Fee hike decision on hold

Friday, September 3, 2010

by SUSAN MANN

Dairy Farmers of Ontario has started to hash out its position on a proposed 15-cent-a-hectolitre increase in the national promotion fee.

Bill Mitchell, Dairy Farmers of Ontario assistant communications director, says the board talked about the fee increase proposal at the August meeting but it hasn’t taken a position yet. The proposal will be discussed with Dairy Producer Committee representatives at the fall policy conference in Alliston next month.

The types of concerns the board is talking about include whether there should even be an increase and, if so, should it be a one-time amount or phased in over three years. “There are a whole host of options being discussed,” Mitchell says.

Management of Dairy Farmers of Canada (DFC) proposed the promotion fee be increased to $1.45 a hectolitre from the current fee of $1.30 a hectolitre. There hasn’t been a promotion fee increase since 2003.

DFC does all of the promotion activities for Ontario and the Maritimes plus the cheese promotion for the Prairies and British Columbia. The western provinces do their own fluid milk and real cream advertising. Quebec does its own cheese, fluid milk, and real cream advertising but relies on DFC for nutrition-type campaigns.

Other provinces are also discussing the proposal and must approve it before it’s implemented.

In Ontario the proposed increase could be included in the DFO budget, which is presented at the annual meeting in January. Delegates there vote on the budget. But the board will essentially make a decision based on input from the fall policy conference. The promotion fee increase won’t be voted on as a separate item at the DFO annual meeting, Mitchell says.

Mitchell notes including the proposal in the DFO budget will depend partially on what happens in other provinces and on “what the board decides to do.” BF