Incentive Days

Friday, January 28, 2011

As everyone is aware by now (because I know you faithfully read your Notices to Producers and Issues Update EVERY month), a total of four incentive days have been implemented for the first quarter of 2011:

  • 1 Day in January
  • 2 Days in February
  • 1 Day in March

There still seems to be some confusion about how to fill an incentive day, and even some creative theories about how the policy works. So let me take this opportunity to set the record straight!

1)      An Incentive Day is a sleeve for the month in which it has been issued. It is available for that month only.

2)      NO you cannot bank or sell Incentive Day credits for future consideration.

3)      Incentive Days have NO bearing on your over/under position (your flexibility limits)

4)      Incentive Days ARE based completely on production.

5)      You CAN be below Day 0 and take advantage of an Incentive Day

Here is how an Incentive Day works:

               Daily Quota = 100kg

               1 Incentive Day = 100kg

               In a 30 day month, Month Quota = (100kg x 30 days) = 3,000kg + 1 Incentive Day (100kg) = 3,100kg

A producer must ship at least 3,100kg in this month in order to fill the Incentive Day.

1)      Notice how the over/under balance does not factor into this equation?

2)      Rule of thumb:    Production for the month will fill in the following order:

QuotaIncentive Day Over Credits available until maximum is reachedOver Quota

If I now have you completely confused, or even if you have further questions or comments, I invite you to please contact me for more information. 604-302-8835 or by email at mlantz@milk-bc.com


~Melanie

 

 







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