The Rural Voice, 1978-09, Page 27Milk producers need
price increase soon
Ken McKinnon, chairman of the Ontario
Milk Marketing Board says that if present
trends in increased production costs for
industrial milk producers continue, the
producers will need price increases within
the next two or three months.
McKinnon was speaking at a conference
of national directors of the Dairy Farmers
of Canada in Port Elgin recently.
Industrial milk producers will be
meeting with federal government officials
soon to discuss price- increases and to
suggest alterations in a formula which has
set milk prices for the past two years.
These , prices are set by the federal
cabinet according to a quarterly Statistics
Canada report on production cost. Every
four per cent increase automatically
triggers a price increase. Industrial milk
producers, especially those whose milk is
sold for cheese. ice cream, butter and
-yogurt, will recommend price changes with
every two per cent cost increase.
At the meeting, directors of the Dairy
Farmers of Canada backed the highly
regulated system of quotas, despite recent
criticisms that quotas inhibit growth in the
industry.
There have been complaints from
provincial groups that say they do not have
a large enough share of national production
and from individual processors who feel
supply restraints prevent them from
expanding their market share.
McKinnon hoped that arguments
between provinces or between individual
processors wouldn't disrupt the system.
which is, "very badly needed for producers
and good for consumers in the long run."
A national quota system is established
based on economic projections of how
much milk will be required in the country.
Volume of milk production is divided
among the provinces according to their
historical market share. Provincial boards
allocate available milk to industrial
processors within each province.
Ontario has increased market potential
for industrial milk but the Ontario Milk
Marketing Board (OMMB) must keep an
overall view of the situation, since it
governs the sale of industrial milk in this
province.
McKinnon admitted that he can under-
stand processors wanting to take advan-
tage of the increased potential market in
the province but they can't unless they are
allowed to purchase more milk from the
OMMB.
"Processors should understand and
accept that they can't have more without
taking it away from somebody else."
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1 MF 52 Disc 10 ft.
1 case Forage Harvester
1 Kastner forage box
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1 MF 165 Diesel Tractor
1 MF 180 Diesel Tractor
1 MF 35 Diesel Tractor with Loader
1 MF 86 Plow
1 502 Cockshutt Swather
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THE RURAL VOICE/SEPTEMBER 1978 PG.21