MARKETS
[ DFO APPROVES INGREDIENTS PROGRAM
A
t its March 30 meeting, Dairy
Farmers of Ontario’s (DFO)
board approved the new pricing regulation, effectively implementing a new class for dairy
ingredients.
“Ontario’s ingredients program is expected to strengthen the industry and stimulate
much needed investment,” says
Ralph Dietrich, DFO chair. Dietrich further noted one of the primary objectives of the Ontario ingredients
program is to competitively position the
ingredients listed in Class 6 for dairy processing. “Current industry and market conditions have only reinforced the fact that
new investment in ingredient capacity is an
absolute necessity. This new pricing will go
a long way to make that happen.”
Dietrich thanked the Ontario Farm
Products Marketing Commission and the
Ontario Ministry of Agriculture, Food and
Rural Affairs for their support and assistance with making the necessary regulatory changes.
“This is an important step for the Canadian dairy industry to modernize its
current infrastructure. It will position our
industry to be more competitive. While
Ontario has taken a leadership role, it is
important to have a national ingredients
program. DFO is hopeful that compromises can be found to allow all provinces
to have an ingredients program in the near
future,” says Peter Gould, DFO general
manager.
The industry is faced with unprecedented challenges, ranging from not being able
to meet current and growing demand for
P5 UTILIZATION BY CLASS*
% Butterfat
% Solids Non-Fat
For January 2016 (kg of butterfat/kg of solids non-fat)
11.79%
1(a)
1(b)
2(a)
2(b)
2.10%
0.94%
6.27%
3.95%
5.10%
5.54%
3(a)
10.57%
3(b)
4
5(a)
5(b)
5(c)
5(d)/4(m)
0%
40
15.74%
12.00%
11.54%
3(c)
3(d)
26.75%
10.83%
3.13%
3.11%
3.00%
27.07%
1.19%
2.40%
2.56%
0.53%
1.43%
1.26%
1.75%
0.15%
5%
22.71%
10%
15%
APRIL 2016 | MILKPRODUCER
20%
25%
butterfat, disposing of skim milk every
week and dryers that are at capacity and
outdated, Gould says. DFO saw urgency
in the situation and the need to implement
a plan that would lead to changes, with
one of the most important changes being
investment in processing infrastructure, he
added.
“This is without a doubt one of the biggest changes since the inception of orderly
marketing,” Gould says.
Dairy Farmers of Manitoba recently
announced it will adopt the Ontario program in August 2016.
DFO is working with the Ontario Dairy
Council and scheduling ongoing processor
orientation and training meetings to review
changes to milk and ingredient utilization
reporting arising from the implementation
of the new class.
30%
35%
40%
45
Class 1a Homo, 2%, 1%, skim, chocolate
milk, flavoured milks, buttermilk
Class 1b Fluid creams
Class 2a Yogurt, yogurt beverages, Kefir
and Lassi
Class 2b Ice cream, sour cream, frozen
yogurt
Class 3a Fresh cheese, specialty cheese
Class 3b Cheddar cheese
Class 3c All types of Mozzarella except
when declared in 3d
Class 3d Mozzarella used strictly on
fresh pizzas by establishments
registered with the CDC
Class 4a Butter and powders
Class 4b Condensed and evaporated milk
for retail sale
Class 4c New products
Class 4d Inventory, animal feed
Class 4m Domestic surplus
Class 5a Cheese for further processing
Class 5b Non-cheese products for further
processing
Class 5c Confectionery products
Class 5d Planned exports
(Class 4m is grouped with 5d)
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