The participants of the Motor Rally "Way to milk!" were told about the Canadian dairy system

In 1960, milk producers in Ontario were fragmented and had no unity, Henry Oosterhoff stressed. Their market position was very weak.

The authorities of the country recognized the marketing system of the dairy industry unfair and inefficient. Because of the chaos in the market, the Ontario government commissioned a study in 1963 to determine how to solve the problem of manufacturing inefficiency, which was increasing.

The answer to this question came in the form of the "Law on milk", adopted in 1965.

The “Law on milk” created an intermediary link, an organization that would buy all the milk produced on farms and sell it to processors at a favorable price. Intermediate link in Ontario was the Milk marketing Board of the province (Ontario Milk Marketing Board/OMMB).

Separately, the expert touched upon the Canadian supply management system, which plays an important role in the economy of the dairy industry of the country.

- The Canadian supply management system provides a balance in the dairy sector, allowing Canada's farmers to work together to agree on a price and adjust milk production to meet consumer demand. There are three pillars in the system - producer pricing, production discipline and import control", said Henry Oosterhoff.

The boards provide all the logistics of milk and supplies to the factories. At the national level, requirements that meet domestic consumer demand and allow avoiding overproduction are identified.

The expert said that in Canada there is a national production quota issued to the provinces, in turn, the provinces determine quotas for producers.

- Changes in the price of raw milk of grades 1-4 are determined by: changes in production costs, changes in the consumer price index in the ratio of 50 to 50, - said Mr. Oosterhoff.

The average price today is $27 per 100 kg of milk.

In retail the cost of 4 liters of milk is 4.29 Canadian dollars or $ 3.26 per gallon. The average price of butter is about $ 2.40 - $3.20 per pound.

- For the last 3 years, more than 24% of quotas accounts for farms. This means the increase of farm production at stable prices, which in turn means increased investment. The Canadian supply management system provides a balance in the dairy sector, allowing the farmers of the country to work together to agree on a price and adjust milk production to meet consumer demand. Canadian dairy farming is one of the few self - sufficient agricultural sectors that exists with no state support and provides profitability for farmers with the ability to invest in farm development", Henry Oosterhoff concluded.

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