The BC Milk Board, in conjunction with the other Western Milk Pool (WMP) provinces, is announcing a 2-day per month credit use restriction effective December 1, 2021.
Even with the elimination of all the fall incentive days the WMP continues to be in a milk surplus situation from week to week and further measures need to be taken to reduce the current skimming volumes going forward. The retail side of the market has experienced some significant weakening in recent months with little offsetting growth in the hotel and restaurant sectors. This has and continues to impact WMP fluid and industrial milk orders. The credit use restriction will continue to be in effect until an announcement is made to modify or eliminate it.
The WMP will continue to closely monitor the milk supply and demand situation and will respond as required based on the market signals.
This notice does not apply to the organic production pool, or the Board recognized grass-fed milk.
- Producers can produce their daily quota plus 2 days
- Producers can conduct credit transfers; all credit transfers will be applied
- Producers will only be paid for credits up to plus 2 days and any additional production will be deemed produced with no payment
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 2 days
Credit Start Position: +5 Days Over
Producer BUYS 800 credits (4 days) and their adjusted credit start position is now +1 days over
The producer overproduces by 3 days
The Producer will be paid for 32 days (30 +2)
The producer will use the 600 credits (3 days) but will only be paid for 2 days
To clarify, the producer’s current month end position is now +4 days over and the Producer has lost 200 credits of the 800 credits they just bought.