Overview of Canada's Dairy Industry

Canada is a significant contributor to the global dairy industry, renowned for its expansive production capacity, advanced processing capabilities, and notable influence in international trade markets.

Milk Production

Volume of Milk Production: Annually, Canada produces approximately 93.5 million hectolitres of milk, showcasing its efficient dairy infrastructure and substantial role in the global dairy supply chain.

Dairy Population

Dairy Cattle Population: The country is home to around 940,000 dairy cattle, primarily located in Ontario, Quebec, and British Columbia.

Dairy Goat Population: The dairy goat sector is also growing, with about 230,000 goats catering to niche markets such as goat milk and cheese production.

Milk Processing and Product Manufacturing

Milk Processing Volume: Each year, Canada processes about 92 million hectolitres of milk, transforming it into a range of dairy products for both domestic use and international distribution.

Cheese Production: Canada produces around 515,000 tonnes of cheese annually, with popular varieties including cheddar and mozzarella.

Milk Powder and Whey Production: Additionally, the country produces approximately 100,000 tonnes of milk powder and 30,000 tonnes of whey each year.

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

Exports: Canada exports approximately $400 million worth of dairy products annually, with key markets being the United States, China, and Japan. Notably, Canada's dairy exports to the U.S. are estimated at $488 million CAD in 2023.

Imports: The country imports about $1 billion in dairy products each year, mainly 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 enhance cheese production capacity.
• Lactalis Canada has endorsed a new Grocery Code of Conduct.
• Sodiaal expanded its presence in Canada by acquiring General Mills' yogurt operations.
• Canadian ministers reaffirmed their commitment to defending the dairy sector in trade disputes under the CPTPP framework.
• The Canadian Food Inspection Agency issued a rebuke to Joriki following a listeria outbreak investigation.
• Agropur appointed Jean-François Dubé as senior vice president of operations.

These strategic activities underscore Canada's resilience and adaptability within a rapidly evolving dairy market. International trade dynamics with Canada are influencing U.S. dairy exports, amid concerns over supply management and export pricing strategies. Canada's dairy industry plays a crucial role in tariff negotiations with the United States.

The investment is part of a strategy aimed at strengthening Quebec’s dairy sector. The United States and Canada boast higher rates of food self-sufficiency. Additionally, tariffs were raised on Canadian and Mexican imports by 25%. Effective March 4, 2025, the U.S. government implemented a 25% tariff on Canadian imports. The Canadian 270% tariff on U.S. dairy products, criticized heavily by Trump, is a prime example of the friction between countries that these tariffs could exacerbate. Canadian farmers are also feeling the pressure. The long-standing supply management system, which has historically shielded Canada’s dairy, poultry, and egg industries from price volatility, now faces renewed scrutiny from the U.S. administration. Canada is one of the countries responding to tariffs introduced by the United States.

Modified: 2025/03/10

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