Volume 9, Number 10 May 2002

Milkline isa publicationof Manitoba

Milk Producers.

Inside...2 Chairman’s Comments

Question of the MonthMilk Quality Report

3 Pooling

4 Cow to Carton ProgramReal CreamMilk Quality

5 Average Producer PriceSkimmingsQuota Corner

6 Sales & Services

Short Note

Mark YourCalendars!

Our 5th Annual Charity“Texas Scramble” GolfTournament is beingheld July 30, 2002,Kingswood Golf & Coun-try Club, La Salle, MB.

All proceeds donated tothe Children’s HospitalFoundation and Mani-toba Milk Producers U ofM Dairy Science BursaryFund.

New Over Quota Discipline StartingMay 1, 2002

Effective May 1, 2002, any overquota milk shipped by a producer

will be considered as pre-filling his/herDaily Quota for the next three monthsin equal installments. Manitoba isover quota as of March 2002 andproduction is still strong. Provincesare now individually held accountablefor all their over quota production inthe national milk marketing system.This is now being filtered down to theindividual producer in Manitoba.

Canada is in a new tradingenvironment. Under the World TradeOrganization (WTO) agreement,Canada is limited to the amount ofsubsidized exports it can ship to othercountries. After a certain amount ofpre-committed exports, most of theexports are used to deal withuncommitted or over quotaproduction. Once these export quotasare filled, Canada must then absorbthis over quota production into thedomestic market, first through lowvalued animal feed permits and finallythrough the build up of surplusdomestic stocks. At last report, exportquotas are very close to being filled.

In addition, Canada is in a newmilk marketing environment.Nationally, all provinces have agreedthat provinces will be heldindividually responsible for their overquota production. Any over quotaproduction that is over 101% of aprovince’s MSQ must be exported.Manitoba Milk Producers has

contracted four million litres ofexports over the next four months dueto Manitoba’s high over quotaproduction. These exports areextremely low in value and willreduce Manitoba’s in-quota pool priceby as much as $2.50/hL over the nextfour months. In addition, if domesticstocks rise over normal levels due toover quota production, Manitoba willhave its quota cut.

Given the above factors, the Boardhad no choice but to ensureproduction discipline prevails in thesystem. Effective May 1, 2002,any over quota milk shipped bya producer will be consideredas pre-filling his/her Daily Quotafor the next three months inequal installments (seeexamples on page 3). All pre-filled Daily Quota will be paidat the over quota price. Should aproducer ship below his pre-filledDaily Quota, any credits accumulatedwill be applied against the over quotabalance. The Cover Off program willnot be affected by this quota policychange. It is in the best interestsof all Manitoba producers toship within their daily quotaplus credits if any apply.

Please see examples of how thisnew pre-filled Daily Quota systemwill work on page 3.

Chairman’scomments Question of the month

Milkl ine 2 May 2002

Milk Quality ReportThe following milk quality details acknowledge the qualityjob producers are doing in Manitoba. The figures are basedon the official test of Manitoba Agriculture’s Provincial DairyLab.

Percentage of milk samplesmeeting or exceeding provincial standards

March 2002Somatic Cell CountPlate Loop Count

ProvincialAverage

97.5%97.5%

239,000 13,000

Internal Review

A slight softening of domestic demand for cheeseand butter in Canada lead the Canadian DairyCommission (C.D.C) to reduce the domestic industrialquota to all provinces in November 2001. In the caseof butter the most recent 12 month sales statisticsindicate a 2.1% decline in sales. Sales of cheese arestill positive for the most recent 12 months at +3.1%however growth has not been as strong as it has beenin the past. Consequently, cheese and butter stocksare increasing. The C.D.C. had actually announcedquota rollbacks in April 2001, August 2001, andNovember 2001, however your Board in Manitobadelayed quota adjustments because production in theprovince was initially quite low. By delaying the 1.26%quota rollbacks that the C.D.C. had implemented,Manitoba had over issued the provincial quota toproducers. Your Board felt that this was the betteroption at the time to ensure that our provincial quotawas filled, and our processors received the milk theyneeded. Production across the province has increaseddramatically over the past 6 weeks, and fluid sales inManitoba are down by .63% for the period August toMarch.This lead your Board to become increasinglyconcerned as Manitoba may now complete the dairyyear (July 31st) in an over quota position. The nationalpolicy on over quota production is that each provinceis responsible for it’s own over quota production, whichwill then have a financial impact on all producers.Therefore due to changes in market demand, anddramatic increases in our daily production, your Boarddecided that the most responsible thing to do was toreduce quota to all producers by 1.26%.

You were asking

Late last fall the Board of Directors of Manitoba MilkProducers decided that we should conduct an internalreview of operations. The last review was done in 1985and it was not a full review of board operations. Mani-toba Milk Producers went through a selection processwhere we had three management firms make propos-als to the Board of Directors. After careful considera-tion, Bowes Leadership Group was contracted to per-form the review at a cost of $37,000.

The firm did an extensive review, interviewing boardmembers, past chairman, individual Manitoba produc-ers and former staff. They also interviewed manage-ment and held focus groups with staff. The findingswere somewhat surprising; the views of staff were quitedifferent from that of directors and past chairman. Ithink this is a healthy process and the organizationwill be much stronger for it in the future.

At the last board meeting, the board of directors ofManitoba Milk Producers agreed to accept the BowesLeadership Group’s final report and begin its imple-mentation.

There are a number of recommendations in the re-port that Manitoba Milk Producers will respond to inthe months and years to come.

In the next few weeks, the board will be developinga plan to implement a number of recommendations,keeping in mind that the producers of Manitoba needto be the beneficiaries of any changes.

As our mission statement states “maximizing pro-ducer returns in a growing and dynamic dairy indus-try” and delivering services at the most cost effectiveway.

What Caused Manitoba MilkProducers to Roll Back Quota by 1.26%on May 1st?

3 May 2002Milkl ine

Quota

How the New Pre-Filled Quota Policy Works:The following 3 scenarios for an average Manitoba producer will clarify how the new Pre-fill Policy will be

administered.Assume the following:Producers Daily Quota = 50.00 kg. butterfat/dayAll Production months = 30 days (Therefore, the normal monthly quota allotment is: 30 x 50.00 kg = 1,500 kg)

Example #1Our sample producer ships 30 kilograms of over quota production in the month of May. Therefore this producer

has “pre-filled” quota equal to 30 kilograms of butterfat to be spread equally over the next 3 months. Therefore 10kilograms of pre-filled butterfat (30 kilograms of over quota divided by 3 months = 10 kilograms/month) will be takenoff of the monthly quota in the months of June, July and August. In this example the producer is able to reduceproduction over the months of June, July and August to accommodate the adjusted quota. Monthly allocation returnsto 1,500 kilograms/month in September after the pre- filled obligation has been met.

Production Over Pre-filled AdjustedMonth (butterfat Kg.) Quota Adjustment QuotaMay 1,530 30 kg. 0 No AdjJune 1,490 0 kg. 10 kg. 1,490 kg.July 1,490 0 kg. 10 kg. 1,490 kg.August 1,490 0 kg. 10 kg. 1,490 kg.September 1,500 0 kg. 0 No AdjOctober 1,500 0 kg. 0 No Adj

Example #2In this example the producer is over quota by 30 kilograms in May, but then reduces production in June and clears

the pre-filled quota off entirely in June. Therefore monthly quota for July returns to 1,500 kilograms. The producerthen maintains production at quota for August, September, & October.

Production Over Pre-filled AdjustedMonth (butterfat kg.) Quota Adjustment QuotaMay 1,530 30 kg. 0 No Adj.June 1,470 -20 kg. 10 kg. 1,490 kg.July 1,500 0 kg. 0 kg. No Adj.August 1,500 0 kg. 0 kg. No Adj.September 1,500 0 kg. 0 kg. No AdjOctober 1,500 0 kg. 0 kg. No Adj.

Example #3In this example the producer is over quota by 30 kilograms in May, and continues to be over quota in June by 30

kilograms and 30 kilograms over in July. This will have the effect of increasing the pre-filled quota and reducing themonthly quota allotment for August, September, and October. By reducing production all the pre-filled is finallycleared off in October and the producer will be back to the full 1,500 kilogram monthly allotment for November.

Production Over Pre-filled AdjustedMonth (butterfat kg.) Quota Adjustment QuotaMay 1,530 30 kg 0 No Adj.June 1,520 30 kg -10 kg. 1,490 kg.July 1,510 30 kg -20 kg. 1,480 kg.August 1,470 0 kg. -30 kg. 1,470 kg.September 1,480 0 kg. -20 kg. 1,480 kg.October 1,490 0 kg. -10 kg. 1,490 kg.

Note: To keep things simple, this example does not take into account the 1.5 day Cover-off in effect from Augustthrough November.

For up-to-date milk quality, production and quota utilization information call 1-877-639-3967 (TollFree 24 hour information system) or call Board staff during office hours toll free @ 1-800-567-1671.

Milkl ine 4 May 2002

Requests for the “Cow to Carton” program has grownagain this year. As of April 1st, I have visited 178 classesin 72 schools for approximately 4,500 students this schoolyear.

I was invited to participate in a number of ScienceAwareness days this winter, which is a really great wayto reach a large number of students, teachers and parentsand will be presenting at the Provincial Science Sympo-sium at the University of Winnipeg this month. I ampleased to have been invited to participate in the SAGconference for Manitoba teachers in October. Currently, Iam working on more resource material for Ag in the Class-room, and developing a resource focusing on “Cow Com-fort”.

“Cow to Carton” Program Update

“Cow to Carton”The program has been adapted to discuss more about

ways farmers care for their animals responsibly. Studentsare very excited with the Manitoba Milk Producers book-marks that they receive, which include a dairy quiz withtheir parents, therefore getting the information out toparents as well.

Teachers are very appreciative of the photocopyableblackline masters that we have developed, as they oftenhave difficulty finding current agricultural teaching re-sources.

It is exciting how thirsty students and teachers are fordairy knowledge, and it is helpful to relate the industry tothings that they are familiar with, i.e: how many timescould Manitobas Milk Producers have filled the Pan AmPool with milk in 2001? Answer - 79 times!

Catherine WatererProgram Facilitator

Approximately 60 Manitoba restaurants and bakeriesparticipated in the Real Cream Holiday 2001 Promotion,representing a 33% increase in participation over thesame promotion a year ago. Some of the participatingrestaurant chains included Applebees, Branigans,Denny’s, Grapes, Humpty’s, Perkins, Pony Corral andSmitty’s; and participating bakeries included RoblinBakery & Pastry Shop, Dessert Sinsations & Design, andEiffel Tower Pastry Shop. When consumers ordered aReal Cream dessert at these participating restaurants andbakeries, they received a ballot to enter to win the GrandPrize of a Caribbean Cruise for Two. In addition,restaurants and bakeries were motivated to promote RealCream desserts because the restaurant or bakery thatdistributed the winning ballot would also win the sameprize of a Caribbean Cruise. The promotion wassupported by television commercials on A-Channel thatpromoted the contest at participating restaurants. A-Channel also partnered with Manitoba Milk Producersin doing a related station promotion where viewers couldwin a Cappuccino Maker if they spotted the Real Creamlogo during certain shows, providing added value toproducers’ investment. The promotion was a tremendoussuccess with about 6,400 entries received, resulting in anincrease of 6.9% in Manitoba’s cream sales for thepromotion month of November over the same time periodlast year. This momentum in cream sales has beensustained in the subsequent months. The lucky winnersof the contest are shown below.

And the cream promotions keep pouring on! Duringthe months of May and June, Manitoba Milk Producerswill join with Dairy Farmers of Ontario and Alberta Milkin a Real Cream restaurant promotion in Kelseys andMontana restaurants. Kelseys and Montana restaurantshave recently converted from non-dairy to Real Creamdesserts and will highlight their new Real Cream dessertswith in-store merchandising materials during the

promotion. In addition, customized Real Cream desserttransit shelter advertisements will be strategically placednear the two Kelseys and Montana restaurants inWinnipeg during the promotion.

Pour on the Real Cream!

On April 10, 2002, the CQM program kicked-off witha staff workshop, held by Nicole Unger, the NationalCoordinator. The following day, two workshops were heldfor the volunteers that had come forward. The 14volunteers from the workshops had a positive responseand intend to be on the program by early May. Wecurrently have 10 more volunteers that have comeforward, but have not yet been introduced to the program.All volunteers will be welcomed to join the CQM program.Contact the office if you are interested in volunteering.

Milk Quality

CQM - Update

Real Cream

(L-R) Donald Koch and Betty Yuen (Roblin Bakery & Pastry Shop),Bill Swan, Donna and Doug Collins (Consumer Contest Winners).

Milkl ine May 20025

$14,000

$15,000

$16,000

$17,000

M J J A S O N D J F M A M

$/ki

logr

am

Exchange clearing price - Manitoba May 1, 2002

Clearing Price

Kgs purchasedKgs bid forKgs sold (100%)Kgs offered (100%)

Successful bids to buyTotal bids to buySuccessful bids soldTotal bids offered to sell

$16,000.00

288.67447.48266.46449.77

58952429

Producers who have successful bidsto buy quota on the monthly quotaexchange, which is run on the firstday of each month, do not receivethe quota allocation until the firstday of the following month (onemonth later)

Note: The next monthly quota exchange will take place on June 3, 2002. Deadlinefor offers to sell and bids to buy is 4:00 pm on May 31, 2002.

The Board will not be responsible for receipts of Bids & Offers mailed or facsimiled. Itis the producer’s responsibility to confirm receipt. Producers successful in sellingtheir quota are sent a cheque by mail on the last calendar day of the month, unlessprevious arrangements have been made.

Provincial quota exchange clearing prices

New BrunswickP. E. INova ScotiaQuebecOntarioSaskatchewanAlbertaBritish Columbia

Exchange Date

$25,500.00$23,000.00$30,500.00$29,889.00$21,890.00$13,687.50

$21,443.76

Daily kg sold

26.061.723.7

2550.51,298.0

13.3

126.9

kg. B.F.kg. B.F.kg. B.F.kg. B.F.kg. B.F.kg. B.F.

kg. B.F.

Note: For those provinces notoperating under a quota sys-tem similar to Manitoba’s, thequota values have been ad-justed to reflect a Manitobaequivalent.

Quota Corner

Province $kg BF/day

AprilAprilAprilMayAprilApril

Feb

2001

Alberta Diary Board does not administer an exchange

422201115

8/19

Average producer pricesMarch 2002 poolComponent prices/kg March 2002

Domestic in-quotaOver Quota (4M)

Protein$9.399$1.100

Butterfat$5.590$1.100

Other Solids$1.365$1.100

Average components for March 2002

ProteinButterfatOther Solids

3.31 kg/hl3.85 kg/hl5.70 kg/hl

Average GrossDeductions: Transportation Administration Promotion D.H.I. FeeAverage Net $/hl

DomesticIn-quota$60.41 /hl

$1.99 /hl$0.56 /hl$0.83 /hl$0.03 /hl

$57.00 /hl

DomesticOver quota$14.15 /hl

$1.99 / hl$0.56 /hl$0.83 /hl$0.03 /hl

$10.74 /hl

2002

Skimmings

North Winnipeg Ice CreamPlant Opening in 2002

If Gerry Kovalik gets his way, there will be a brandnew ice cream manufacturing plant at the corner ofDufferin and McGregor in North Winnipeg before thisyear is out. This plant will be capable of processing10.0 million litres of Dairy Chef ice cream per yearusing made in Manitoba milk. The plans have beendeveloped, the land where the plant will be located andmost of the equipment that will go into it have alreadybeen purchased.

Gerry Kovalik, the owner of Dairy Chef Inc., andhis family have successfully operated food retailing op-erations for over 25 years. The main family business isPublic Meats, located at 949 Henderson Highway. Theyhave also operated several seasonal ice cream parloursfor the past 15 years.

Milkl ine 6 May 2002

Sales and ServicesFor Sale

If you have any questions orcomments, please contact yourBoard member.

Cows & Heifers that aremi lk ing . Contac t RoshHolsteins in Beausejour @ 204/268-9181.

3 Cows for Sale: 1 cow – pureHolstein, 2-cows Holsteincrosses. Contact Ed Wytinck at204/743-2202.

Embryos by Stromatic, Lee,Enquirer, Ignitor and EmeryBlitz. Dams with LPI’s from1900-2100. Contact KevinPlett @ 204/355-4980.

1993 Ford F150 4X4, regularcab, 175,000 Km. 302 auto, air,cruise, tilt, boxliner. Interior/Exterior 8/10. New Exhaust,new brakes. 31" Cooperradials . Asking $6,800.Contact Sheldon @ MMP office488-6455. Great truck for thefarm!

Fresh purebred Holsteinheifers. Contact Laurie Harpin Brandon @ 204/728-8448.

Patz barn cleaner in goodcondition. Patz manure pump.Grain auger 6"x13’ with 1 H.P.motor and feed bin boot (likenew). Grain auger 4"x12’. 2H.P. H.D. electric motor. 1 H.P.electric motor. 1½ H.P. instantreversing electric motor.Contact Menno 204/326-1554,or Darrel 204/346-2719.

Tennaco Silage Wrap, 30-inch volume discount. Contact204/743-2398 or 204/743-2160.

Young Holstein fresh cowand one heifer due in May.Contact Sandtree Farms @204/379-2518.

¾ ton Ford XLT Lariattruck, 4x4, 460 motor, auto,super cab, 60,000 originalhighway miles, original paint(2 tone grey with red stripe)running boards, excellentcondition. Contact 204/737-2261.

Equipment for Sale: A JiffyBlowdeck, Roskamp 9 x 12ro l ler mi l l , Westsa l iacomputerized feeding system,Westsalia weight jars andDairymaster milk claws, aBadger Barn Cleaner, chain

and transmission 200 ft,excellent condition. Contact204/ 320-9698 or cell # 204/326-0107.

Equipment – Polyethylenemop oilers (4’ and 6’), mineralfeeders, pasture water through15’ – 30’ ft on steel skids,footbaths, feed bins, liquid feedtanks, bank feeders, calffenceline feeders and polytanks. All durable andguaranteed. Contact Ken orMercedes Dowd at 204/ 827-2838 of fax 204/827-2675.

Equipment: 1 Honda motor –11 horse power, 1 beddingchopper used one season only.Very good condition. Reasonfor selling “sold cows”. ContactHubert Payett, Swan Lake at204/ 836-2293.

Equipment: 1 horse powerbooster pump for sprayingmilk parlour, 7 gallons perminute at 150 p.s.i., new price$900.00 asking $600.00 (likenew). Contact Dan at 204/743-2160.

Equipment: 7½ ft. x 17 ft.feeder wagon, good for bales,silage or chopped feed. Heavyduty construction with steelfloor and slanted bars. ContactTerry at 204/822-3802.

For Sale: Canada Common #1multifoliate alfalfa seed, 96%germination. Preinoculated in25 kg bags priced at $1.20/lb.De l ivery arrangementspossible. Call after 6:00 p.m.at (204) 886-3276 or (204) 642-2572 (cell).

Al’s Cattle Services. CustomHoof Trimming of all types ofcattle. 8 years experience atcompetitive rates. Call AllanNykoliation @ 204/562-3508 orcell 204/748-5128, Crandall,MB.

Morning-View Hoofcare.Profesional dutch method hooftr imming us ing a fu l lyautomated hydraulic chutethat keeps the cow comfortablesecured in a natural uprightstanding position and reducesstress on the cows. For service

call Adriaan T. Tichelaar 1-204/424-5105 or cell 371-6121.

Attention All Producers:Get more production andhappier cows with a visit fromthe Bovine Foot Doctor.Complete and professional hooftrimming services by AllenDalton with rates starting from$11.00 per head. No setup feesor mileage charged, plus totalbio-security program enforced.For advance booking or moreinformation contact 204/ 788-4607 anytime.

Dairy Barn PressureWashing, many years of barnwashing experience. We dowashing of farm equipment aswell. Anywhere, anytime.Please call owner/operator,Bert at Complete Wash 204/269-8000 or fax to 204/269-8000.

Attention Cattle &Dairymen: Ledel EnterprisesInc. is offering professionalhoof trimming with safe,stressless, top of the lineequipment to service all sizes& weights of cattle. 13 yearsexper ience with co l legecertificate in hoof care. CallLeon Pelletier at 204/ 254-2568or ce l l 204/ 981-3855,Winnipeg.

Bricon Safety Grooving.Concrete grooving foragriculture and industry.Dairy Barns, Milking Parlours,Al ley Ways , Feed Lots ,Runways, Ramps, Pig Barns.Contact Dennis Cyr, P.O. Box19, Grp.71, R.R. #1, Anola, Mb.R0E 0A0 at 204/ 866-3128 or1-800-590-4403.

4 Hoof Care – Professionalhoof trimmer using the Dutchmethod with upright chute. 21years experience with dairycattle. Contact Mike at 204/346-3702.

Want top dollar for yourcattle? We buy complete herdsof any size. Always looking forbred heifers at any stage oropen heifers. Always lookingfor cattle registered or grade ofany breed. Please contactShore Holsteins (Steve Jones)at 1-519-633-2990 or DerekReimer at 1-204/371-9093.

Services

Dairy herds and heiferswanted. All breeds and ageshandled. We will buy yourcattle and pay you top prices.Free herd appraisals available.Contact James Bezan ofCatt lest Services .Independently farmer ownedand operated. Call toll free at1-866-886-3575 or 204/886-3575. Bonded and licensed. MBDealer No. 1305.

Free Brewers Mashavailable – Limited quantitiesof fresh brewer’s mash for anyproducer willing to pick it upfrom our Winnipeg location.Call Jason at River CityBrewing Co. 204/ 452-2739.

Wanted

Free

Weekend and holidayemergency service.

Manitoba Milk Producers204/781-5180

or call Provincial dairy labcell phone: 204/981-4276

from 8am to 6pm.

MMP Office: 36 Scurfield Blvd.,Mailing Address:

P.O. Box 724, Station MainWinnipeg, MB R3C 2K3

Phone: 1-800-567-1671 or1-204-488-6455

Fax: 1-204-488-4772

Producer Information Access Line:1-877-639-3967

Check the MMP email and website at:e-mail: general@milk.mb.cawebsite: http://www.milk.mb.ca

Dist 1: Dick Heapy566-2104

Dist 2: Larry Black747-2867

Dist 3: Hans Borst436-2032

Dist 4: Maurice Delichte836-2535

Dist 5: Bill Swan383-5671

Dist 6: John Bannister757-2075

Dist 7: Hans Gorter433-7538

Dist 8: Ray Pelletier424-5587

Dist 9: David Wiens434-6924