Dairy producer group plans quota assessment appeal

ONTARIO - Some dairy farmers aren’t ready to lap up their marketing board’s medicine on milk quota prices.
calendar icon 7 December 2006
clock icon 1 minute read
Starting with a core group in the Chesterville area, those unhappy producers have formed the Ontario Quota Rights Organization in response to this fall’s controversial intervention by the Dairy Farmers of Ontario to devalue milk production quota.

Criticizing the DFO as "undemocratic," the group intends to make an appeal to the Ontario Farm Products Marketing Commission, organizers say.

The right to produce one kilogram of milk solids per day in Ontario — the output of roughly one cow —hit nearly $31,000 on the October monthly quota exchange hosted by the DFO. Later that month, expressing concern over rising farm debt levels, the DFO board suddenly cancelled the November exchange — two days before opening — and announced it was considering eventual quota-sale holdbacks or "assessments" of up to 50 per cent in an attempt to cut quota prices.

While the board unanimously scrapped that proposal Oct. 31 in the wake of a producer furor, it did approve a modified assessment regime and other tweaks Nov. 17. The changes, including a minimum 15 per cent assessment on off-farm quota sales, are effective with the resumption of this month’s exchange, which the board set for Nov. 27-Dec. 11.

Source: Agri News
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