Canada: An In-Depth Analysis of the Dairy Market

Canada stands as a key player in the global dairy industry, renowned for its expansive production capacity, advanced processing capabilities, and notable influence in international trade markets.

Volume of Milk Production

Annually, Canada produces approximately 93.5 million hectolitres of milk. This substantial volume highlights Canada's efficient dairy infrastructure, playing a pivotal role in the global dairy supply chain.

Dairy Cattle and Goat Population

The country is home to around 940,000 dairy cattle, primarily located in Ontario, Quebec, and British Columbia. The dairy goat sector is growing as well, with about 230,000 goats catering to niche markets such as goat milk and cheese production.

Milk Processing Capabilities

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 and Milk Powder Production

Canada's annual cheese production stands at roughly 515,000 tonnes, covering varieties like cheddar and mozzarella. Additionally, the country produces around 100,000 tonnes of milk powder and 30,000 tonnes of whey annually, supporting domestic demands and exports.

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. The country imports about $1 billion in dairy products each year, mainly from the United States, France, and New Zealand. Canada has carved a niche in the U.S. market, with dairy exports estimated at $488 million CAD in 2023.

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 footprint in the Canadian yogurt market by acquiring General Mills' Canadian yogurt operations.
• Canadian ministers reaffirmed their commitment to defending the dairy sector in a trade dispute with New Zealand 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 their senior vice president of operations.
• Canada is addressing the impact of the Russian food embargo on agricultural exports.
• Bovaer received authorization for sale in Canada.
• APU Dairy will receive up to $2 million in concessional finance from the Canadian government.
• Canada is the second-largest market for U.S. food and agriculture exports, with expected shipments reaching $29.2 billion by 2025.
• Saputo President and CEO Lino Saputo is transitioning to the role of executive chair of the board.
• U.S. butterfat exports increased significantly in November, driven by a 131% rise in shipments to Canada.
• The Canadian and Ontario governments are investing $7.18 million to modernize dairy processing in Ontario, benefiting 70 projects.
• Canada faces accusations of destabilizing global dairy markets by exporting milk products at artificially low prices.

These strategic activities demonstrate Canada's resilience and adaptability within a rapidly evolving dairy market.

Modified: 2025/01/21

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