The seasonality of milk production is not a new issue in the dairy industry. Traditionally the milk overflows in the spring and can be scarce in the fall. Incentive days have proven to be an excellent policy tool to increase production in the fall. However, the Board also requires policy tools to control the supply of milk in the spring months to avoid excessive skimming and milk removal. Policies that restrict production through credit restrictions are used during desperate times but on an ongoing basis can be challenging for producers and may impact the volume of fall milk.
To align all policies to support the seasonality of milk production, the BC Milk Marketing Board has reviewed its over quota production policy and has adjusted the charge of 50% of the current month’s component prices calculated against that Producer’s volume of over quota production to be applied during periods of seasonally low requirements but high production. The charge was previously applied only when the province was in a positive production position nationally. The policy will now be applied starting February 1 and will end July 31 annually. The new over quota policy will become effective August 1, 2021, over quota production will be treated as follows:
August 1 – January 31
Production exceeding the 5-credit day maximum, including any applicable incentive days, will receive no payment for over quota milk shipped. All applicable freight charges and relevant deductions will continue to apply as appropriate.
February 1 – July 31
Production exceeding the 5-credit day maximum, including any applicable incentive days, will receive no payment for over quota milk shipped plus a charge of 50% of the current month’s component prices calculated against that Producer’s volume of over quota production. All applicable freight charges and relevant deductions will continue to apply as appropriate.
Please contact Zahra Abdalla-Shamji at zabdalla@bcmilk.com if you have any questions.