Canada's Dairy Industry Overview
Canada stands as a key player in the global dairy market, known for 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 underscores 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. The country also 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, highlighting its capability in diverse dairy product manufacturing.
Key Dairy Enterprises
Leading companies in Canada's dairy industry include Saputo Inc., Agropur Cooperative, Parmalat Canada, and Gay Lea Foods. Prominent dairy farms include Eagle Ridge Dairy in Ontario, Valley View Dairy Farm in Quebec, and Highland Farms in British Columbia.
Export and Import Trends
Canada exports approximately $400 million worth of dairy products annually to key markets like 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 brings in 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 has endorsed a new Grocery Code of Conduct, and Sodiaal has expanded its Canadian presence by acquiring General Mills' yogurt operations. Despite challenges in international trade dynamics, 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, 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.
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.
Technological Advancements in Dairy Farming
In Canada, 97% of dairy herds rely on Artificial Insemination (AI), which has been optimized to enhance genetic traits. This has resulted in a reduction of the beef supply as fewer dairy cows are needed, and consequently, fewer calves are born. Canada produces 23% more milk than a decade ago with 19,000 fewer cattle.
There have been alleged violations of the USMCA related to dairy market access and milk pricing. Canada has been reproached for undermining dairy market access commitments by altering milk price classes before the USMCA's implementation. The IDFA also criticized Canada's tariff-rate quota (TRQ) policies as non-transparent and favoring domestic processors. Danone plans a substantial investment in its Boucherville, Quebec factory. The investment aims to enhance the plant's yogurt tub production by 40% and boost its raw milk processing capacity by 20%.
Modified: 2025/11/18