Canada's Dairy Industry: A Comprehensive Overview

Canada is renowned for its substantial contributions to the global dairy market, showcasing impressive production outputs and sophisticated processing systems. As a pivotal player, Canada ensures high standards in dairy production and exportation.

Milk Production

Canada produces approximately 93.5 million hectolitres of milk annually, reflecting the country's efficient and robust dairy infrastructure. This output underlines Canada's critical role in the global dairy supply chain.

Dairy Population

• Dairy Cattle Population: Canada is home to around 940,000 dairy cattle, primarily located in provinces such as Ontario, Quebec, and British Columbia.
• Dairy Goat Population: The country also maintains about 230,000 dairy goats. With an increasing demand for goat milk and cheese, this sector is rapidly expanding to meet niche market needs.

Milk Processing and Product Manufacturing

• Milk Processing Volume: Annually, Canada processes around 92 million hectolitres of milk.
• Cheese Production: Producing approximately 515,000 tonnes of cheese each year, Canada offers popular varieties like cheddar and mozzarella.
• Milk Powder and Whey Production: Canada produces around 100,000 tonnes of milk powder and 30,000 tonnes of whey.

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. Key markets include the United States, China, and Japan, with exports to the U.S. valued at around $488 million CAD in 2023.
• Imports: 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

Several significant events have shaped the Canadian dairy industry recently:

• Saputo Inc. is closing six U.S. facilities to streamline operations and boost cheese production capacity.
• Lactalis Canada has endorsed a new Grocery Code of Conduct.
• Sodiaal expanded its Canadian presence by acquiring General Mills' yogurt operations.
• Canadian ministers have 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.
• National Farmers Union President Rob Larew issued a statement about the ongoing trade dispute between the United States and Canada, highlighting the detrimental effects of broad dairy tariffs on American dairy farmers.
• A delegation of Canadian ranchers participated in the event addressing the Screwworm infestation.

These strategic activities highlight Canada's resilience and adaptability in the face of an ever-changing dairy market. International trade dynamics, particularly with the U.S., showcase challenges in supply management and export pricing strategies. Despite potential challenges, Canada's protected supply management system is set to withstand international pressures, though future market access negotiations may present obstacles.

Canada's dairy system aims to secure fair pricing for farmers, contrasting with current U.S. difficulties. Canada has been a crucial export market for U.S. dairy products and has faced criticism from former President Trump for its high tariffs on dairy products, which can reach up to 250 percent in some cases.

Overall, while the Canadian dairy market faces challenges like international trade tensions and tariff disputes, it remains a robust and crucial part of the country's economy. Butter export sales saw a remarkable 171% rise from the previous year, driven mainly by a surge in demand from Canada.

Modified: 2025/05/17

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