The Rural Voice, 1983-06, Page 32Market Share Quota. A manual subtrac-
tion of the used -to -date from your total
Market Share Quota will give your unused
M.S.Q.
The exclusion factor of 6.4 per cent is
another confusing area. In layman terms,
it means that your class 1-2 sales
multiplied by 106.4 per cent tells you at
what point your M.S.Q. starts for your
own information.
Below is the formula that is used.
Example
Class 1-2 sales 9235 litres x 106.4% =
9826 litres or your 6.4% is 519 litres.
Quota Exchange Averages
Group 1
Unused M.S.Q.
Used M.S.Q.
Group 1
Unused M.S.Q.
Used M.S.Q.
quota from your last statement, giving
you your total coverage for the balance of
the year.
To know how much you should be
delivering per day, divide that total by the
days left, giving you a daily average. It
might be more meaningful to double that
figure and look at your results on a
per -pickup basis. This formula is des-
igned to deliver 100 per cent of your
quota.
After discussing these problems we
should take a look at the quota exchange.
It might be of interest to look at averages.
\.:
1980 1981 1982
$83.47 $97.74 $126.70
24.7c 31.9c 43.2c
22.2c 25.1c 28.3c
1983
Jan. Feb.
$210.00
84.9c
50.1c
$200.00
85c
48c
March
$178.00
75c
39c
This 591 litres is at the base price, but
is not eligible for subsidy.
Another misunderstanding is the 80
per cent that was available until March
31. It only means that you have the use of
80 per cent of your total quota for the first
eight months (August to March 31). It
does not mean that you only have the use
of 80 per cent of your quota for this year.
Example
January - used 70% February - used 10%
Therefore by March 1, you have used 80
per cent of your quota. This means that
your March production will all be at
over -quota rate or $29. per hectalitre.
Five per cent per month of your quota is
held back for April, May, June and July
which equals 100 per cent of your quota.
If a producer is way over quota, he either
cuts back in production or buys enough
quota before the end of July to cover his
shipments. All over -quota penalties that
were deducted will then be returned.
Producers find themselves in many
different situations and everyone is
trying to establish just how much per day
he can ship. Therefore I have a formula
that works very well.
Example
Group I quota x 70% payout x days left in
the year (Feb. 150 days) = your class 1-2
sale for the balance of the year.
Then class 1-2 sales x exclusion factor
106.4% =
Now, add to that figure your unused
PG. 30 THE RURAL VOICE, JUNE 1983
In no way can anyone suggest to any
producer that he should or should not
buy quota or tell him how much he
should pay. This is a problem that each
producer will have to sort out for himself.
We can only suggest that you look at
three alternatives.
First, look very seriously at culling
hard and staying within your quota.
Second, buy all the quota you require.
Lastly, you may decide to do a little of
each, cull some and purchase some
quota.
Producers should be very serious
about their dairy industry. Try to shoot
for as close to 100 per cent as you can. If
you are culling your herd we would like
you to consider the first alternative. Milk
producers have a tendency to over -react
and may cull harder than they need
because of the fear of the $29. over -quota
Levy. Do not cull to the point that you will
have a dry time, or be short of milk at the
time of year that the Board can use it all
(eg., Oct., Nov., Dec.,).
I would like to make a few comments
about one of the best policies that your
Board has brought in for a long time. The
Udder Health Program. This is the first
time there has been an independent
person available to come to your farm,
test your equipment, watch your milking
procedures, then sit down and discuss
with you some changes he/she feels you
should consider.
There is a service charge, so to give
you an idea of the cost, I have given an
average.
January 1983
3 technicians made 28 calls
time spent 2.55 hours
average charge $102.00
You may receive a letter plus a blue
card to fill in if you are interested in
participating in the program.
If your somatic cell count is conti-
nually running at 300,000 plus, I suggest
that you seriously consider using this
service.
By the time you read this, you will have
received a questionnaire from the Board.
You might ask why do they need to know
that type of information? Believe me, all
those questions are there for a purpose,
and in setting up a data bank, it takes
time to get all the information required.
The purpose of the survey is:
a) to outline and describe our industry
b) to monitor changes within the
industry
c) to assist the needs of dairy farmers
d) to provide facts for the basis of new
programs and eventually set new
policies
3) Most important, to defend supply
management
Please do not treat this survey like
other surveys you have received in the
past. Take the time to fill it in and return
it.
In conclusion, I hope that you have
picked up a few points that were not clear
before. I wish the best to the dairy
producers with the hope that the econ-
omy will soon strengthen so we may
maintain a stable industry. ❑
In Memorium
The agricultural community will be
saddened to learn of the sudden death of
Don Davis, who was hit by a car while
walking his dog near his home in Guelph
on May 16.
A well known veterinarian with OMAF
at the University of Guelph, Davis was
recently appointed Director of the Animal
Industry Branch. From 1972-82 he was a
Cattle Disease Consultant with OMAF
and from 1966-72 he was Chief Inspector
of Meat Inspection for Western Ontario.
Prior to that he spent 18 years in private
practice as a large animal vet in
Uxbridge. He is a former mayor of
Uxbridge.
On behalf of the farm community, we
extend our deepest sympathies to Irene
Davis, the five Davis children and one
grandchild._