January 1st Quota Decrease

Dec 20, 2012

On Wednesday, December 19, 2012, the P5 provinces announced that producer quota will decrease by 1.5 per cent effective January 1, 2013. The decrease will all be applied to non-saleable quota held by producers.

The provinces reached this decision following a recommendation of the P5 Quota Committee. High production this fall, a surplus of available production credits that can potentially be filled by producers, and relatively stable markets have lead the Quota Committee to believe that P5 provinces are trending toward over-quota production in early 2013. This could lead to increased surpluses in residual products and reduced producer revenues if nothing is done, especially as production normally increases during the spring.

The P5 Quota Committee analyzes the P5 market, quota issuance and milk production levels and recommends changes to the quota, when necessary. Quota was last changed in December 2011, when it was increased by 2 per cent, primarily to stimulate additional production.

Source: DFO

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