On May 5, 2020 the BC government announced a 5-phase plan to open BCs economic activity. Over the past 8 weeks the BC Milk Board (the Board) has been actively working with the Western Milk Pool (WMP) and processors across the West to determine changes in market demand as the HRI (Hotel & Restaurant Industry) emerges through each phase.
The Board adjusted June production to daily quota plus 1 day with the goal of allowing full production (+5/-15) as soon as possible. We are currently meeting all market demand and have a surplus of milk in Western Canada to support immediate processor demand increases.
The current outlook appears favourable with the economy further opening to HRI and travel over the summer months and as such the WMP will continue to review supply and demand on a weekly basis. The Board and the WMP plans to review Fall production requirements in mid-July and the Board will provide direction following this meeting.
Conventional Producers: Daily Quota plus 1 day
There is currently no change for July 2020 production. Producers should continue to produce their daily quota plus 1 day. Producers can conduct credit transfers but will only be paid for production up to plus 1 day beyond their daily quota.
Please note that it is your responsibility to ensure if credits are purchased that you do not put yourself in a position where they are lost. Please see the example below and contact the quota team if you have any questions.
- CDQ: 200 kgs
- Ship Days: 30 + plus 1 day
- Credit Start Position: +5 Days Over
Producer BUYS 600 credits (3 days) and their adjusted credit start position is now +2 days over (5 – 3)
- The producer overproduces by 3 days
- The Producer will be paid for 31 days (30 + 1)
- The producer will use the 600 credits (3 days) but will only be paid for 1 day
To clarify, the producer’s current month end position is now +5 days over and the Producer has been unpaid for 400 credits of the 600 purchased.
Incentive Days – No announcement
Due to continued uncertainty and unknown demand, the Board has not yet announced whether there will be any Fall incentive days this year. The Board will primarily seek to move producers to full production availability (+5/-15 days) before issuing incentive days. The Board will monitor the situation closely and provide updates to the industry as necessary.
We appreciate your patience regarding production direction.