August Updates

Friday, August 19, 2011

Well it is my hope with the improved weather we’ve seen over these past few weeks that most if not all of you have been able to get your silage cut and/or hay baled and put up for winter feeding. How frustrating has the weather been this year? Fingers crossed it will hold out for a good corn harvest. I’m also happy to report that the end of July passed quietly into August without any hiccups on the CDQ front. No year end, no headaches. I am hoping that as producers, it has been advantageous for you as well not to have had a year-end quota deadline to reconcile!

But aside from quota and weather, there is another important bit of news that I would like to share with you at this time. My husband Mike and I are expecting our first child in mid November, and as a result I am planning to take some time away from work. I will be available for farm visits until the end of September and will be working until the latter half of October out of the office here at the Milk Board. While I plan to take a full year of maternity leave, I will be returning to work next fall. In the meantime, we have staff in place to cover my leave and answer all of your questions. In next month’s update, I will provide you with a list of the various resources and people you can access in my absence to answer your questions and concerns about the various aspects of quota management.

In closing, here are a few ongoing items you may want to keep in mind for your quota management practices as we move into the fall months:

1)      Despite what you may have heard there will be no general allotment of quota at August 1st.

2)      Incentive Days: Here are the remaining days of what has been issued to date for 2011:

        August                 1 Day                                   October               2 Days  

        September         2 Days                                 November          1 Day                                                 

3)      The Over Quota penalty remains suspended for the month of August. Be reminded that until such time as the province reaches 100%, the Board does not plan to re-instate it. As of June 30th, BC is sitting at -1.24%.


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June Quota Updates

Tuesday, June 21, 2011

With the Postal Strike in full swing I thought that the more places we can post updates for you the better, so here goes everything we have put out there over these past few weeks: 

General Allocation June 1st: Turns out that sometimes rumours do end up having some truth to them! Retroactive to June 1st, the province has received another 1% allocation. It will not reflect on your May statement however it will be applied and show up on your June statement. Which leads me to...

Incentive Days. As of May 17th, the following Days are in place for 2011:
    June, July, and August:        Each have 1 Day
    September and October:      Each have 2 Days
    November:                            1 Day
For a total of 8 Incentive Days issued so far this calendar year.

In an effort to stimulate more production the Board has SUSPENDED the Over Quota Penalty until such time as provincial numbers reach 100%.

Another key reminder for all producers is that we are no longer operating on a fixed Dairy Year. That means that there are no longer any target dates (example Jan and July 31st) to reconcile your quota holdings. This also means that there will be Quota Exchanges run every month of the year- the only time an Exchange won't run is if we don't have or cannot clear all of the sellers.

And in conclusion, which might be my most exciting news for the moment, is that we have actually managed to populate the Credits for Sale list on our Credits registry! That's right, we actually have some names there, so if you are looking to buy some credits, it might be worth your while to check it out!

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Are you set up to access your information online?

Thursday, May 19, 2011
With a potential Canada Post strike pending in the near future, I thought it would be a good opportunity to remind you about your 'online' accessibility for all of your production information. The new site is very user friendly and login allows you to access all of your current (and historical to 2008) milk statements, lab results, notices, and Quota Exchange results and forms. Do you have your username and password yet? If you have not been successful logging into your account, the following reasons might be why:


  • We created a new website last year and with it came new 'temporary' usernames and passwords for each online account.

  • Have you changed your email address since the launch of our new site? If so, your previous address may still be in our system. If this is the case, any password retrieval you attempt will be sent to whatever email address we have on file

  • You have not used the website previously to access your information. If this is the case, we won't even have an email address on file for you, therefore the password retrieval won't work, because there's no address in the system to send it to!

  • Some email addresses were deleted with the switch altogether. While you may have logged in on the old site, there is a possibility that your email address was deleted with the launch of the new site.

All of these scenarios are easy fixes. So if you would like to get your online access set up, please contact us at the office so we can get you started!

Reception     604-556-3444    or by email at
Melanie        604-302-8835    or by email at
Kathy            604-854-4471    or by email at

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Issues Update- May

Thursday, May 19, 2011

It’s been a long, cold, and unusually wet spring season. Hopefully, the warmer, drier weather is here to stay as I am sure you are all more than ready to get the silage cut and the corn planted!  With such inclement weather this spring, this is a good opportunity to review your milk statement and perhaps re-evaluate your projections for milk production over the next year. How will your farm be affected by the weather? Will production be up? Will it be down? Are you scrambling to find hay for the interim because you can’t get your first cut silage off? Has your butterfat test dropped?  Has it gone up? There are so many variables out there that can have such a significant impact on production especially when the weather impacts your ability to harvest quality forage crops to feed your cows. With this in mind there are options available to aid in managing your quota, and a few reminders to be aware of:

1)        Credit transfers: A maximum of 20% of transferable quota over a rolling 12 month period is available for sale and/or purchase. For producers at 68.50kg CDQ or less, the limit is 5,000 credits for purchase over the 12 month period as long as no credits are sold during this time. Credit transfers can also be a good way to generate cash flow if current production requirements cannot be met. Please contact us at the office if you wish to be added to the Buyers or Sellers lists on our website.

2)        I am always available by phone or in person to help review your numbers with you. I am also able to assist with any production or quota calculations if there is uncertainty about how much if any credits you may have available to buy or sell. Please don’t hesitate to contact me anytime or as often as you need to, to get the answers you’re looking for! 604-302-8835 or

3)        Incentive Days HAVE BEEN ISSUED for the autumn months. 2 have been allocated in September, 2 in October, and 1 in November. Please be reminded that credit transfers DO NOT affect your ability to qualify or fill them, so if you need to make some credit transfers to manage your current production trends, don’t hold off and let the upcoming Incentive Days keep you from doing so!  

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April Updates

Tuesday, April 05, 2011

With the conclusion of the Spring Producer meetings, there has been a lot of discussion generated about policies currently in place that affect quota management at an individual level. Let me take this opportunity to summarize some of the key points that may have an effect on some of the decision making processes at your farm:

1)      The Over Quota Penalty: Has been re-instated at April 1st, 2011. Anything assessed as over-quota in the April production month will be subject to non-payment, freight charges, levies, and a 50% penalty based on component prices. If any penalty has been incurred it will reflect on the April milk statement issued in May.

2)      Incentive Days: Until further notice, no more Incentive Days have currently been issued. The Board anticipates making an announcement regarding potential Fall Incentive Days within the next few months.

3)      CQM Bonus Initiatives: There has been a significant change to the payment structure of the CQM bonus for qualified producers that ship qualifying milk in BC. Historically the premium has been paid out at $0.30/hl and any additional premiums collected from processors have been paid back to processors. As of February 1st, these ‘excess’ funds collected will be re-distributed to qualifying producers under this program. In addition, funds held in trust that have been collected from processors over the past year will also be re-distributed to qualified producers over the next 12 months. As an added incentive, any producer that becomes CQM qualified during this time frame will be eligible for these payouts as well. So until 100% of producers in BC are CQM qualified, current CQM producers can expect an increased premium paid on their quality milk!

4)      Going Paperless: In an effort to save costs and “Go Green” the Board has initiated a voluntary program for any producer who no longer wishes to receive a hard copy of the milk statement and newsletter via postal service. All statements, Notices to Producers, and newsletters are already accessible on the website. Please contact Lisa Gruban at the office if you wish to have your name removed from the mailing list (604-854-4470). If you need to have your website login set up, please contact either Kathy Wallis (604-854-4471) or myself (604-854-4474) to get you started.

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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




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Monthly Quota Days

Friday, January 07, 2011

How is my quota month determined? This question has been raised several times, so please find below the explanation of how your ship days are alloted each month:














































































On the former system of TPQ, quota was managed over a year and reconciled on a semi-annual basis. Now the switch has been made to CDQ, and quota is reconciled monthly. It is important to understand how days are allocated to each production month so one can manage quota accordingly. Each month is based strictly on pickups, in exactly the same way it was on the former TPQ system. Each day in the calendar year is numbered (1 – 365). If the last pickup in December was on day 153 (Dec 31st), and the last pickup in November was on Day 121 (Nov 29th), then 32 quota days will be allocated in December (153-121 = 32).  However, if the last pickup in December is cancelled, the month will be reduced accordingly. The Day 151 (Dec 29th) pickup minus the last pickup in November on Day 121 (Nov 29th) now reduces the month to 30 quota days. The 2 days ‘lost’ in December are then added to the quota days allocated in January.

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Happy Holidays!

Wednesday, December 22, 2010

As the holiday season is upon us and the year draws to a close, I would like to take this opportunity to wish each and every one of you a very Merry Christmas and all the best in 2011. I look back on my first full year with the BC Milk Marketing Board and I consider myself very lucky to be a part of such a dynamic industry. I have met so many quality people (both producers and industry partners), and it is my hope that I can continue to serve you well in my position here for many more years to come!

Happy Holidays!

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Credit Transfers- some of the finer details

Monday, November 29, 2010

With the upward trend in fall/ winter production, we are seeing an ever increasing volume of credit transfers coming into the Board office. I would like to take this opportunity to fill you in on a few important things to be aware of when completing credit transfers:

1)       The credit transfer deadline is the 25th business day of the month. If that day falls on a weekend or Stat holiday, then it is the last business day BEFORE the 25th

2)       We strongly encourage you to take advantage of the credit transfer registry we have on our website. There are 2 lists to choose from: Sellers or Buyers. The value of these lists as a useful resource is a direct result of usage by producers. Please call either Kathy or myself at the office to have your name added to the appropriate list. PLEASE NOTE: You must also call us to have your name taken off the list; otherwise it will be automatically removed 90 days after initial listing.

3)       I am often asked what the credit transfer limits are within a production month. The Board does not recommend transfers large enough to exceed the +5/-15 day limits HOWEVER; the volume of credits bought or sold is at the discretion of the producer. It is important to note that the over/under position at the 1st of the month is not subject to loss or penalty, ONLY the position at month end. For instance, if a producer buys credits and with the purchase moves to -17 days on the 1st of the month, nothing will be lost as long as by the last day of the month, the producer has over-shipped enough to reach the -15 Day minimum.

4)       Another question I am commonly asked is regarding the TOTAL credit transfer limit. The limit remains at 20%; however it is now calculated over a rolling 12 month period instead of a fixed dairy year. Therefore, the date of the first transaction marks the start of the rolling 12 months. The 20% limit is calculated by 20% of the current CDQ multiplied by 365 days in a year.

Example:       100kg CDQ x 20% = 20kg x 365 days/year = 7,300kg

Over a 12 month period, this producer could transfer a total of 7,300 credits

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FAQs CDQ statements

Friday, October 15, 2010

Since the publication of our first REAL CDQ statements for August production, I have had the opportunity to hear a lot of feedback, comments, questions, and criticisms of them from producers and industry partners alike. We do encourage your feedback (and even corrections!) as we work to build statements that are both informative but straightforward to read. I would like to take this opportunity to comment on the most common points that have been brought to my attention over this past month:
1)      TARGET PRODUCTION BOX: What does it mean? Currently this Box is based on the calendar month and designed to ‘target’ your production to Day 0. For instance if you are sitting between 0 and 5 days OVER at the end of the statement month, this box will suggest you under ship your daily quota by just enough that you will wind up at Day 0 by the end of the month. Vice versa is true if you are sitting between 15 days UNDER and 0 by the end of the statement month. The intent behind this section of the statement was to provide you as a producer with a SAFE production target to aim for every month based on the end balance of the statement month. Producers beware; it does not account for incentive days!

2)      SNF RATIO, LEVIES & CREDITS: The SNF calendar is going to remain on a fixed year that runs August 1st to July 31st every year. Unfortunately, the August statements contained an error in which the levy or credit balance carried forward from 2009/2010 when it should have reflected only August numbers. Please be advised that SNF levies or credits do not carry forward year to year. If you have finished a year in a credit balance, you start the new year at zero again. If you finish in a levied balance, any levies incurred will be refunded because the province finished at July 31st within the maximum allowable of 2.4379.

3)      INCENTIVE DAY PRODUCTION: Many producers want to know how much of the issued incentive days they have managed to utilize over these past few months. The current statement format does not detail usage, but rolls it into total monthly production. From simple observation of Box 2 you can quickly determine whether or not any, some, or all of the incentive days issued were produced in the statement month.

We continue to encourage your feedback on the statements and will consider all of your comments, suggestions, and criticisms. They are still a work in progress and we are always open to formulate improvements!

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