EFFECTIVE AUGUST 1, 2009
SASKATCHEWAN MILK CONTROL BOARD
CONTINUOUS DAILY QUOTA POLICY
PART I - Definitions
For the purpose of the policies outlined in this document, the following definitions apply:
a) “Board” means the Saskatchewan Milk Control Board;
b) “catastrophe” includes severe illness or death of the registered quota holder; destruction
of the production facilities; severe infection of the producing herd by an uncontrollable
disease or by a disease which results in a requirement from health authorities that the
herd be slaughtered; or any hardship suffered by a quota holder that the Board considers
to be similar in nature to the ones listed above;
c) “complete dairy unit” means a continuously operative dairy farm business, including all
lands and buildings and milking cows used in the operation of the business;
d) “credit days” are calculated by dividing a producer’s cumulative credits by daily quota;
e) “credits” means the difference between a producer’s actual production and daily quota
allocation, (in kgs of butterfat);
f) “cumulative credits” are the total credits accumulated by a producer, including transfer
g) “daily quota” means a fluid and market sharing quota in kilograms of butterfat allocated
to a producer by the Board, per day;
h) “direct transfer” means the transfer of daily quota directly between two producers; it
excludes transfers through the Quota Exchange. In all cases, direct transfers require
i) “immediate family” means a grandfather, grandmother, father, mother, husband, wife,
son, daughter, brother, sister, grandson, granddaughter, son-in-law or daughter-in-law;
j) “incentive day credits” are temporary quota allocations that are intended to stimulate
production for a specific month;
k) “monthly quota allocation” is daily quota multiplied by pick-up days;
l) “negative credit limit” is the maximum negative cumulative credits that may be
accumulated by a producer;
m) “positive credit limit” is the maximum positive cumulative credits that may be
accumulated by a producer;
n) “pick-up days” are used to determine a producer’s monthly quota allocation. Pick-up
days are calculated by determining the number of days from the last pick-up of the
previous month to the last pick-up of the current month;
o) “pro-rata” means calculated on a proportionate share, based on kilograms of butterfat;
p) “producer” means:
(i) an individual who maintains cattle for the purpose of producing qualifying milk
and has obtained any approvals and licenses that may be required pursuant to the
regulations made pursuant to The Animal Products Act and The Public Health Act, 1994;
(ii) a partnership, association or corporation whose members or shareholders are
personally engaged in the day to day operation of a production unit that maintains cattle
for the purpose of producing qualifying milk and has obtained any approvals and
licenses that may be required pursuant to the regulations made pursuant to The Animal
Products Act and The Public Health Act, 1994;
q) “total production quota” (TPQ) see “daily quota”;
r) “transfer credits” are negative credits that are transferred from one producer to another
to change each producer’s cumulative position.
PART II - Registration
Page 2 of 13
All producers must register with the Board. Only one registration number shall be allotted to each complete dairy unit, even if there are multiple owners.
PART III - Continuous Daily Quota Maintenance Policy
; On August 1, 2009, each producer’s annual quota allocation will be converted to a daily
quota as follows:
Annual Total Production Quota ? 365 days = daily quota
This conversion does not change a producer’s total production quota, just the basis on
which it is measured.
; Daily quota will be allocated on a monthly basis, by multiplying daily quota by pick-up
daily quota × pick-up days = monthly quota allocation
; Monthly quota allocation will be measured against actual butterfat production to
determine a producer’s credit position. Over-production will be referred to as positive
credits, while under-production will be referred to as negative credits.
actual butterfat production – monthly quota allocation
= credits for the month
Credits accumulated on a monthly basis, both positive and negative, will be combined to
determine a producer’s cumulative credit position which is carried forward indefinitely;
there is no dairy year end.
; The cumulative credit position will be divided by the current month daily quota
allocation to determine the credit day position.
cumulative credit position ? current month daily quota
= credit days
PART IV - Credit Days
Page 3 of 13
Positive Credit Days
; The positive credit day limit +10 days.
; Producers may accumulate up to +10 credit days and receive full payment for those
; Credit days produced in excess of the +10 credit day limit (excess kilograms of butterfat)
will receive zero payment, with the revenue from this excess production being shared by
all producers in the monthly pool. This excess production will be subject to all relevant
deductions. The credit day position carried forward to the next month will be capped at
+10 days. Producers cannot recoup these dollars in future months.
Negative Credit Days
; The negative credit day limit is -30 days.
; Producers may accumulate up to -30 credit days without penalty.
; Credit days accumulated in excess of -30 days are deemed to be lost production
opportunity and cannot be carried forward by a producer. There is no opportunity to
recoup lost negative credit days in future months. This lost production will not be
reallocated to other producers.
PART V - Incentive Day Credits
To stimulate production, the Board may issue incentive day credits. Incentive day credits are used