Annual Report of Production and Sales for Alberta Dairy Control Board

38 Pages·1996·3.6 MB·English

by  Alberta Dairy Control Board

1995-1996
ANNUAL REPORT
OF PRODUCTION
AND SALES
ACPAH N A2U I A19N 9A7
ALBERTA
DAIRY
CONTROL
BOARD
/dlberra
AGRICULTURE, FOOD AND
RURAL DEVELOPMENT
Digitized by the Internet Archive
in 2017 with funding from
University of Alberta Libraries
https://archive.org/details/annualreportofpr1995albe
ANNUAL REPORT
of
PRODUCTION AND SALES
for the dairy year
ended July 31, 1996
ALBERTA DAIRY CONTROL BOARD

HIGHLIGHTS
The Alberta Dairy Control Board is decrease in the number of producers,
pleased to present the production and yet the 1,100 producers currently
sales data for the dairy year August 1 , registered shipped an average of 1,454
1995 to July 31, 1996. This data was litres of milk per day, an increase of
formerly compiled and published on a 7.89% from the previous year.
fiscal year basis in conjunction with the Although there was a net decline in the
annual report on financial operations. number of producers, the Dairy Board
The Board decided to publish registered and licensed 37 new
production and sales data on a d airy producers in the last 12 months and
year basis in order to provide annual processed 66 name changes including 26
information that would be more relevant new incorporations. This type of
to producers and processors since the activity is a d efinite indication of
Canadian Dairy Commission operates optimism and confidence in the dairy
industry.
on a d airy year ending July 3 1 .
The dairy industry continues to There has been a more dramatic
change in response to market forces and decline in cream shippers from 141 in
trade negotiations. Both large and small 1994, to 65 in 1995, and only 44 as of
processors have felt the pressures of the July 31, 1996. Corresponding cream
increasingly competitive market. production has decreased by 25 percent
Although two processors have closed from the previous year.
their plants for economic reasons,
others have continued to consolidate Quota transfer policies were changed
operations. As well, licenses were to allow producers to swap quota, or
issued to two new processors who sell by auction in addition to
established niche markets. transferring quota privately or using the
Board operated quota exchange.
Producers have also felt the impact of Restrictions were removed on buying
the changes. It is more important than and selling quota in the same year.
ever that producers understand the Despite uncertainties and challenges to
impact of dairy policies in order to the dairy system, demand for quota
adapt to the changes and make prudent continues to be strong. Fluid quota
management decisions. prices traded at an average of $288 per
litre at the beginning of the year and
The average daily milk shipment has closed at a y ear end average high of
steadily increased even though the $351 per litre; 5.87% of the provincial
number of fluid milk producers has fluid quota was transferred during the
continued to decline. There was a 5 % year. Unused market share quota prices
ranged from an average of $25 to $30 implemented nationally to comply with
international trade rules. Because a
per kilogram, with corresponding used
market share quota prices ranging from small amount (6% of total production)
an average of $21 to $29 per kilogram. was processed under special classes in
Producers transferred 12.76% of the comparison to other provinces, Alberta
contributed over 9 m illion dollars to the
provincial market share quota in the
year, the majority by private transfer. special classes pool throughout the year
In addition to the quota exchange sales and after a y ear end reconciliation,
Alberta received a 4 m illion dollar
and private transfers, the total volume
of market share quota transferred refund to be returned to producers.
included 641 applications to swap a t otal
of 265,670 kilograms of market share The success of the dairy industry
depends upon the commitment and
quota.
cooperation of all stakeholders. The
Overall production increased from 57 1 Alberta Dairy Control Board fully
million litres to 586 million litres with endorses the mission statement of
the majority of the milk used for Alberta Agriculture, Food and Rural
domestic consumption of fluid milk and
Development: “We will enable the
cream - class 1 u tilization of quota milk growth of a g lobally competitive ,
increased from 76% to 80%. While the sustainable agriculture and food
product share of homogenized milk industry through essential policy ,
remained unchanged, consumer
legislation , information and services. ”
preference for lower fat milks (1 % ,
skim, and 1 % c hocolate) continued at
the expense of 2% milk. There was Lloyd Johnston
slight increase in cream consumption, Managing Director
mainly 10% rather than whipping
cream. The trend in consumer
preference in packaging continued as
well. Substantial changes occurred with
sales of 4-litre jugs increasing from
36% to 42% and 2 l itre cartons
declining from 38% to 33%.
The remaining milk production was
used to manufacture ice-cream, yogurt,
cheese, butter and skim milk powder
and this share decreased from 53 % t o
5 1 % o f the total provincial production.
Special classes pooling was
TABLE OF CONTENTS
Table 1 Number of Processors and Distributors
Table 2 Fluid Milk and Cream Consumption
Table 3 Fluid Milk Sales
Table 4 Homogenized Milk Sales
Table 5 2% Milk Sales
Table 6 1% Milk Sales
Table 7 Skim Milk Sales
Table 8 Chocolate Milk Sales
Table 9 Buttermilk Sales
Table 10
Eggnog Sales
Table 11 Fluid Cream Sales
Table 12 Milk and Cream Sales Container Size
Table 13 Percentage of Sales by Product Size
Table 14 Product Share of Milk and Cream Sales
Table 15 Class I U tilization of Quota Milk
Table 16 Milk Utilization by Class
Table 17 Class 5 P roduction
Table 18 Special Classes Pooling Summary
Table 19 Milk and Cream Producers and Production
Table 20 Provincial Average Butterfat Tests
Table 21 Unused Market Share Quota
Table 22 Used Market Share Quota
Table 23 Fluid Quota
Table 24 Milk Prices
Table 25 Milk Classifications
Table 26 Provincial Share of Market Share Quota
Table 27
Levy Rates
TABLE 1
NUMBER OF PROCESSORS AND DISTRIBUTORS
AS OF JULY 31
Number Number Number
of of Class 1 of
Processors Processors/ Distributor
Distributors Agents/Depots
10
1993 22 107
1994 8
21
94
1995 7 73
21
1996 21 6 89
TABLE 2
FLUID MILK AND CREAM CONSUMPTION
Dairy Year Milk Cream Total
(litres) (litres) (litres)
1991-92 270,582,770 10,818,072 281,400,842
1992-93 260,256,690 10,761,616 271,018,306
1993-94 258,029,188 10,959,930 268,989,1 18
1994-95 268,959,453 11,442,861 280,402,314
1995-96 289,547,708 12,994,118 302,541,826
Milk Cream
TABLE 3
FLUID MILK SALES
% Change
1994-95 1995-96
(litres) (litres)
8.84%
August 20,928,001 22,778,700
2.92%
September 22,565,142 23,223,980
8.02%
October 22,516,429 24,322,000
8.32%
November 22,383,319 24,246,025
December 23,484,210 24,413,170 3.96%
10.11%
January 22,875,739 25,187,515
11.06%
February 20,809,254 23,111,516
March 24,339,706 25,211,826 3.58%
16.53%
April 21,878,061 25,494,323
May 14.83%
23,358,822 26,822,772
1.34%
June 22,372,101 22,671,344
July 2.87%
21,448,669 22,064,537
7.65%
Total 268,959,453 289,547,708
Dairy Year