and butter fat as opposed to mass production and distribution. The dairy herd is the largest source of revenue for farmers, data from milk testing helps maximize milk production as farmers

In 1990, there were over 9300 dairy farms in Ontario housing almost 450,000 cows. The farm-gate value of milk produced exceeded 1.3 billion dollars. At the retail level, dairy product sales in Ontario exceeded 4 billion dollars. The number of dairy herds in Ontario on a milk-testing program had declined from about 7100 in 1985 to 6000 in 1990. Moreover, a continued decrease was projected.

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:

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

Out of those one thousand people surveyed in Wisconsin, 75% of them stated they would pay as much as forty-four cents extra per gallon to avoid genetically engineered hormones in their milk. Keep in mind that Wisconsin is the leading milk producing state (Rachel. "Hormones...")

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

In this report I will discuss issues about the Japanese dairy market and industry, which is in dire need of expansion and attention as it supplies millions of Japanese people with their dairy needs. In this report I will discuss certain key aspects of the Japanese dairy market, Including characteristics of the market, market size, interest of the Japanese, issues and recovery followed with a comparison of another country with added graphs and statistical figures to support my points and statement.

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

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,

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

The Agriculture act of 1949 provided dairy farmers with a permanent price support for the time after war (5). Under the price support program, farmers sold milk in bulk. The price support program purchased manufactured milk products such as cheese, butter, etc. By purchasing manufactured milk products, the USDA’s CCC created a floor support price that was bellow the wholesale price that companies charged for their manufactured milk products (6). An indirect result of this floor support price was that it provided a price support for all of the milk from dairy and cooperatives that supplied the milk used to make the manufactured products.

 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).