AgTalk Home
AgTalk Home
Search Forums | Classifieds (157) | Skins | Language
You are logged in as a guest. ( logon | register )

Big dairy in Canada Financial difficulties
View previous thread :: View next thread
   Forums List -> Market TalkMessage format
 
nkline
Posted 1/4/2025 11:09 (#11040444 - in reply to #11039318)
Subject: RE: Big dairy in Canada Financial difficulties


West Central Iowa
phishstik - 1/3/2025 15:44

combine ken - 1/3/2025 00:51

Under our govt supply managed (communist) system, the producer has to buy a quota, to start a dairy. This can cost more than the value of the cows. Internet says $3 million, or so, for 80 cows. Then only allowed to sell the amount that the quota is for, and only to whom they are contracted to. Overproduction is literally dumped on the ground or fed to calves, not allowed to sell it. Off farm, nonquota sales are forbidden. Its a really stupid system. Chicken, & eggs are under same supply managed system. But, banks will fork out $$ because a check comes every week from the buyer of the production, plus cash value of quota. Internet search will give you some idea of this system and its costs. This particular dairy is in an area where urban development is really putting pressure on land prices, and availability, limited land in a mountain valley. Then the odours that go along with a farm in animal production beside new housing development. No idea about what a parlor would cost to milk that number of cows. Most of the feed grain, barley, is trucked in from Alberta, 700 miles away. Some alfalfa would come same distance.



You forgot to use the word "cartel" since all of your research is "from the internet" , I'm surprised. I've been on our dairy over 25 years and have dumped milk once, during the '98 ice storm when we had no power for over 60 hours. Anyone who overproduces and dumps milk must not know how to manage their farm or its just BS. Why not just sell some animals instead of literally wasting money down the drain? Banks can't use quota for collateral that has been stopped for quite a while. BC has uncapped quota values at $35k per kg, Ontario and Quebec have been capped at $25k for over 10 years.


I don’t get the quota thing, where is that money going and why?
Top of the page Bottom of the page


Jump to forum :
Search this forum
Printer friendly version
E-mail a link to this thread

(Delete cookies)