DFO POLICY UPDATES

Taking Ownership

DAIRY FARMERS OF ONTARIO (DFO) would like to remind producers to ensure licence ownership information is always kept up-todate as per the following policy:

Section A, General Regulations and Policies

#14 Ownership Information

(a) Complete, accurate and up-to-date information on ownership of dairy business enterprises is required by DFO to enable it to administer its quota policies in a fair and equitable manner.

(d) All producers must specifically agree to consent to cooperate with DFO for DFO to obtain full information on the producer, ownership of the business enterprise if not an individual, the producer’s operations, the producer’s business associates, the producer’s creditors or any corporation, partnership or other business entity involved in the marketing of milk in which the producer has an interest.

All producers received letters last fall detailing the ownership information DFO has on file for each licence. Please ensure the information is reflective of current ownership or contact your Field Services Representative (FSR) to complete the appropriate forms or if you have any questions. If the information is correct, no action is required.

Dfo Policy Book Updates

Quota Policy Book

Shared Facilities - Renovations of Current Facilities

DFO’s board has updated the shared facilities policy related to renovations, for instances where some of the herd will continue to be milked during the renovations.

Raw Milk Quality Program Policy

Reminder: Graduated Inspection Schedule policy took effect June 1

At the April 2023 board meeting, the board made changes to the Graduated Inspection Schedule (GIS) policy.

The purpose of the GIS is to ensure farms that do not meet Grade A standards are inspected more often. Producers must consistently demonstrate they can maintain Grade A standards before returning to the regular inspection cycle. Conditional Grade A farms have been removed from the GIS. As a result, only farms classified as Non-Grade A and Unsanitary Non- Grade A with be entered into the GIS.

The policy has been updated as follows: Farms that receive a classification of Unsanitary Non -Grade A or Non-Grade A will be inspected according to a GIS.

Under the GIS, farms are inspected at intervals shorter than every 12 months as determined by the farm’s initial classification, as follows:

• Non-Grade A – approximately every six months;

• Unsanitary Non-Grade A – approximately every three months.

Farm inspection fees apply to inspections performed under the GIS or ordered by the Director.

Please contact your Field Service Representative for further information about the GIS.

Updated policy books are posted on the industry website, under Programs & Policies in the left navigation.

P5 Message

Changes in SNF Tier 2 Payment Policy

Since 2021, the price paid for SNF with a SNF/BF ratio between the market ratio (2.0) and the maximum ratio (2.20 - SNF in tier 2) has been paid at the monthly class 4a SNF price.

As part of the 2022-2023 annual assessment of the payment policy parameters, an analysis of revenue distribution per kilogram in tier 1 and tier 2 components revealed a discrepancy between the current tier 2 price and actual market compensation for surplus SNF.

As a result, the P5 Boards have approved the following change in the price paid for SNF in tier 2, effective August 1, 2023:

• Protein: 70 percent of the 4a price

• Lactose and other solids: 70 percent of $0.90/kg, equal to $0.63/kg

SNF below the 2.00 SNF/BF market ratio will continue to be paid at withinquota rates, as per the payment policy. The reduction in payment for SNF in tier 2 will allow the payment for tier 1 butterfat and protein to be increased, in accordance with the application of the payment policy.

The P5 quota committee will continue to evaluate the payment policy annually and update its parameters as necessary.