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THE MILK BOARD ANNUAL REPORT for the YEAR ENDED DECEMBER 31 1971 British Columbia. Legislative Assembly 1972

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 PROVINCE OF BRITISH COLUMBIA
THE MILK BOARD
ANNUAL REPORT
for the
YEAR ENDED DECEMBER 31
1971
Printed by K. M. MacDonald, Printer to the Queen's Most Excellent Majesty
in right of the Province of British Columbia.
1972
  To His Honour the Lieutenant-Governor in Council
of the Province of British Columbia
May it please Your Honour:
Sir: We have the honour to transmit herewith, in accordance with section 56 of
the Milk Industry Act, the Twenty-sixth Annual Report of the Milk Board under that
Act for the year ended December 31, 1971.
THE MILK BOARD
E. D. Daum, Chairman
J. D. Honeyman, Member
C. H. P. Killick, Member
Vancouver, British Columbia, February 18, 1972.
  Twenty-sixth Annual Report of the Milk Board
For the Year Ended December 31, 1971
This Report of the Milk Board is made in accordance with section 56 of the
Milk Industry Act and covers the calendar year ended December 31, 1971.
The format of this Report and the related statistical information is considerably
changed from that of previous years. The Board is of the opinion the changes
implemented provide not only additional pertinent information but present it in a
more meaningful form.
LEGISLATION
Milk Industry Act
There were not any amendments passed during the 1971 Session of the
Legislature.
Milk Board General Orders
General Order 48 (B.C. Reg. 119/71), made on April 23, 1971, amending
General Order 46 (B.C. Reg. 126/70), came into operation on May 1, 1971. The
effect of this order was to repeal General Order 47 (B.C. Reg. 305/70) and establish
the new base period of 1961-70 and the new base-period values. The order also
increased the Class III accounting value by 25 cents from $3,460 per hundred
pounds to $3,710 per hundred pounds. This change was necessitated by a 4-cent-
per-pound increase in the support price for skim-milk powder and cheddar cheese
announced by the Canadian Dairy Commission on February 5, 1971.
General Order 49 (B.C. Reg. 256/71), made on October 22, 1971, further
amending General Order 46 (B.C. Reg. 126/70), came into operation on October 1,
1971. This order increased the butterfat differential for all classes of utilization as
well as increasing the Class II accounting value 10.5 cents from $2,292 per
hundred pounds to $2,397 per hundred pounds and increasing the Class III accounting value 24 cents from $3,710 per hundred pounds to $3,950 per hundred pounds.
These changes were necessitated due to further increases in the support price for
butter, skim-milk powder, and cheddar cheese announced August 12, 1971, by the
Canadian Dairy Commission. These latest increases announced by the Canadian
Dairy Commission were as follows: For butter, 3 cents per pound; for skim-milk
powder, 2 cents per pound; for cheddar cheese, 3 cents per pound.
MILK BOARD MEMBERSHIP AND ACTIVITIES
The composition of the Board remained unchanged from the previous year,
with Elmer D. Daum, B.A., C.A., as Chairman, and John D. Honeyman and
C. H. P. Killick, P.Ag., as the other members.
The Board held 25 meetings during the year. Fifteen of these were held to
discuss matters of policy and administration. The balance of the meetings were with
producers, vendors, and other interested parties to discuss matters pertaining to the
production and marketing of milk.
Board representatives also attended numerous meetings held by other organizations to discuss matters pertinent to the milk industry generally. Among these
meetings was regular attendance at the British Columbia Federation of Agriculture
 BB 6 BRITISH COLUMBIA
Dairy Committee meetings as well as the Federation's Annual Convention. The
Board also attended the National Dairy Council Convention held in Victoria and the
Western Dairy Conference held in Seattle.
In addition to these regular activities, one of the main projects undertaken by
the Board was to study the effect of amalgamating Milk Board areas, taking into
consideration both the legal and practical aspects of the issue. This study is of a
continuing nature and is being done in co-operation with producer organizations of
several areas and with the Dairy Committee of the Federation of Agriculture.
AREAS OF PRODUCTION
During 1971 the five areas of production defined under the provisions of section
40 of the Milk Industry Act remained unchanged.
STATISTICAL INFORMATION
Statistical information relative to the sale of fluid dairy products, the production
and utilization of qualifying milk, the accounting values for each class of qualifying
milk, and producer prices for qualifying milk and the licensing of producers and
vendors is given in the tables included herewith.
Where feasible, comment has been made concerning British Columbia statistics
relative to national statistics. Also included are comments relative to comparisons of
Milk Board controlled areas of production. The details of changes in the individual
statistical tables are outlined in the comments applicable to each table.
Table I—Analysis of Quart Sales by Product Category
This table is a consolidation of the information previously provided in Tables
I and II. The information excluded from the current table is the totals of the nine
previous years. This information, which may be obtained from previous Reports,
has been replaced by the more informative comparisons of the current year's figures
to those of the previous year.
Total quart sales in the five controlled areas of production increased 3.49 per
cent during the year. The Vancouver, the Kamloops-Okanagan, and the Cariboo
and Central British Columbia areas showed increased total quart sales, while the
Vancouver Island and the East and West Kootenay areas showed decreased total
quart sales.
The consumer's increasing preference for milk with a lower butterfat content
continued in 1971, with all areas showing decreases in sales of standard milk sales
amounting to an aggregate decrease of 3.5 per cent. All areas showed increased
sales of low-fat milk, producing an aggregate increase of 13.54 per cent.
Other than standard milk, almost all product categories showed increased sales
in all areas during the year. The exceptions to this generalization were decreased
sales of the 9-per-cent butterfat creams and whipping cream in the Vancouver Island
area and decreased sales in all product categories, except the above-noted low-fat
milk sales increase in the East and West Kootenay area.
The trend of decreased retail sales and increased wholesale sales continued
during 1971. In the controlled areas of production, 23.74 per cent of the sales were
retail and 76.26 per cent were wholesale. During 1970 the retail-wholesale split
was 25.48 per cent and 74.52 per cent respectively. This represents a 3.59-per-cent
decrease in retail sales and a 5.91-per-cent increase in wholesale sales.
 REPORT OF THE MILK BOARD, 1971 BB 7
The trend of decreased retail sales and increased wholesale sales followed the
Provincial pattern in all but one of the controlled areas of production. The East and
West Kootenay area showed an increased proportion of retail sales. This is the result
of increased penetration into the area by vendors from outside the area, which reduced the total sales of the area, particularly the wholesale sales, leaving a greater
proportion of the retail sales available for the vendors located within the area.
Table II—Analysis of Class I Sales, Including Inter-area Sales
In previous Reports this information was contained in Table IV.
Total Class I sales in pounds (which is the aggregate of all Class I sales in an
area of production, whether made by the vendors within the area or by vendors
located outside the area) increased in all areas of production during 1971. This
resulted in a Provincial increase for the controlled areas of production of 4.81 per
cent. However, in both the Vancouver Island and the East and West Kootenay
areas the sales of vendors located within the area declined. Thus, the increase in
total Class I sales of these two areas was due to increased penetration of vendors
located outside the area.
With the exception of the East and West Kootenay area, where their sales penetration in 1971 decreased, the Vancouver area vendors increased their sales penetration in all other controlled areas of production. The Kamloops-Okanagan area
vendors increased their penetration in both the East and West Kootenay area and
Cariboo and Central British Columbia area.
Table III—Analysis of Qualifying Milk: Production and Utilization
While the numbering sequence of this table has remained as in previous Reports,
the information contained therein has been expanded to include average daily production figures, quota milk-production figures, and several inter-related percentage
analyses. Also, information concerning the months to be used for 1972/73 daily
milk-quota calculations, formerly reported as Table V, has now been included in
this table.
Total qualifying milk production during 1971 increased 2.80 per cent in the
five controlled areas of production. This is opposite to the latest available national
production figures, which show a 3-per-cent production decrease in the first 11
months of 1971.
As the 2.80-per-cent total increase in pounds of production is less than the
4.81-per-cent total increase in pounds of Class I sales, a 3.78-per-cent increase in
total Class I utilization occurred.
Total quota-milk receipts in the five areas of production were 76.64 per cent of
total production during 1971 compared to 74.89 per cent in 1970. Total Class I
utilization of quota receipts fell from 86.80 per cent in 1970 to 85.57 per cent
in 1971.
All controlled areas of production showed increases in both production and
quota receipts. However, the Vancouver Island area and the East and West Kootenay area were the only areas not to show increases in Class I utilization during 1971.
This fact is also evident from the information in Tables I and II and was noted in the
comments related to these tables.
As a result of a 15.3-million-pound increase in Class I sales, coupled with only
a 7.5-million-pound increase in production, the Vancouver area was the only area to
show a decreased utilization of milk surplus to Class I requirements.
 BB 8 BRITISH COLUMBIA
Table TV—Class I Accounting Value Formula and Producer Price
The information contained in this table relative to the Class I formula base
period, monthly accounting values for all classes of production, and monthly producer prices was formerly contained in Table VI. However, the content of the table
remains unchanged.
Table V—Licensing Information
Under the provisions of the Milk Industry Act and General Order 46, the Milk
Board issues Class I licences to vendors and milk jobbers and Class II licences to
producers. Both classes of licences are issued April 1 each year for a 12-month
period or portion thereof. A summary of the 1971/72 licences issued, cancelled,
and in effect at December 31, 1971, is contained in Table V. The information contained in this table previously formed part of the introductory comments of the
Annual Report.
There were 1,533 Class II licences in effect December 31, 1970, in the controlled areas of production, compared to 1,494 in effect December 31, 1971. This
reduction of 39 producers represents a 2.54-per-cent decrease.
 REPORT OF THE MILK BOARD, 1971
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►H
 Printed by K. M. MacDonald, Printer to the Queen's Most Excellent Majesty
in right of the Province of British Columbia.
1972
555-472-2727

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