Strong demand for milk is leading to a quota increase for producers across Western Canada.
Producers in BC and the other three provinces within the Western Milk Pool will receive a 2% increase to their daily quota effective September 1.
“This increase in daily quota is being issued to meet the continued strong demand in both the fluid and industrial markets,” the announcement, made July 31, stated. “[It] will also bring producer quota issuance more in-line with total quota allotted through total market requirements.”
The announcement kicked off the new dairy year, which began August 1. It follows an increase on February 1, which responded to processor demand.
BC producers received an extra 3% quota in that round, which aimed to level out quota issuance to each of the four provinces in the Western Milk Pool at approximately 101%.
“In previous years, we haven’t had the processing, so we haven’t been able to allocate all of our quota,” Jeremy Wiebe, executive treasurer with the BC Milk Marketing Board, told producers on April 12 as part of their spring meetings.
BC was one of two provinces to receive a boost to 101% quota allocation, thanks in part to the expansion of milk processing capacity in the province.
Most recently, Vitalus Nutrition Inc. has commissioned a massive new butter churn that’s supplying BC-churned butter to the west, and is also building a plant to process 500 million litres in Abbotsford that’s set to be operational by fall 2026.
“It’s a big deal for the West. It’s going to result in a lot of quota growth for farmers,” Wiebe said in April, noting that the outlook for milk processing is as bright as it’s been in at least a decade.
Demand typically increases with the return to school and regular fall activities.
However, staff with the four milk marketing boards across the Western Milk Pool provinces will continue to monitor the production and processing situation on a weekly basis to determine if further adjustments in production and quota allocations are needed.
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