World conditions affect milk prices for Ontario's dairy producers Thursday, October 15, 2015 by SUSAN MANNA 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 Canada's rural communities remain Tory blue Reinstated program helps Ontario apple and tender fruit growers deal with tough weather
RaboResearch says tariffs are disrupting global pork trade Wednesday, May 21, 2025 According to a recent report from Rabobank, pork prices have rebounded and remain strong despite shifting trade flows and growing economic and consumer uncertainties. Rabobank is a Dutch multinational banking and financial services company specializing in the global food and agricultural... Read this article online
Northern Ontario Farms Get Ag Plastic Recycling Wednesday, May 21, 2025 Northern Ontario agriculture communities have compacted 27 metric tons of agricultural plastics. The Northern Ontario Farm Innovation Alliance (NOFIA), in partnership with the northern caucus of the Ontario Federation of Agriculture (OFA), is proud to announce major progress in its... Read this article online
Ontario's Foodbelt: A Bold Move to Protect Farmland and Food Security Tuesday, May 13, 2025 The Ontario Federation of Agriculture, the National Farmers Union, Christian Farmers Federation of Ontario, and Ontario Farmland Trust are collaborating with Ontario Greens Leader Mike Schreiner and Haldimand-Norfolk independent MPP Bobbi Ann Brady to introduce legislation aimed at... Read this article online
Protecting Plant Health Supports All Life Monday, May 12, 2025 Healthy plants are vital to the survival and well-being of people, animals, and nature. They clean the air, support biodiversity, and are the foundation of food and economic systems. On May 12, Canadians celebrate International Day of Plant Health. The Canadian Food Inspection Agency (CFIA)... Read this article online
V6 Agronomy Joins Port of Johnstown Deal Monday, May 12, 2025 V6 Agronomy has partnered with the Port of Johnstown (100 kilometres south of Ottawa) to build a national fertilizer hub. This long-term collaboration should support Canada’s food security, reduce input costs for farmers, and modernize the fertilizer supply chain using clean... Read this article online