The Lucknow Sentinel, 1978-04-26, Page 17•
Page 16,-Lucknow Sentinel, Wednesday, April 26, 1978
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Whelan announces federal
dairy program for 137$
Agriculture Minister Eugene
Whelan today announced the
federal dairy program for 1978-
79.
"Most dairy farmers had a
good year in 1977-78. With the
strong financial support of the
federal government and the
co-operation of producers and
provincial marketing organiza-
tions, the coming year should be
even better," Mr. Whelan said.
"This year's program 'will
increase the producer's net
returns by about 76 cents per
hundred weight compared with
April 1, 1977. For a producer of
300,000 pounds of industrial milk,
that 'means an additional $2,300."
The increase in farmer returns
will mean a five -cent increase in
the support price for butter and a
two -cent increase in the skim milk
powder support price.
"These increases are less than
the general rate of inflation and
are necessary to maintain pro=
dicer incomes in the face of rising
costs," Mr.. Whelan said. "We
have kept the direct federal
subsidy on industrial milk produc-
tion at $2.66 per hundred weight.
This subsidy keeps retail dairy
product prices lower than they
would otherwise be.
"As in other years, supply
management is the key to the
success of this year's dairy
program. Individual producers
have the responsibility of manag-
ing their herds to stay within their
individual market sharing quot-
as."
The main features of the
1978-79 dairy program, effective
April 1 are:
* total market sharing quota,
April 1, 1978 to March 31, 1979 is
unchanged at 103.7 million hun-
dred weights (45.7 million hecto-
litres);
* federal subsidy remains at $2.66
per hundred weight ($6.04 per
hectolitre of milk with 3.604 per
cent butterfat) paid on industrial
milk and cream produced to fill
Canadian requirements;
* target price raised toa$12.42 per
hundred weight ($28.19 per
hectolitre) from $12.18 per hun-
dred weight;
support price for butter raised
five cents to $1.27 per pound
($2.80 per kilogram) and support
price for skim milk powder raised
two cents to 74 cents per pound
($1.63 per kilogram);
* levy on in -quota production
reduced to $1.00 per hundred
weight ($2.27 per hectolitre) from
$1,20 per hundred weight;
* new contingency levy of 20
cents per hundred weight (45
cents per hectolitre) collected on
all industrial milk and cream
deliveries under quota, refund-
able to producers not producing
in the sleeve or if sleeve produc-
tion is needed to meet Canadian
milk requirements;
* levy of $1.00 per hundred
weight ($2.27 per hectolitre) on
surplus cream diverted from fluid
to industrial use;
(The levy is equivalent to 20 cents
per hundred weight (45 cents per
hectolitre) on all fluid milk
shipments; last year's fluid levy
was 25 cents per hundred
weight.)
* over -quota levy raised 50 cents
to $7.50 per hundred weight
($17.03 per hectolitre);
* while principle of producer
responsibility for export disposal
of dairy products in excess of
domestic requirement is reaffirm-
ed, federal budget for export
losses in 1978-79 raised to $24.8
million from $15 million;
* Canadian Dairy Commission
budget for product promotion,
research and market development
raised to $6.5 million from $4
million;
* cheese import quotas reduced to
45 million pounds (20.4 million
kilograms) from 50 million
pounds;
* market sharing quota period to
be altered from the April 1 to
March 31 basis to an August 1 to
July 31 basis starting next year;
* all provinces will administer
quotas in four month allotments
to ensure that individual produc-
ers do not run out of quota and
have incomes reduced for long
periods of time;
* Canadian International Devel-
opment Agency budget to buy
skim milk powder for food aid
unchanged at $20 million;
* Canadian Dairy Commission
investigating new ways to in-
crease domestic industrial use of
skim milk powder which could
reduce export costs;
* In summary, the federal
government has allocated $329
million to the 1978-79 dairy
program as follows:
$260.7 million in producer sub-
sidy payments, $24.8 million for
export assistance, $17.0 Million
for carrying charges, $6.5 million
for market promotion and re-
search, $20.0 million for interna-
tional food aid.'
MILK PRODUCTION. POLICIES
Dr. Desmond Leeper
and
Dr. Bill Schilthuis
Are Pleased To Announce
The Amalgamation of the
BLUEWATER ANIMAL HOSPITAL
and the
GODERICH VETERINARY CLINIC
on May lst, 1978
The combined practice will be located at RR 2
Goderich on Hwy. No. 8 and will be known as the:
Goderich Veterinary Clinic
Patients files from the Blaewater Animal
Hospital are being transferred at this time.
The Canadian Milk Supply
Management Committee - made
up of representatives of produc-
ers and provincial governments
and chaired by the Canadian
Dairy Commission - has estimat-
ed requirements for industrial
milk in 1978-79 will be 98 million
hundred weights (43.2 million
hectolitres), the same as in
1977-78. Total market sharing
quota is made up of these market
requirements plus a five per cent
sleeve. The Milk Supply Manage-
ment Committee monitors de-
mand during the year and makes
adjustments in market sharing
quota if necessary.
"The provincial boards are
responsible for individual quota
allocations. It is my hope that the
boards will show a special
concern in their quota policies for
small producers who may have
been disadvantaged by quota cut
backs in the past," Mr. Whelan
said.
"Also, if a quota cut should be
required during the year, it
should be done through transfer
assessments or other means that
would not cut individual quotas."
"The changes in the quota
period (to an August 1 to July 31
basis) and the administration of
quotas -on a four month basis will
help us to get a more even pattern
of production in relation to
Canadian requirements and will
ensure that producers do not run
out of quota and income for long
periods of time."
In addition, the Canadian Dairy
Commission is working with the
provinces to develop further
programs to even out production
throughout the year. Dairy farm-
ers can expect regulations and
incentives towards this end to be
implemented in the -1979-80 dairy
year.
"Another important aspect of
our dairy policy is the move
towards integrating the fluid and
industrial sectors. I have always
stressed my belief that all dairy
farmers should receive the same
return for milk of equal quality
when other production con-
straints have been met. I have
asked the provinces to aim for
integration of their fluid and
industrial sectors by 1980 and I
hope to see further progress
toward this goal in the coming
dairy year."
SURPLUS DISPOSAL
Exports of surplus skim milk
powder during 1977-78 were
encouraging, Mr. Whelan said.
Stocks ' held by the Canadian
Dairy Commission at year end
were 30 million pounds (13.6
million kilograms) compared with
177.5 million pounds in storage
on April 1, 1977, and 282 million
pounds in storage on April 1,
1976. Moreover, all current
inventories and a substantial
portion of next year's production
have been sold.
Butter inventories are some-
what higher than usual - 32
million pounds (14.5 million
kilograms) - however, funds are
available from last year's dairy
program to pay for disposal of
excess supplies.
Production of sufficient butter-
fat to meet Canadian require-
ments in 1978-79 will again result
in a surplus of skim milk powder.
"Even though world market
prices for skim milk powder have
increased during the past year,
the large surpluses created by
other countries have kept prices
below Normal levels. As a result,
there is still a heavy financial
burden for Canadian dairy farm-
ers and the federal government
has again decided to set limits on
producer responsibility for export
losses," Mr, Whelan said.
CONTINUED ON PAGE 17