MAY 2017 • COUNTRY LIFE IN BC Milk board embarks on FIRB-ordered quota review by DAVID SCHMIDT


ABBOTSFORD – How should quota be managed in the future? That is what the BC Farm Industry Review Board is trying to determine through a new quota tools assessment review (QTAR). At the beginning of February, FIRB gave each of the province’s five supply management boards a series of questions regarding their quota transfer, allocation and new entrant policies.


Although FIRB conducted a minor


review of quota policies in 2013, its last major review took place in 2005. It was focused on specialty production and new entrant programs for milk, broiler hatching eggs, chicken, table eggs and turkey. The current review is intended to evaluate the outcomes of the 10/10/10 transfer assessments and new entrant program directive arising from the 2005 Specialty Review. FIRB says the review will evaluate whether and to what extent “the current structure of transfer assessments is impacting the movement of quota between producers” and “the current programs and tools used to reduce quota-related barriers to entry continue to support industry entry by new farmers.” The boards have been instructed to consult with their stakeholders and report to FIRB by mid-year. The BC Milk Marketing Board began its consultation spring producer meetings in late March. BCMMB director of policy Zahra Abdalla-Shamji led the consultations, asking producers to consider how the policy set out in 2005 is affecting their


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first quota exchange and run a second exchange at a lower price in both March and April after there were not enough bids in each of the first exchanges to clear the quota being offered. The huge quota increases and


sharply reduced returns producers have recently received may also be contributing to the drop in demand for quota.


BCMMB chair Ben Janzen notes


producers have received a 32% increase in their quota since 2007. “It’s unprecedented,” he told


producers, saying all but 8% of the quota is subject to the 10-10-10 transfer assessment policy.


He and interim general manager


business today and how the industry could make it easier for new entrants. “Does the 2005 policy work today?” she asked. She said transfer assessment options include


keeping the status quo, changing LIFO (last-in, first- out) to FIFO (first-in, first-out), changing or even removing the 10/10/10 assessment or setting a flat rate assessment on all transfers. Many producers blame the existing transfer assessment policy for the high quota prices although there are indications the price may have hit a ceiling. The BCMMB was forced to cancel its


Robert Delage said the drop in February’s blend price to just $71.22/hl resulted from a combination of factors, led by the introduction of the new ingredients strategy. A one-time adjustment to fit existing inventories into the new class structure cost BC producers $1.2 million or about $6.50/hl in February. However, Janzen expects producers to recoup some of those losses as there was also a calculation error in February. Fixing that error will


bring an additional $800,000 back to producers. He also expressed hope the lower returns would only be short-term. “We hope eliminating the 4m Class will result in


more revenue,” Janzen said. “Hopefully, our price won’t take as long to rebound (four months) as it did in Ontario ”


He also said the board is looking at ways to


“make it more profitable to ship higher butterfat milk,” saying the BF shortage continues despite the constant quota increases.


9


of summer BEST PART


It’s the


RCMP Musical Ride will be performing at The Fair Aug 19-23.


LARGEST AGRICULTURE SHOWCASE COME CELEBRATE AT BC’S


In celebration of Canada 150, the famous


PNE 4-H FESTIVAL AUGUST 19–22


Off ering over 30 types of project competitions as well as provincial programs for judging, speak and show and educational displays. Travel assistance off ered to clubs outside of the Fraser Valley through the


BC Youth in Agriculture Foundation. ENTRY DEADLINE: JUNE 30, 2017


FARM COUNTRY AUGUST 19–SEPTEMBER 4


Come out and experience BC’s remarkably diverse agriculture


industry. Featuring the crowd favourite Discovery Farm exhibit, pig racing, BC Dairy Association’s Dairy Zone, and BC Egg Marketing Board’s brand new egg laying competition plus a whole barn full of exciting animal displays.


604-252-3581 • agriculture@pne.ca


PACIFIC SPIRIT HORSE SHOW AUGUST 23–SEPTEMBER 4


Competitions in:


Junior Amateur Jumping, Draft Team and Indoor Eventing along with Canadian Horse Demonstrations and much more!


ENTRY DEADLINE: JULY 28, 2017


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