Search
Better Farming OntarioBetter PorkBetter Farming Prairies

Better Farming Ontario Featured Articles

Better Farming Ontario magazine is published 11 times per year. After each edition is published, we share featured articles online.


World conditions affect milk prices for Ontario's dairy producers

Thursday, October 15, 2015

by SUSAN MANN

A drop in Chinese milk imports coupled with the Russian embargo on American and European goods is contributing to a decline in Ontario dairy farmers’ incomes.

Those two events in other regions of the world have led to the substantial reduction in world milk prices this year, Dairy Farmers of Ontario says in a document released at its fall regional meetings held across Ontario the first week of October. World dairy prices directly impact Canadian special class milk prices and ultimately the blend price Ontario dairy farmers get paid for their milk.

Special classes account for about 11 per cent of national butterfat production and 20 per cent of national solids-non-fat production, the document says.

Raw milk sold to processors in Canada is classified and priced according to its end use. The classes range from fluid milks (Class 1) to planned exports (Class 5d). The price processors pay for milk in the special classes (Classes 5a to 5d) is based on world prices except for the confectionary class. A national dairy industry committee and confectionary manufacturers negotiate prices in that class.

As part of national and regional agreements, Ontario milk revenues are pooled with the revenues of other provinces before being paid to Ontario farmers, according to an Ontario agriculture ministry factsheet. Each farmer gets a blended price that reflects fluid and industrial milk sales.

The drop in world prices was very evident in Ontario this spring and summer when the monthly blend price for Ontario dairy farmers declined by $3 to $8 a hectolitre compared to the same period a year ago, the Dairy Farmers document says. Only about 82 cents per hectolitre of the price drop is due to the domestic price decreases the dairy industry implemented in the spring.

“The balance is attributed to lower world prices and to a lesser extent the increasing volumes of skim milk that are being marketed into animal feed or being disposed of,” the Dairy Farmers document says.

For the 12 months ending in July, the producer within quota blend price before deductions was $79.30 a hectolitre for milk at average Ontario composition. That’s a 2.8 per cent decrease in the price compared to the previous dairy year.

Dairy Famers chair Ralph Dietrich says the world price drop is out of Ontario farmers’ and the marketing board’s control.

He notes it’s difficult for farmers to cope with the lower blend price. “Every farmer notices it.”

The blend price did rebound slightly in September, he adds.

Phil Cairns, Dairy Farmers senior policy adviser, says there’s some good news in the blend price story. “The blend price decline would be worse if our dollar was still on par with the U.S. dollar,” he notes. “If you’re selling in U.S. dollars, we add at least 30 per cent to it to get it to the Canadian dollar, and that has certainly taken the really deep sting out.”  

As for what’s on the horizon, Cairns predicts the low world dairy prices to prevail for another year.

He notes Dairy Farmers officials have been alerting farmers about the situation since the spring. “We’ve been telling farmers that 20 per cent of their skim milk is marketed at world prices.” If world prices decline, farmers’ “returns on that 20 per cent will come down accordingly.” BF

Current Issue

October 2025

Better Farming Magazine

Farms.com Breaking News

New MacDon FD2 Plus Draper Header

Wednesday, October 15, 2025

Case IH continues to expand its innovative harvest equipment lineup with the launch of the MacDon FD2 Plus Draper Header, a new series designed to provide farmers with smoother, cleaner, and more efficient harvesting. Available in multiple widths — 30, 35, 40, 45, 50, and even 61... Read this article online

New Holland IntelliSense Tech Elevates Crop Efficiency

Tuesday, October 14, 2025

The IntelliSense system features a forward-looking sensor mounted at the cab’s center line, allowing the sprayer to assess crop quality up to 50 feet ahead. It operates in two main modes: variable rate application and spot spraying. In variable rate mode, the system uses sunlight... Read this article online

Horror movies filmed in rural Ontario

Tuesday, October 14, 2025

As picturesque as rural Ontario and its farm settings can be, the landscape can also create the perfect backdrop to send chills down a spine. With that at top of mind and in celebration of all things spooky and horror in October, here are some horror movies filmed around rural... Read this article online

Precision Harvesting with HeadSight and TrueSight

Monday, October 13, 2025

Modern harvesting relies heavily on precision and smart technology, and new systems for head height control and steering are making sure you are not leaving bushels in the field. These innovations ensure efficient crop collection, protect equipment, and reduce operator fatigue during... Read this article online

BF logo

It's farming. And it's better.

 

a Farms.com Company

Subscriptions

Subscriber inquiries, change of address, or USA and international orders, please email: subscriptions@betterfarming.com or call 888-248-4893 x 281.


Article Ideas & Media Releases

Have a story idea or media release? If you want coverage of an ag issue, trend, or company news, please email us.

Follow us on Social Media

 

Sign up to a Farms.com Newsletter

 

DisclaimerPrivacy Policy2025 ©AgMedia Inc. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
Back To Top