Friday, September 13, 2013

Milk Producer magazine

The current issue of Milk Producer Magazine for Ontario's dairy farmers reveals some strange inconsistencies.

The cover article is about winning the environmental stewardship award, yet inside you will find another small reference to the fact that yogourt processors can't get enough fresh skim milk while, at the same time the dairy industry is wasting energy to dry skim milk into powder that's not required in the Canadian market.

There is another reference to policy gains to supply milk for growth markets, but it's a mere one per cent. And the Canadian Dairy Commission, appointed by the federal government, had to lean on the milk marketing board leaders to achieve even that modest volume.

At the back of the magazine is a column that features a new Greek yogourt for men. However, it's not made in Canada, although it is on the U.S. market. It's a reminder of the failure to capitalize on the opportunity to have a new plant for the new Chobani Greek yogourt products built at Kingston.

The underlying lesson is that a handful of central planners is not the way to run an industry. Encouraging innovation and competition in a messy free-market atmosphere still works much better.