Butter Stocks Continue to Rise Amid Surging Milk Production in Canada

In Canada, butter stocks have seen a significant increase as milk production continues to rise faster than the consumption of dairy products, according to the Canadian Dairy Commission (CDC). As of March, Canadian butter stocks rose by 992 tonnes, reaching a total of 40,052 tonnes, a jump of 6,837 tonnes from the same time last year. This trend has been ongoing since August 2024, the start of the dairy reporting year in Canada, and the CDC anticipates continued growth in stock levels.

This increase in butter stocks is noteworthy because butter is often stored in greater quantities during winter and spring to ensure sufficient supply for the summer and fall, balancing the fluctuations in milk production quotas. Despite a rise in dairy consumption, marked by a 10.7 percent increase in ice cream and a 32.2 percent rise in butter consumption from February to March, milk production acceleration has led to surplus stocks.

Furthermore, as of March 2025, the total requirements for dairy products were 1.25 million kg of butterfat in daily equivalent, marking a 5.65 percent increase from February 2025 and a 3.78 percent rise from March 2024. The nation’s annual butterfat requirements grew by 2.7 percent to 441.2 million kg, demonstrating the expanding demand within the Canadian dairy market.

However, the increase in domestic production has also influenced imports, with dairy imports equivalent to 2.42 million kg of butterfat in March, maintaining a year-over-year decrease of 1.47 percent.