P5 Message – Reduction for August and September Incentive Days
Due to a recent and unexpected decrease in market requirements, the P5 Boards have agreed to reduce the incentive days for the month of August by two days and for the month of September by one day, for a total of 1 day – August and 2 days - September. A slowdown in retail markets, a slower than expected recovery in the food service sector and unanticipated reduction in plant orders caused by various constraints at the processor level, mainly explains this change. At this time no change is being made to the incentive days of the other subsequent months. The situation will be reassessed according to the change in demand. However, given these uncertain times we will continue to adapt production signals to address market changes, as required. In addition, effective August 1, 2021 there will be an over quota penalty of $20/hl. The P5 board’s primary objective is to continuously monitor the milk market situation and meet milk market demand in the most optimal way.