Quota is a way we ensure production on the farm is in line with demand from consumers. All licensed dairy producers must have quota.
The price of quota in Alberta is set strictly by Alberta dairy farmers, without intervention by Alberta Milk.
Quota price is based on the willingness of producers to pay for the capacity to produce milk. It is determined on the Alberta Milk Quota Exchange, which is a type of two-way auction. If the participants in the quota exchange truly viewed the price as expensive, they would bid less to buy quota, or offer to sell quota for less, and the price would decline.