Dairy farm numbers decline; milk production grows

Thursday, January 13, 2011

by SUSAN MANN

Ontario’s dairy farmers marketed nearly 2. 5 billion litres of milk during the fiscal year that ended Oct. 31, 2010. That’s up slightly over last year’s marketing of 2.488 billion litres, indicate figures from the Dairy Farmers of Ontario’s 2010 annual report released this week at the organization’s annual meeting in Toronto.

In 2009/10, Dairy Farmers billed processors $1.88 billion for the milk. The organization retained $65.2 million for milk transportation, $13.1 million to administer the marketing system, $32.4 million for market expansion, $1 million for research and about $400,000 to operate the Canadian Quality Milk program. The $1.77 billion balance was paid to the 4,174 licensed dairy farms that support about 9,700 families. The organization also collected $1.5 million for CanWest DHI to support milk recording programs.

The number of licensed dairy farms declined by 44 this past fiscal year from the previous fiscal year’s total number of 4,218. But there was an increase in new entrants. During the 2009/10 fiscal year, 26 new producers acquired quota on the exchange compared to 10 during the previous fiscal year, it says in the report. Eight of the 26 started in the industry through the new entrant quota assistance program.

During the current fiscal year, farmers’ licence fees were increased by four cents a hectolitre going to 58 cents a hectolitre from 54 cents per hl. The other deductions, Canadian Quality Milk, research, market expansion and CanWest DHI stayed the same while transportation costs are charged at actual rates. Transportation charges during the 2009/10 fiscal year ranged from a high of $2.60 per hl of milk shipped in May, 2010 to a low of $2.40 per hl in November and December of 2009. The numbers were in the 2011 budget discussed at Thursday’s session of the meeting and in the annual report.
 
The board approved the budget, which calls for revenues of $16.27 million, expenses of $16.22 million and a $43,677 surplus, in October. BF