Domestic Seasonality Programs

The Domestic Seasonality Programs aim to balance the seasonal demand and supply of products for the domestic market.

When there is more milk produced than the Canadian market needs, the Canadian Dairy Commission (CDC) buys butter and skim milk powder from processors at established support price levels. When the Canadian market wants more milk, these stocks are returned to the market at current support prices.

Eligibility Criteria

Milk processors.

Eligible Activities

• Production of evaporated and sweetened condensed milk.
• Production of skim milk powder.
• Production of butter and butteroil.

Summary

A pre-determined "normal" level of butter stocks is set as a target level deemed to be a necessary reserve to ensure the domestic market is supplied throughout the year. Within this level, a small quantity of Plan A bulk butter stocks is held as a buffer against seasonal deficiencies in the domestic market. Plan B is used by firms to balance the seasonality of their production and sales over the calendar year.

Manufacturers are encouraged to produce evaporated and sweetened condensed milk during periods of the year when milk supply exceeds domestic needs, and are offered financial assistance under the Canadian Milk Assistance Program to offset costs associated with additional product storage time. A Plan B program for skim milk powder encourages the production of various specialty types of skim milk powder when milk supplies are plentiful, thereby minimizing the demand for fresh skim milk solids in the fall when milk production is traditionally low.

Producers pay the total storage, transportation and interest costs incurred by the CDC on butter above the normal stock level, and other domestic seasonality programs.

New Brunswick Contact(s):
See National Contact.

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National Contact(s):
Ms. Carole Cyr
Communications Officer
Canadian Dairy Commission
Building 55, NCC Driveway
Central Experimental Farm
960 Carling Avenue
Ottawa, Ontario  K1A 0Z2
Telephone: 613-792-2000
Fax: 613-792-2009
Toll-free (information): 1-866-366-0676
TTY (hearing impaired): 613-792-2082
E-mail: ccyr@agr.gc.ca
Web site: http://www.cdc-ccl.gc.ca/cdc/index_en.asp?caid=85