Don’t Move the Quota

Apr 08, 2014

Letter Asks DFO to Not Allow UoG to Move the Kemptville College Dairy Quota to Elora

By Amanda Brodhagen, Farms.com

Members of the Eastern Ontario farming community are trying to keep the dairy herd and quota attached to the Dairy Education and Innovation Centre at Kemptville College in the region.

Concerns about losing the robotic dairy facility were raised after the University of Guelph announced this spring that it would be closing the agricultural institution by 2015. The fairly new dairy centre is only three years old and opened on May 27, 2011.

Shortly following the announcement, university officials expressed that it planned to move the college’s dairy quota to its state-of-the-art $25-million dairy facility in Elora, Ont. The dairy centre is in the midst of being built and is expected to open sometime in 2014.

A group which formed to devise a solution to continue agriculture programing at Kempville College is asking Dairy Farmers of Ontario (DFO) to interfere and not grant the university permission to transfer the quota over to Elora.

“We are trying to stop the cows and quota from leaving there because it’s one of the most important parts of the college,” Marty Derks Vice-Chair of the Kempvillge College Task Force said in an interview.

The letter dated April 2, 2014 addressed to Bill Emmott, Chair of DFO highlights the importance of maintaining a dairy research barn in Eastern Ontario.

“The Task Force is of the view that this dairy herd, and associated quota, is a keystone element in maintaining a sustainable agricultural education program at Kemptville and trust that the Dairy Farmers of Ontario would be in agreement with this objective,” the letter said.

The quota is owned by DFO and was provided to the university for the purpose of research and education. DFO says it plans to wait to hear about future plans associated with Kemptville before making a decision on the quota.

"DFO has requested details from The University of Guelph's decision regarding the closing of the University of Guelph's Kemptville and Alfred campuses. The concerns of the producers are being addressed by the Board and Staff at DFO,” Bill Emmott DFO Chair said in an emailed statement.

Meetings have been scheduled with University of Guelph officials and local stakeholders to discuss the quota situation. Emmott says DFO will “not be rushed into any decision” until more information about the status of Kemptvillge College becomes available.

Video: Will the 2025 USDA December Crop Report Be a Market Mover/Surprise?

Historically, the USDA December crop report is a non-event or another dud report as the USDA reserves any final supply changes to the final report in January of the following year in this case 2026. But after the longest U.S. government shutdown in history at 43 days and no October crop report will they provide more data/surprise and make an exception?
Our China U.S. soybean purchase tracker is now at 26.6% or a total of 3.2 mmt but for traders it’s taking too long to unfold.
The final Stats Canada production report was bearish canola and wheat projection a record crop in both (it adds to the global glut of supplies) and bullish local corn and soybean prices in Ontario/Quebec thanks to a drought. It will not help the fund flow short-term, the USDA may need to offset it?
A U.S. Fed interest rate cut of another 25-basis point next Wednesday (probability 87.1%) could help fund flow and sentiment in stock and ag commodities into year end.
More inflows into Bitcoin this past week saw prices rebound back above 90,000 with support at 82,000 and resistance at 96,000.
A V-shaped bottom in cattle suggest the lows are in after Mexico reported another new world screwworm case. Lower weights, seasonal demand and higher U.S. beef select/choice values with a continued closure of the Mexican border to cattle will result in a resumption of higher cattle futures into yearend.
Australia is expected to produce its 3rd largest wheat crop ever at 36 mmt adding to the global glut of supplies.
Reports of ASF in hogs in Spain the largest pork exporter in Europe could see the U.S. win more pork export business long-term.
If the rains verify into next week of 3-5 inches for Brazil it would go a long way to fixing the dry regions from the last 2-months, but the European weather model has been wrong for the past 2-months!
Natural gas futures are surging to the 3rd price count as frigid hold temps set in.
CDN $ is also surging to end the week on a very resilient economy and better employment numbers suggesting no interest rate cuts next week.
Finally, the CFTC report showed funds were net buyers of soybeans but sellers of corn, canola and wheat. In real time the funds have gone back to selling as they take some profits.