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THE MILK BOARD ANNUAL REPORT for the YEAR ENDED DECEMBER 31 1972 British Columbia. Legislative Assembly 1973

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 PROVINCE OF BRITISH COLUMBIA
THE MILK BOARD
ANNUAL REPORT
for the
YEAR ENDED DECEMBER 31
1972
Printed by K. M. MacDonald, Printer to the Queen's Most Excellent Majesty
in right of the Province of British Columbia.
1973
  To His Honour the Lieutenant-Governor in Council
oj 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-seventh Annual Report of the Milk Board
under that Act for the year ended December 31, 1972.
THE MILK BOARD
E. D. Daum, Chairman
J. D. Honeyman, Member
C. H. P. Killick, Member
Vancouver, B.C., February 28, 1973.
  Twenty-seventh Annual Report of the Milk Board
For the Year Ended December 31, 1972
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, 1972.
LEGISLATION
Milk Industry Act
The Twenty-ninth Legislative Assembly did not pass any amendments to the
Milk Industry Act during the Third Session. However, on the 22nd of June 1972,
Order in Council 2450 was approved, which, pursuant to section 40 (c) of the
Milk Industry Act, repealed the Kamloops-Okanagan and East and West Kootenay
areas of production and redefined the territory encompassed by these areas as the
Okanagan-Kootenay area of production.
The First Session of the Thirtieth Legislative Assembly did not pass any
amendments to the Milk Industry Act.
Milk Board General Orders
General Order 50 (B.C. Reg. 106/72), made on April 26, 1972, amending
General Order 46 (B.C. Reg. 126/70), came into operation on May 1, 1972.
The effect of this order was to repeal General Order 48 (B.C. Reg. 119/71), and
General Order 49 (B.C. Reg. 256/71). It established the new base period of
1962-71 and the new base period values. The order increased the Class III
accounting value for milk of 3.5 per cent butterfat content 21 cents from $3,950
per hundred pounds to $4,160 per hundred pounds. This change was necessitated due to a 3-cent-per-pound increase in the support price for skim-milk powder
announced by the Canadian Dairy Commission on March 29, 1972. Other effects
of the order were to increase the handling charge allowance on bulk transfers of
milk for Class I use, to provide for compulsory interim payments to producers,
and to provide for the announcing of accounting values prior to the first day of
the month to which the accounting values are applicable.
General Order 51 (B.C. Reg. 162/72), made on June 27, 1972, further
amending General Order 46 (B.C. Reg. 126/70), came into operation on July
1, 1972. The order was necessitated due to the approval of Order in Council
2450 defining the Okanagan-Kootenay area of production and made the Board's
General Orders applicable to the newly defined area. The order provided for a
uniform classification of Class II milk in all controlled areas of production. The
order also amended the Class I accounting value formula to provide for the linking of imported alfalfa hay prices to Vancouver pick-up prices for alfalfa hay.
General Order 52 (B.C. Reg. 227/72), made on September 25, 1972, further amending General Order 46 (B.C. Reg. 126/70), came into operation on
September 28, 1972. The effect of the order was to delete from the Class I
accounting value formula the Index of Commodities and Services Used by Farmers and replace it with the Index of Prices of Farm Inputs. This was made
necessary due to Statistics Canada discontinuing the publication of the Index of
Commodities and Services Used by Farmers and replacing it with the Index of
Prices of Farm Inputs.
5
 CC 6
BRITISH COLUMBIA
Milk Board Membership and Activities
Membership of the Board remained unchanged from the previous year, with
Elmer D. Daum, B.A., C.A., as Chairman, and J. D. Honeyman and C. H. P.
Killick, P.Ag., as the other members.
The Board held 15 meetings to discuss matters of policy and administration
and held 10 additional meetings with producers, vendors, and other interested
parties to discuss matters pertinent to the milk industry.
As in past years, Board representatives attended all meetings of the Dairy
Committee of the British Columbia Federation of Agriculture, and the Board members attended the Federation's Annual Convention.
The Board Chairman and Administrator attended a meeting of the four
western Canadian milk control agencies, held in Edmonton, Alta.
The Board acted in an advisory capacity to the subcommittee of the Dairy
Committee of the B.C. Federation of Agriculture charged with the responsibility
of studying the possible entry of British Columbia into the Canadian Dairy Commission's comprehensive market-sharing programme.
Areas of Production
As stated previously, Order in Council 2450 repealed the Kamloops-Oka-
nagan and the East and West Kootenay areas of production and redefined the territory as the Okanagan-Kootenay area of production. The other areas remained
as defined in past years.
Statistical Information
To provide comparability between 1971 and the current year in the tables
applicable to the newly defined Okanagan-Kootenay area of production, the totals
in the tables of the Board's 1971 Annual Report pertaining to the Kamloops-
Okanagan and the East and West Kootenay areas of production have been consolidated.
Table I—Analysis oj Quart Sales by Product Category
Total quart sales increased in all four areas of production, with the total increase being 4.33 per cent.
Again in 1972 the sales of standard milk decreased, while low-fat and skim-
milk sales increased in all areas of production. The aggregate decrease in standard milk sales and the aggregate increase in low-fat and skim-milk sales were 1.96
per cent and 10.49 per cent respectively.
Buttermilk sales declined in all areas with the exception of Vancouver Island,
which showed a large 18.93-per-cent increase.
Cream sales of all types increased in all areas with but one exception, that
being in the Vancouver Island area of production, where whipping-cream sales
continued to decline. Light-cream (9 per cent butterfat content) sales in the
Vancouver Island area increased almost 7 per cent after showing a decrease in
1971.
In all controlled areas of production, with the exception of the Vancouver
area, the switch from retail to wholesale sales continued. The Vancouver area
showed increases in both retail and wholesale sales. The aggregate decrease in
retail sales in the controlled areas of production was 0.87 per cent, while the ag-
 REPORT OF THE MILK BOARD, 1972 CC 7
gregate increase in wholesale sales was 5.95 per cent. In the controlled areas of
production, 22.55 per cent of the quart sales were retail and 77.45 per cent were
wholesale.
Table II—Analysis oj Class I Sales, Including Inter-area Sales
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 1972. The
aggregate increase was 5.07 per cent. Within area Class I sales increased in all
controlled areas of production as did inter-area Class I sales.
Table HI—Analysis oj Qualifying Milk: Production and Utilization
Total qualifying milk production during 1972 increased 2.5 per cent in the
controlled areas of production. This is slightly higher than the latest available
national production figures, which show a 1-per-cent production increase in the
first 11 months of 1972.
As the 2.05-per-cent increase in pounds of production is less than the per
cent increase in total in pounds of Class I sales, a 4.11-per-cent increase in total
Class I utilization occurred.
Total quota milk receipts in the controlled areas of production were 76.44
per cent of total production during 1972, unchanged from 1971. Total Class I
utilization of quota receipts increased from 85.57 per cent in 1971 to 87.36 per
cent in 1972.
Total production, quota milk receipts, and Class I utilization increased in all
controlled areas of production.
With the exception of the Okanagan-Kootenay area of production, all areas
of production experienced a larger increase in Class I utilization than in total
production, thereby creating a decrease in the milk-supply surplus to Class I requirements in those areas.
Table IV—Class I Accounting Value Formula and Producer Price
The contents of this table summarize the accounting values for each class of
utilization announced by the Milk Board for the calendar year 1972. Also shown
are the producer prices (before adjustments), calculated monthly by the Board.
Details relative to Milk Board General Orders referred to in the table may be
found in the comments applicable to legislation.
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 1st each year
for a 12-month period or portion thereof. A summary of the 1972/73 licences
issued, cancelled, and in effect December 31, 1972, is contained in Table V. There
was a net decrease of 75 producers from December 1971 to December 1972, which
is a 5.02-per-cent reduction from December 1971.
 CC 8
BRITISH COLUMBIA
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