Dairy Update

The industry has rebounded post-COVID, with Ontario emerging as the leading producer boasting a substantial milk powder plant that efficiently absorbs excess milk. Consequently, this has alleviated pressure on cheese prices and temporarily eradicated surplus milk in Ontario.

In the western region, we are experiencing positive growth, grappling with the perennial challenge of excess production. While producers aspire to expand, the market may not always align with these ambitions.

In Alberta, processing is managed by us (alongside Rock Ridge Dairy and Crystal Springs) and Tiras Dairy. There are a total of seven major milk producers, evenly distributed between central and southern Alberta.

British Columbia sees our presence along with smaller on-farm producers. Alberta leads in western production, with no commercial producers in Manitoba and Saskatchewan.

Market stability has been a consistent trend, although historical patterns reveal the looming threat of overproduction. To avert this, we are currently refraining from accepting new farmers.

The cheese market, saturated and challenging to penetrate at scale, still offers opportunities for smaller on-farm producers, especially through farmers' markets.

The fluid goat milk market faces intense competition from plant-based alternatives, supported by substantial marketing budgets. Despite our inability to match their cost-effectiveness, there's a glimmer of hope as the decline in the fluid goat milk market halted last year, showing slow growth in British Columbia, but not yet in Alberta.