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PROVINCE OF BRITISH COLUMBIA THE MILK BOARD ANNUAL REPORT For the Year ended December 31st 1948 British Columbia. Legislative Assembly 1949

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Full Text

 PROVINCE   OF   BRITISH  COLUMBIA
THE MILK BOARD
ANNUAL REPORT
For the Year ended December 31st
/
r
1948
VICTORIA,   B.C. :
Printed by Don McDiarmid, Printer to the King's Most Excellent Majesty.
1948.  To His Honour the Lieutenant-Governor in Council
of the Province of British Columbia.
May it please Your Honour :
Sir,—I have the honour to transmit herewith, in accordance with section 64 of the
" Public Utilities Act," the Third Annual Report of the Milk Board for the year ended
December 31st, 1948.
E. C. CARR,
Chairman, Milk Board.
Vancouver, B.C., February 7th, 1949.  ANNUAL REPORT OF THE MILK BOARD
For the Year ended December 31st, 1948
(being the Third Annual Report of the Board).
At the beginning of 1948, production and distribution of fluid milk was still in a
very unsettled position. Following public hearings in all areas in which the Board
exercises its jurisdiction, held in October, 1947, an increase of 1 cent a quart was
ordered in consumer rates, with corresponding adjustments in producer returns effective November 1st of that year. However, just as these increases became effective,
the Federal Government discontinued payment of the hold-back or subsidy on feed-
grains and also removed the ceiling prices thereon. The result was sharply rising
costs of these feeds. Other items affecting the cost of production also continued to
rise in price. Milk-dealers also found that their costs for processing and distributing
milk continued to advance. One of the chief factors in this regard was the cost of
labour. Contracts negotiated or in the process of negotiation for 1948 indicated overall increases in monthly wages from $10 to $12.50, with provisions for further adjustments in relation to the cost-of-living index. Increases in freight rates which took
place during the early part of the year did not add to the cost of feed-grains. Transportation of these products is still paid for by the Federal Government. However, the
increased cost of freight was reflected in the prices of all other feeds, equipment, and
supplies required by both producers and milk-dealers.
Based on these factors, both primary producers and milk-dealers in all areas made
applications for further adjustments in the rates they were receiving. Inquiries and
investigations by and on behalf of the Board substantially confirmed these conditions,
and in view of the fact public hearings had been held in all areas during October, 1947,
it was first decided that these applications would be dealt with without further hearings. However, due to unforeseen developments, this decision was reversed, and a
public hearing was held in the City of Vancouver on March 4th, and one in the City of
Victoria, to deal with the applications from the Greater Victoria, Duncan, and Nanaimo
areas, on March 8th.
On June 10th the Board rendered a decision relative to these applications. This
decision recommended an increase in rates for milk and milk products in all areas
concerned. Orders to implement these adjustments were approved by Order in Council
No. 1308, to become effective on June 16th. Since that date there has not been any
change in the rate schedules covering fluid dairy products regulated by the Board.
Increases in the price of any commodity tends to depress sales. Milk is not an
exception. While the Board has only statistical information for the years 1947 and
1948 (the Board started operation on July 2nd, 1946), indications are that since the
last price adjustment some reduction has taken place in the consumption of fresh fluid
dairy products. A detailed summary of monthly sales of milk and milk products for
the years 1947 and 1948 is given in Table I appended to this Report. A statement
showing increases and decreases in both retail and wholesale sales of the various products, 1948 as compared with 1947, is given in Table II. Table III lists prices of dairy
feeds at October 15th, 1947; June 1st, 1948; and December 31st, 1948. A summary is
also given of retail quart prices for standard milk which were in effect in the larger
urban markets throughout the Dominion as at December 31st. HH 6
BRITISH COLUMBIA.
AREAS UNDER THE CONTROL OF THE BOARD.
No new areas became subject to the provisions of the " Public Utilities Act"
respecting milk during the year. The four controlled areas within the Province are
the Greater Victoria, Vancouver, Duncan, and Nanaimo areas.
BOARD MEETINGS.
The Board held three public hearings during the year, as follows: Vancouver,
March 4th;  Victoria, March 8th;  and Merritt, September 16th.
In addition, twenty-seven regular meetings of the Board were held to deal with
matters of policy and administration. Complete minutes of all these meetings are
recorded in the minute-book of the Board. Throughout the year, numerous conferences
were also held with producers, milk-dealers, and others in all areas to discuss various
matters pertaining to the production, supply, distribution, and sale of milk.
LICENSING.
Pursuant to Order No. 6, licences are issued for a period of twelve months or
portion thereof ending on March 31st of the period in respect of which they are issued.
A summary of 1948-49 licences issued, cancelled, and in effect at December 31 st
follows:—
Class I, Milk-dbaleb.
Class II, Milk-jobber.
Class III,
Producer-Distributer.
Class IV,
Primaby Producer.
Area.
Issued.
Cancelled.
In
effect
Dec. 31,
1948.
Issued.
Cancelled.
In
effect
Dec. 31,
1948.
Issued.
Cancelled.
In
effect
Dec. 31,
1948.
Issued.
Cancelled.
In
effect
Dec. 31,
1948.
32
10
1
3
1
2
31
8
1
s
8
4
1
7
4
62
45
5
10
10
3
1
1
42
42
4
9
4,092
263
47
46
121
10
1
3,971
Greater Victoria....,
253
46
46
Totals
46
3
43
12
1
11
112
15
97
4,448
132
4,316
Of the licences cancelled, one milk-dealer discontinued business and two sold out to
other licensed milk-dealers. The holder of the only Class II licence cancelled sold his
business to a milk-dealer. Two holders of two Class III licences discontinued producing their own milk and obtained Class I licences. Seven producer-distributers discontinued distributing their milk and obtained Class IV licences, and six sold their distributing businesses to licensed milk-dealers. The cancellations of Class IV licences
were largely because holders either sold their farms or discontinued producing milk.
There was not any licence in any class cancelled for cause.
SUMMARY OF APPLICATIONS RECEIVED AND ORDERS ISSUED.
Order No. 19.—Application having been received from primary producers and
milk-dealers for an increase in the rates received for milk supplied in the Greater
Victoria area, the Board held a public hearing in the City of Victoria on March 8th,
1948. Order No. 19 (approved by Order in Council No. 1308) was issued, to become
effective on June 16th. This order provided for an increase in both producer and
consumer rates.
Order No. 20.—Application having been received from primary producers and
milk-dealers for an increase in the rates received for milk supplied in the Vancouver
area, the Board held a public hearing in the City of Vancouver on March 4th.    Order REPORT OF THE MILK BOARD, 1948. HH 7
No. 20 (approved by Order in Council No. 1308) was issued, to become effective on
June 16th.    This order provided for an increase in both producer and consumer rates.
Order No. 21.—Application having been received from primary producers and
milk-dealers for an increase in the rates received for milk supplied in the Duncan area,
the Board held a public hearing in the City of Victoria on March 8th. Order No. 21
(approved by Order in Council No. 1308) was issued, to become effective on June 16th.
This order provided for an increase in both producer and consumer rates.
Order No. 22.—Application having been received from primary producers and
milk-dealers for an increase in the rates received for milk supplied in the Nanaimo
area, the Board held a public hearing in the City of Victoria on March 8th. Order
No. 22 (approved by Order in Council No. 1308) was issued, to become effective on
June 16th.    This order provided for an increase in both producer and consumer rates.
Following receipt of an application from the manufacturers and wholesale distributers of ice-cream in the Vancouver area to have the Board regulate the wholesale
marketing of ice-cream in that area, a hearing was held in the City of Vancouver on
August 9th to receive representations respecting this application. Final decision in
this matter has not yet been made.
Following receipt of an application from the Corporation of the City of Merritt
for the Board to inquire into the matter of an adequate supply of fresh milk in the
City of Merritt, a public hearing was held in that city on September 16th. It was
decided that the services of the Board were not required in this area.
CONCLUSION.
At the close of the year the industry appears to have developed stability, and
current trends do not indicate any immediate changes in price-level. The threat of
serious disruption of the supply of fluid milk for the Vancouver market due to flood
conditions did not materialize. Many primary producers had their production programme interrupted, and, as may be expected, some financial losses were incurred.
However, efficient work on the part of the producers themselves, those in charge of
flood-control, the housing and feeding of dairy cattle which had to be evacuated in
flooded areas, and from the co-operation of marketing associations, trucking concerns,
and milk-dealers, these losses were kept at a minimum. The effective rehabilitation
programme instituted by the Federal and Provincial Governments has, to a great extent,
enabled the loss in production to be restored, and the continuity of supply in not only
the Vancouver area, but also in those areas on Vancouver Island and in the Interior
of the Province which depend on supplies from the Lower Mainland during the winter
months has been maintained.
The Board wishes to express its appreciation for the co-operation of those engaged
in the industry as producers and milk-dealers, to officials of other government departments, and to the public as a whole. Such co-operation has greatly contributed to any
success which may have attended the efforts of the Board and its staff during the year.
li HH 8
BRITISH COLUMBIA.
STATISTICAL TABLES.
Table Ia.—Sales, Vancouver Area.
Month.
Standard
Milk.
Special
Milk.
Chocolate-
Flavoured
Dairy
Drink.
Buttermilk.
Skim-
milk.
Substandard
Cream (9%
Butter-
fat).
Table
and Sour
Cream
(18%
Butter-
fat).
Whipping
Cream
(32%
Butter-
fat.)
1947.
January	
February	
March	
April	
May	
June	
July	
August	
September	
October	
November	
December	
Totals	
1948.
January	
February	
March	
April	
May	
June	
July	
August	
September	
October	
November	
December	
Totals	
3,802,818
3,563,419
3,962,549
3,800,938
3,992,174
3,714,549
3,885,124
3,905,213
3,821,343
3,927,149
3,798,885
3,842,935
46,017,096
3,966,720
3,791,830
4,063,795
3,994,981
4,032,011
4,059,405
4,111,787
4,095,584
3,997,640
4,137,406
3,880,754
3,992,038
48,123,951
1,202,091
1,111,707
1,249,552
1,144,382
1,181,758
1,065,590
1,117,782
1,141,328
1,101,092
1,134,047
993,088
991,230
49,584
53,799
62,103
55,593
81,871
74,626
68,301
75,493
92,183
115,721
84,949
69,091
43,059
44,221
55,064
58,936
68,464
85,029
75,479
71,744
59,167
53,108
44,612
42,358
41,606
53,941
61,249
86,204
97,812
82,490
81,720
86,527
72,373
67,065
53,145
59,533
556,087
526,463
576,182
540,568
540,440
490,164
476,043
472,312
459,804
474,014
442,783
435,623
46,124
45,242
49,694
74,166
77,059
75,295
77,041
78,158
72,214
72,733
68,711
77,279
13,433,647
883,314
701,241
843,665
5,990,483
813,716
1,001,188
948,159
986,660
968,546
940,977
876,589
797,184
789,356
764,333
793,949
777,156
772,509
74,139
75,974
85,128
94,734
103,017
118,984
83,582
76,218
98,586
113,722
101,050
76,971
46,091
43,913
51,005
56,449
63,105
78,027
70,138
58,419
47,060
46,238
41,929
39,220
59,802
55,920
76,609
85,986
85,545
89,299
82,323
74,350
64,603
62,932
58,021
61,294
487,218
463,451
484,975
466,573
446,324
425,387
442,697
439,109
429,743
459,324
453,757
473,973
72,361
65,458
70,775
66,871
62,243
59,930
63,102
60,253
56,301
56,977
52,589
57,549
10,416,606
1,102,105
641,594
856,684
5,472,531
744,409
19,760
19,186
31,096
20,819
18,503
16,334
18,559
17,816
22,310
185,383
22,337
22,759
25,869
24,287
23,527
28,414
25,836
19,025
17,638
23,007
21,273
29,356
283,328
Notes.—1. There were no sales of whipping cream in January, February, and March, 1947.
2. Figures for sales in November and December, 1948, subject to minor adjustments. REPORT OF THE MILK BOARD, 1948.
HH 9
Table Ib.—Sales, Victoria Area.
Month.
Standard
Milk.
Special
Milk.
Chocolate-
Flavoured
Dairy
Drink.
Buttermilk.
Skim-
milk.
Substandard
Cream (9%
Butter-
fat).
Table
and Sour
Cream
(18%
Butter-
fat).
Whipping
Cream
(32%
Butter-
fat.)
1947.
772,021
745,461
840,682
736,909
789,206
724,920
769,235
755,369
725,085
752,078
724,620
730,614
257,391
262,915
257,405
247,480
249,902
226,781
229,007
238,927
229,323
242,299
205,953
214,752
8,087
8,476
8,059
8,930
11,497
10,007
9,222
9,474
11,070
9,782
8,867
7,587
3,334
4,005
4,810
4,391
4,518
4,870
5,024
4,923
3,824
3,476
3,632
3,543
758
729
714
968
1,075
1,087
3,999
811
683
1,049
2,829
2,785
51,704
53,827
57,994
56,840
57,549
53,937
54,661
54,291
52,061
51,287
48,035
51,056
16,790
16,435
17,650
17,869
17,556
16,792
17,241
17,382
14,184
12,938
11,867
12,572
6,182
5,443
10,261
July	
7,163
6,820
5,330
5,530
5,329
7,048
Totals	
9,066,200
2,862,135
111,058
50,350
17,487
643,242
189,276
59,106
1948.
744,438
689,179
740,102
711,761
749,289
722,292
771,293
748,673
724,983
745,029
721,610
737,804
225,695
212,568
226,700
216,062
223,992
204,549
182,855
184,749
177,149
190,364
186,604
189,676
7,364
6,866
7,809
10,397
10,635
10,966
9,709
8,608
9,101
10,747
9,122
11,828
3,690
4,095
4,607
4,964
5,600
5,252
5,635
4,920
4,347
4,561
2,860
4,222
2,426
2,588
2,844
3,104
4,276
4,215
4,180
3,951
3,549
3,828
3,246
3,573
50,764
47,612
53,537
51,017
50,740
46,878
51,001
50,831
49,965
51,463
50,875
53,917
10,863
10,406
11,398
10,614
10,220
10,034
11,220
10,838
9,794
8,893
8,029
9,368
6,218
February	
6,125
7,282
6,598
6,650
9,635
July	
8,722
6,846
6,152
6,196
5,596
6,954
Totals	
8,806,453
2,420,963
113,152
54,753
41,780
608,600
121,677
82,874
Notes.—1. There were no sales of whipping cream in January, February, and March, 1947.
2. Figures for sales in November and December, 1948, subject to minor adjustments. HH 10
BRITISH COLUMBIA.
Table Ic.—Sales, Duncan Area.
Month.
Standard
Milk.
Special
Milk.
Chocolate-
Flavoured
Dairy
Drink.
Buttermilk.
Skim-
milk.
Substandard
Cream (9%
Butter-
fat).
Table
and Sour
Cream
(18%
Butter-
fat).
Whipping
Cream.
(32%
Butter-
fat.)
1947.
39,829
36,230
35,874
36,872
54,169
4,830
8,623
9,451
6,939
8,933
66
169
317
145
872
463
453
539
518
430
943
704
956
953
1,085
202
200
252
15
19
217
430
Totals	
202,974
38,776
1,569
34
2,403
4,641
1,301
1948.
35,746
34,410
36,660
33,634
36,247
36,763
37,808
36,416
34,024
33,887
31,545
35,210
9,062
9,348
10,313
10,294
9,961
9,185
8,634
8,818
8,856
10,071
10,045
6,706
64
154
293
176
175
175
27
515
605
580
506
668
405
283
326
386
416
449
477
829
638
846
825
635
542
680
606
592
590
566
531
192
259
289
274
287
95
42
29
79
108
81
60
420
92
501
391
211
266
198
244
349
725
929
620
417
349
465
Totals	
■      422,350
111,293
3,338
494
1,011
5,616
7,879
4,193
Note.—Figures for sales in November and December, 1948, subject to minor adjustments.
* Board started operation in Duncan area on August 1st, 1947.
Table Id.—Sales, Nanaimo Area.
Month.
Standard
Milk.
Special
Milk.
Chocolate-
Flavoured
Dairy
Drink.
Buttermilk.
Skim-
milk.
Substandard
Cream (9%
Butter-
fat).
Table
and Sour
Cream
(18%
Butter-
fat).
Whipping
Cream
(32%
Butter-
fat.)
1947.
112,640
93,337
91,578
85,251
88,699
19,664
25,688
25,736
24,649
19,309
464
676
857
605
649
320
358
240
160
160
361
120
3,894
2,217
2,295
2,139
2,057
559
1,852
2,072
1,893
1,954
416
312
203
111
138
332
510
Totals	
471,505
115,046
3,151
1,238
730
12,602
8,330
1,773
1948.
93,699
89,836
92,974
91,394
97,105
95,734
99,753
101,409
100,273
105,883
105,969
110,058
21,353
21,196
23,292
26,233
24,716
22,685
20,779
20,667
19,320
19,941
18,426
16,108
1,180
1,486
1,690
1,239
1,138
1,315
650
1,369
524
1,373
2,465
2,121
100
120
320
360
300
240
216
168
160
184
192
128
125
169
195
432
579
668
72
39
13
59
38
15
2,114
1,889
1,926
2,083
2,214
2,003
2,456
2,441
2,289
2,351
2,150
2,183
1,828
1,799
1,946
1,887
2,048
1,812
1,787
1,943
2,213
2,851
2,498
2,618
364
341
647
634
674
766
July	
733
701
451
589
671
659
Totals	
1,184,087
254,715
16,550
2,488
2,404
26,099
25,130
7,030
Note.—Figures for sales in November and December, 1948, subject to minor adjustments.
* Board started operation in Nanaimo area on August 1st, 1947. REPORT OF THE MILK BOARD, 1948.
HH 11
Table Ua.—Sales, Vancouver Area, 1948 as compared to 1947.
Product.
Retail.
Wholesale.
Total Sales.
Standard Milk—
1948	
Quarts.
31,563,795
29,474,018
Quarts.
16,560,156
16,543,078
Quarts.
48,123,951
1947	
46,017,096
Special Milk—
1948	
2,089,777*
(7.09%)
8,295,010
10,542,823
17,078*
(0.1%)
2,121,596
2,890,824
2,106,855*
(4.58%)
10,416,606
1947	
13,433,647
Chocolate-flavoured dairy drink—
1948	
2,247,813t
(21.32%)
401,345
233,332
769,228t
(26.61%)
700,760
649,982
3,017,041f
(22.46%)
1,102,105
1947	
883,314
Buttermilk—
1948	
168,013*
(72%)
219,381
227,216
50,778*
(7.81%)
422,213
474,025
218,791*
(24.77%)
641,594
701,241
1947 	
Skim-milk—
1948	
7,835f
(3.44%)
201,361
164,112
51,812t
(10.93%)
655,323
679,563
59,647f
(8.51%)
856,684
1947	
843,665
Substandard cream—
1948	
37,249*
(22.7%)
1,945,470
2,158,807
24,230t
(3.57%)
3,527,061
3,831,676
13,019*
(1.54%)
5,472,531
5,990,483
1947	
Table and sour cream—
1948	
213,337t
(9.88%)
188,970
178,321
304,615t
(7.95%)
555,439
635,395
517,952f
(8.65%)
744,409
813,716
1947 «.	
Whipping cream—
1948	
10,649*
(5.97%)
91,729
62,798
79,956t
(12.58%)
191,599
122,585
69,307t
(8.52%)
283,328
185,383
1947 „	
28,931*
(46.06%)
69,014*
(56.3%)
97,945*
(52.83%)
: Increase.
f Decrease.
' HH 12
BRITISH COLUMBIA.
Table IIb.—Sales, Victoria Area, 1948 as compared to 1947
Product.
Retail.
Wholesale.
Total Sales.
Standard Milk—
1948	
Quarts.
5,881,755
6,549,386
Quarts.
2,924,698
3,516,814
Quarts.
8,806,463
1947	
9,066,200
Special Milk—
1948	
332,369*
(5.99%)
2,194,762
2,550,688
692,116t
(16.84%)
226,201
311,447
259,747t
(2.87%)
2,420,963
1947	
2,862,135
Chocolate-flavoured dairy drink—
1948	
355,926t
(13.95%)
17,708
9,816
85,246t
(27.37%)
95,444
101,242
441,172t
(15.41%)
113,152
1947 	
111,058
Buttermilk—■
1948	
7,892*
(80.4%)
36,528
33,218
5,798t
(5.72%)
18,225
17,132
2,094*
(1.88%)
54,753
1947 	
50,350
Skim-milk—
1948	
3,310*
(9.96%)
21,920
13,087
1,093*
(6.38%)
19,860
4,398
4,403*
(8.74%)
41,780
1947	
17,487
Substandard cream—
1948	
8,833*
(67.49%)
201,414
203,863
15,462*
(351.57%)
407,186
439,389
24,293*
(138.92%)
608,600
1947	
643,242
Table and sour cream—
1948	
2,439f
(1.2%)
35,356
50,294
32,203t
(7.32%)
86,321
138,982
34,642f
(5.39%)
121,677
1947	
189,276
Whipping cream—
1948 .>	
14,938f
(29.7%)
29,783
21,827
52,661t
(37.89%)
53,091
37,279
67,599f
(36.71%)
82,874
1947 '..	
69,106
7,956*
(36.45%)
15,812*
(42.41%)
23,768*
(40.21%)
* Increase.
f Decrease. REPORT OF THE MILK BOARD, 1948.
HH 13
Table III.—Pick-up Prices for Dairy Feeds at Vancouver, B.C
Oct. 15, 1947.
June 1,1948.
Dec. 81, 1948.
Per Ton.
$39.00
40.00
39.00
35.00
37.00
40.00
42.00
43.00
44.00
40.00
Per Ton.
$53.00
55.00
53.00
59.00
61.00
64.00
66.00
61.00
89.00
69.00
59.00
37.00
39.00
31.00
Per Ton.
$55.00
58.00
Wheat (Grade 5)            	
71 00
52.00
54.00
Oats	
53.00
55.00
Dairy feed (16%)          . ..
61.00
89.00
69.00
59.00
39.00
42.00
37.00
Table IV.—Retail Quart Prices for Standard Milk at December 31st, 1948.
Halifax, N.S	
Sydney, N.S. 	
Saint John, N.B.	
Montreal, P.Q  17%
Toronto, Ont  18
Cents.
_ 19
. 20
. 18
Winnipeg, Man.
17
Cents.
Regina, Sask.  17
Saskatoon, Sask.   17
Edmonton, Alta.   17
Calgary, Alta.   17
Vancouver, B.C.   17
Victoria, B.C.   19
VICTORIA,  B.C. :
Trinted by Don McDiarmid, Printer to the King's Most Excellent Majesty.
1949.
520-249-7732   

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