Thursday, September 2, 2021

Rosy outlook for Canadian dairy farmers

An equipment manufacturer is forecasting a bright future for Canadian dairy farmers featuring higher prices and increasing exports.

Hygenic Design Solutions company said that while the pandemic caused temporary production cuts, the trade agreement among Canada, the United States and Mexico (CUSMA) improved market access and removed limits to exports of skim milk powder and infant formula. 

Ultimately, milk production in 2020 exceeded 2019, and the forecast for 2021 is that this upward trend will continue. 

The reasons for the rising milk revenues are an increase in the butter support price, the expected re-opening of food services as vaccines become freely available, and higher, more stable U.S. non-fat milk prices. 

Due to these three factors, revenues are expected to increase by $1.69 – $1.77 per hectolitre in the Canadian milk pools.

Driven by population increases, rising income levels, urbanization, and changes in dietary patterns – particularly in China and India where milk supply is not keeping pace with the growing demand – developing countries offer a compelling opportunity for North American dairy companies able to bridge the gap between supply and demand overseas. However, maximizing that opportunity will require change, including:

-Adoption of digital technologies for consumer engagement and product innovation;

-Greater use of advanced manufacturing processes and technologies;
-Increased shelf life of milk and related products; and,

-Compliance with international safety and cleanliness requirements and quality standards, the company said.

Health-conscious consumers the world over are ditching trans fats and changing what they eat. This is good news for the dairy industry.

 Consumption of dairy products is on the rise, with organic milk, natural, unprocessed cheeses and Greek yogurt leading the way, dairy consumption continues to rise in spite of plant-based competitors such as almond, soy, and rice-based milks. 

On average, Canadians ate about 14.65 kilograms of cheese in 2018, an increase of 12 per cent from 2004, according to Statista Canada.

The widespread adoption of automation will change the way milk is produced, improving profitability, milk quality, lifestyle and animal welfare.


It predicts that processors will need to take more care, including stainless steel equipment, improved sanitation and vigilance to meet Canadian and international standards.