P5 Additional Production Days


Production & Market Update

While there is still growth in market demand, production is above current and projected market demand. The large number of underproduction credits held by P5 producers could increase this production and market imbalance. 

As a result of high production levels in relation to demand, the May butter stocks are at 43,000 tonnes, which is well above the 35,000 tonne target.

For these reasons, the P5 Boards are taking the following measures, effective July 1, 2018: 

1.  Reduce quota issued to all producers by 1.5%. Additionally provinces will either further reduce the quota issuance for all        producers by 2.0% OR limit production credit day usage to 1 day/month; and

2.  Eliminate previously announced Fall 2018 incentive days for conventional producers only; and

3.  Implement an over quota penalty of $20/hl to be applied on production over +10 days in Ontario and the Maritimes.







Quota reduction effective July 1, 2018

3.5 %




1.5 %

Incentive days

(Aug to Nov)







Ontario will implement the following measures for all producers:

4.  Effective July 1, 2018, temporarily limit the number of production credit day usage to 1 day/month.  This measure will be reviewed periodically by the P5 Quota committee and the P5 Boards.

5.  Implement an over quota penalty of $20/hl to be applied on production over +10 days and if production credit usage exceeds 1 day/month.

Quebec is also committed to work towards the regulatory changes to implement measures 4. and 5. above no later than December 1st, 2018. The Maritime Provinces will evaluate implementation of measures 4. and 5. When a province implements the monthly production credit day limitation policy and the over quota penalty, there will be an offsetting quota adjustment.

The P5 Quota Committee considers that a 1 day/month production credit limitation is equivalent to a 2% quota reduction for all P5 provinces. Notwithstanding the temporary variations in this decision, the P5 Boards remain committed to a harmonized quota policy and a common quota issuance level across the pool.

Organic producers will receive incentive days as shown in the table below.  

The P5 Quota Committee will continue to monitor milk production and the market evolution for the months to come and will determine if further measures will be required.


Month  Conventional  Organic 
March 2018 
April 2018 
May 2018 
June 2018 
July 2018 
August 2018 
September 2018 
October 2018 
November 2018 
December 2018 
January 2019 
February 2019 
March 2019