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| Change to the SCVQ: it’s time to take a stand | ||||
| Monthly article | ||||
| Surplus of solids non-fat | ||||
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EDITORIAL
Change to the SCVQ: it’s time to take a stand
by Marcel Groleau, Chairman, FPLQ
The quota price has been the subject of many discussions over the years, especially in recent years when its substantial growth has caused serious concern for producers worried about the negative impact this may have on young farmers and the development of dairy farms.
When it was established nearly twenty years ago, the Centralized Milk Quota System, known as the Système centralisé de vente des quotas (SCVQ), allowed all producers, anywhere in the province, to have access to quota at the same price. This system is simple to use, inexpensive and familiar to everyone.
However, in this system, the rule of the highest bidder determines the price of quota. We have seen prices in the vicinity of $32,000/kg. In some provinces, the price is currently nearing $35,000/kg. High quota prices do not serve people who are in production to stay.
The delegates held a day of discussion on this issue in November 2003. Three proposals intended to favour a reduction in the quota price were studied. None of the three proposals was eliminated and a broad-based consultation of all producers followed.
The proposal that will be submitted to you during the consultation day was developed afterwards. It is the result of a compromise that combines the most interesting aspects of the different proposals examined. It also contains the suggestions made by producers at various meetings.
This proposal has the advantage of being inspired by the existing system and is therefore easy to understand. The ceiling price of $26,000, which cannot be exceeded, is close to the current market price. It will remain unchanged for 24 months, which will allow some stability.
Since we have begun discussing this issue, priority has been given to spreading information. Lately, all producers received a pamphlet explaining the proposal on which you are being asked to decide. Finally, the proposal will be presented in detail at the meetings called for this purpose, before the vote is held.
We can be proud of our success, over the past year, in discussing this delicate issue so calmly. We are being observed by the other provinces, which are following our consultations with interest. Producers in other provinces are living with the same situation as we are and are waiting to see what choice we make.
We have now reached the end of this consultation process. Pay close attention to the notice you will receive and turn out in force to take a stand on this important issue for our collective marketing system.
