Canadian dairy farmer says he’s forced to dump 30,000 litres of milk

[AltaBorn]

https://m.youtube.com/watch?v=qw9pUE7hcXs

Ontario dairy farmer Jerry Huigen posted this viral video documenting how he is forced to dump 30,000 litres of milk due to supply management rules because he produced more than his quota.

[jungleboy]

This is not new news . This has been going on for years.

[pgavey]

I'm sure some hog operation would gladly take it off his hands.

[sewerrat]

Nothing new, been going on for years but here in farmer A has to much milk, and farmer B does not produce enough milk, farmer A can lease out his quota to farmer B.

I used to drive milk truck and there have been a few occasions where I had to dump 30.000l ( a tanker load) just because the taste was off ( stink weed), antibiotics, soap water or to curdled ( butter balls) from over agitation.

[Grizzly Adams1]

Originally Posted by jungleboy

This is not new news . This has been going on for years.

I follow an Ontario Farmer magazine and it seems Ontario has their own rules, Quebec again. Milk is a perishable commodity, buddy tells me there is a push for increased powdered milk productions to try and solve that. And of course, the Americans, who don't have a supply management system and a supply surplus they are looking for market for, are bitching for increased access to the Canadian market.

Grizz

[geezer55]

I used to drive milk truck and there have been a few occasions where I had to dump 30.000l ( a tanker load) just because the taste was off ( stink weed), antibiotics, soap water or to curdled ( butter balls) from over agitation.

Stink weed, soap in the milk and butterballs are all to be rejected at the farm, if you picked it up it is on you for picking up milk that should have been rejected. Only picking up antibiotic milk isn't on the truck driver milk grader as you can not detect it by sight or smell.
How do I know these things, I have been a truck driver milk grader for over 40 years.

[ClutchCanadian4]

Originally Posted by geezer55

Stink weed, soap in the milk and butterballs are all to be rejected at the farm, if you picked it up it is on you for picking up milk that should have been rejected. Only picking up antibiotic milk isn't on the truck driver milk grader as you can not detect it by sight or smell.
How do I know these things, I have been a truck driver milk grader for over 40 years.

If what this guy is saying is true and this milk is drinkable then why is it being dumped? Especially when more people then ever are struggling to buy groceries. Is it because of the cost to truck it and package it etc?

[geezer55]

In Canada there is milk quota that the farmers have to buy before they can milk a dairy herd. They know how much milk they are to ship within a certain period of time. If you go over the farmer has a penalty to pay and his was dumping good milk, as bad as that sounds the farmer knew what he is to ship and he went over.

[ClutchCanadian4]

Originally Posted by geezer55

In Canada there is milk quota that the farmers have to buy before they can milk a dairy herd. They know how much milk they are to ship within a certain period of time. If you go over the farmer has a penalty to pay and his was dumping good milk, as bad as that sounds the farmer knew what he is to ship and he went over.

But why are they limited? If your herd produces big milk numbers, shouldn't that be a good thing?

[wally338]

Originally Posted by ClutchCanadian4

But why are they limited? If your herd produces big milk numbers, shouldn't that be a good thing?

Dairy farmers in canada like free trade when buying but not when selling.

[geezer55]

The farmer buys an amount of quota and they have to ship that amount. If his herd is milking great and he shipping too much then he has to cull or dry up some of his cows to stay at the amount of quota he bought.
There isn't a free for all where farms ship whatever they want in Canada because of the quota system.

[Drewski Canuck]

The problem is not excess production that cannot be delivered, it is no alternative use for the milk. In days of old, farmers were often producing cattle, pigs, chickens, even vegetables, all on the same farm!!!!

What if there was a "side gig", say a small herd of about 80 hogs, which could then take the excess milk production, just like what was done in days of old?

But the farms are really food factories and are now very specialized. That is the downfall that sees alot of waste because no one has the interest in mixed farming.

Drewski

[wally338]

Originally Posted by ClutchCanadian4

If what this guy is saying is true and this milk is drinkable then why is it being dumped? Especially when more people then ever are struggling to buy groceries. Is it because of the cost to truck it and package it etc?

They would rather dump the "excess product" than lower the price of milk.

[dgl1948]

It is mainly to support small Quebec dairies who now also get a government subsidy after the last free trade agreement. Check where you milk comes from. Most of the milk sold in western Canada comes from Quebec. Expect another price increase in April when the carbon tax goes up. The milk does not walk here.

[Glion]

This is wrong.
I have explained supply management here before.
In this case it would be like me getting a 5000sqft job but ordering 10000sqft of material and complaining about it.
This farmer poorly managed his farm as it is not that difficult to ship the amount that you have paid to ship ie like a contract.
Fact is almost no country has seen milk prices drop after they get rid of supply management. Thought they do see suicide rates in dairy farmers skyrocket ie Australia.
Also dairy farmers do not set the price of milk in the store. Processors set a price to stores and they do their markup on top. Processors in Canada are very well off ie Saputo.
Also alot of countries that have gotten rid of supply management have now brought in "manure credits" so in the end the farmer can only milk as many cows as he has purchased manure credits.
Finally the US has lower prices of milk in some areas but there are a couple reasons biggest is that they get massive subsidies so you just end up paying for it with taxes so you dont feel it at the till.
US also doesnt have the same quality standards ie hormones for cows that are milking.
Anyway that farmer has done a poor job.

[ChrisGrohms]

Maybe its time to phase out the quota system....or at least make some drastic changes to it. IMO everyone wins when business is open for everyone.
I realize there is no easy solution but I do believe the supply manage system has run its course and is now costing the consumer much, much more than it should.

[HyperMOA]

Originally Posted by Glion

This is wrong.
I have explained supply management here before.
In this case it would be like me getting a 5000sqft job but ordering 10000sqft of material and complaining about it.
This farmer poorly managed his farm as it is not that difficult to ship the amount that you have paid to ship ie like a contract.
Fact is almost no country has seen milk prices drop after they get rid of supply management. Thought they do see suicide rates in dairy farmers skyrocket ie Australia.
Also dairy farmers do not set the price of milk in the store. Processors set a price to stores and they do their markup on top. Processors in Canada are very well off ie Saputo.
Also alot of countries that have gotten rid of supply management have now brought in "manure credits" so in the end the farmer can only milk as many cows as he has purchased manure credits.
Finally the US has lower prices of milk in some areas but there are a couple reasons biggest is that they get massive subsidies so you just end up paying for it with taxes so you dont feel it at the till.
US also doesnt have the same quality standards ie hormones for cows that are milking.
Anyway that farmer has done a poor job.

So why is it that dairy farmers are the only producer (that I’m aware of) to have to buy into a quota? No other agriculture sector works this way.

[KC1]

Originally Posted by HyperMOA

So why is it that dairy farmers are the only producer (that I’m aware of) to have to buy into a quota? No other agriculture sector works this way.

Dairy
Chicken
Eggs
Turkey

[HyperMOA]

Originally Posted by KC1

Dairy
Chicken
Eggs
Turkey

Are chickens under quota, or just eggs? I didn’t know eggs are under quota. Also, I’m pretty sure that any farmer can raise and sell chickens, turkeys and eggs. However, selling raw milk is illegal, is it not?

[Dewey Cox]

I think you can sell something like 900 chickens without quota.

[Grizzly Adams1]

Originally Posted by geezer55

In Canada there is milk quota that the farmers have to buy before they can milk a dairy herd. They know how much milk they are to ship within a certain period of time. If you go over the farmer has a penalty to pay and his was dumping good milk, as bad as that sounds the farmer knew what he is to ship and he went over.

Originally, when the quota was adopted, it was given out free, now it's among the most expensive part of setting up a dairy operation, there's even a brokerage that deals in it. That's how so many retired dairy farmers spend winters in the sunny south.

Grizz

[Dewey Cox]

Originally Posted by Dewey Cox

I think you can sell something like 900 chickens without quota.

Looks like it's 2000 birds

[lmtada]

This is a Cats dream. Supply all animal shelters milk……

[hayseed]

Originally Posted by Grizzly Adams1

Originally, when the quota was adopted, it was given out free, now it's among the most expensive part of setting up a dairy operation, there's even a brokerage that deals in it. That's how so many retired dairy farmers spend winters in the sunny south.

Grizz

This is so true, I know of many for sure who made a nest egg when they sold out

[1hogfarmer]

Originally Posted by pgavey

I'm sure some hog operation would gladly take it off his hands.

Yes sir!

[Glion]

Originally Posted by Grizzly Adams1

Originally, when the quota was adopted, it was given out free, now it's among the most expensive part of setting up a dairy operation, there's even a brokerage that deals in it. That's how so many retired dairy farmers spend winters in the sunny south.

Grizz

Quota is exchanged on a monthly exchange that you can bid on to purchase.
I look at it like property, many settlers got land for basically free but could sell it later. Not too many people are mad at generational ranches for this. But hey if these occupations are so nice and a ticket to an easy retirement I am surprised more of us aren't choosing to do it.

[Sundancefisher]

Not a fan of drinking the hormone laced milk from another mammal… however I just bought a 4 L jug of milk…. $9.15.

I’m sure they could lower the price. Sell more and bring costs down for consumers.

Monopolies suck.

[mass]

Price fixing, plain and simple.

[KGB]

Originally Posted by Sundancefisher

Not a fan of drinking the hormone laced milk from another mammal… however I just bought a 4 L jug of milk…. $9.15.

I’m sure they could lower the price. Sell more and bring costs down for consumers.

Monopolies suck.

$9.15? Holy crap man, where dd you shop? A liquor store? Are you sure it was just milk? Superstore sell it for just over $5.00

[EZM]

Originally Posted by Glion

This is wrong.
I have explained supply management here before.
In this case it would be like me getting a 5000sqft job but ordering 10000sqft of material and complaining about it.
This farmer poorly managed his farm as it is not that difficult to ship the amount that you have paid to ship ie like a contract.

Exactly - it's like he's crying over his own mismanagement and/or trying to guilt his customer (the dairy packager) into buying more than they agreed to buy.

In the meantime, if his customer does take his "excess milk" he drives the prices down and the supply up which hurts the entire industry.

I have ZERO sympathy for his wasteful overproduction. The waste is on HIS hands.