[UPDATED: May 4, 2020] A reduction in quota has ended the need to dump milk, says Alberta Milk.
Changes in demand in March, caused by the pandemic, led to a surplus of milk in March. But a total production cut of about five per cent – comprised of a three per cent cut in quota and a two-day credit day restriction – imposed on April 1 brought supply into line.
As of April 11, milk was no longer being dumped, said Karlee Conway, spokesperson for Alberta Milk.
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“The policies were really effective,” said Conway.
The quota reduction was extended on April 29 by the board of Alberta Milk.
“That reduction is meeting the demand for dairy in Alberta,” she said. “Supply chain issues are still in existence, but I think it’s something we’re trying to work through as an industry.
“We’re really lucky that there have been no major issues with the supply chain, like the milk processors.”
The quota reduction means there are likely more dairy cows being culled at a time when temporary closures and slowdowns are reducing cattle slaughter.
“We’re working with processors to try and navigate those concerns that are happening with Cargill and JBS,” said Conway. “It’s not much of an issue for us right now, but it’s on our radar.”
Update: the article previously mentioned a production cut of five per cent.
