Skim milk challenges supply management

Canadians have an increased appetite for butter, cream and cheese which is undoubtedly good news for dairy farmers.

But it comes with a bit of a cloud – increased supplies of skim milk.

And trade rules restrict Canadian exports, so some made-in-Canada solutions are needed.

The federal government is offering $333 million to processors as part of concessions made in trade deals with the United States and Mexico, with the European Unin and with Pacific-rim countries and in Western Canada some of that is being invested in a plant to process skim milk.

But the biggest volumes are in Ontario and Quebec.

The Ontario government, in a joint deal with Ottawa, announced this week that it will open applications for dairy processors to tap into another $8-million fund.

Murray Sherk, retiring chairman of Dairy Farmers of Ontario, said at the annual meeting this week that  “processing and finding markets for all components in a trade-restrictive environment has been a challenge to solve.”