Canada's Dairy Industry Overview

Canada stands as a key player in the global dairy market, known for its significant production outputs and advanced processing systems. The country maintains high standards in dairy production and exportation, making it a critical contributor to the global dairy supply chain.

Milk Production

With an annual production of approximately 93.5 million hectolitres of milk, Canada showcases its efficient and robust dairy infrastructure. This substantial output highlights its essential role in the global dairy supply chain.

Dairy Population

Canada is home to around 940,000 dairy cattle, predominantly located in Ontario, Quebec, and British Columbia. Additionally, the country boasts a growing dairy goat population of about 230,000, reflecting increasing demand for goat milk and cheese to meet niche market needs.

Milk Processing and Product Manufacturing

Canada processes around 92 million hectolitres of milk annually. It produces approximately 515,000 tonnes of cheese each year, offering popular varieties like cheddar and mozzarella. Furthermore, the country manufactures around 100,000 tonnes of milk powder and 30,000 tonnes of whey, underscoring its capability in diverse dairy product manufacturing.

Key Dairy Enterprises

Saputo Inc.
Agropur Cooperative
Parmalat Canada
Gay Lea Foods

Major Dairy Farms

Eagle Ridge Dairy (Ontario)
Valley View Dairy Farm (Quebec)
Highland Farms (British Columbia)

Export and Import Trends

Canada exports approximately $400 million worth of dairy products annually, with key markets including the United States, China, and Japan. Exports to the U.S. are valued at around $488 million CAD in 2023. On the import side, Canada imports roughly $1 billion in dairy products each year, primarily from the United States, France, and New Zealand.

Recent Developments in the Dairy Market

Saputo Inc. is closing six U.S. facilities to streamline operations and increase cheese production capacity. Lactalis Canada endorsed a new Grocery Code of Conduct, and Sodiaal expanded its Canadian presence by acquiring General Mills' yogurt operations. International trade dynamics pose challenges, particularly with the U.S., highlighting issues in supply management and export pricing strategies. Despite these challenges, Canada's protected supply management system remains resilient against international pressures.

Butter export sales saw a remarkable 171% rise from the previous year, driven mainly by a surge in demand from Canada. The sale of Olortine Avenger Design, a four-year-old Holstein cow bred in Ontario, Canada, for $1 million underscores Canada's role in breeding valuable Holstein cows.

Canada and New Zealand recently reached an agreement on the dairy market access dispute under the CPTPP, with Canada agreeing to significant changes in administering dairy quotas. Frederic Guichard returned to Canada as the president of Danone Canada, addressing a crisis due to a listeria outbreak linked to the company's plant-based products.

The Canadian government is actively involved in the Sustainable Canadian Agricultural Partnership, investing $4.4 million to support food safety and economic growth in the agri-food sector. Opalia, a Canadian start-up, has entered a partnership with Hoogwegt to advance the commercialization of its cell-cultured milk technology.

Home to Saputo and Agropur, major players in the dairy industry. Saputo has a turnover of €12.6 billion, and Agropur has €5.8 billion. Bettermoo(d) is a Vancouver-based company offering a proprietary blend of herbs and oats, inspired by the diet of cows before industrial agriculture, and produces its innovative products in Canada.

Manitoba advocacy groups and politicians are concerned about the dairy farm's impact. The farm's nutrient-rich waste is expected to affect Lake Winnipeg, a critical water body in Canada.

Part of the USMCA agreement with Mexico and the United States. USMCA governs trade rules for key products, from corn and meat to dairy, involving the United States, Mexico, and Canada. Political volatility can impact dairy trade under agreements like USMCA with Canada.

Hallow Holsteins utilizes AI bulls from Canada as part of their genetics strategy. By importing around six embryos annually and utilizing AI bulls from Canada, the farm enhances its focus on high milk production.

Lactalis Canada and its partners are addressing food insecurity in Western Canada. Lactalis Canada's Olympic Organic yogurt brand has teamed up with BC Dairy and Alberta Milk to support food banks in Western Canada with a $50,000 donation amidst rising food insecurity.

Canada, specifically the province of Manitoba, is concerned about the impact of US mega-dairies on Lake Winnipeg. Manitoba is demanding an International Joint Commission review due to concerns about nutrient runoff exacerbating phosphorus loading in Lake Winnipeg.

Finalist in the IDF World Dairy Summit 2025. Canada presented the 'Unique Environmental Farm Plans' campaign.

Canada’s dairy sector consists of over 9,200 farms and supports 45,000 jobs. It is a crucial part of the economy and rural communities.

Modified: 2025/10/28