While you might grab a carton of milk without much thought, Canada’s dairy industry is a multi-billion-dollar economic powerhouse that produced over 9.3 billion litres in 2022, fueling everything from your morning latte to a thriving export market.
Key Takeaways
- In 2022, Canada produced 9.32 billion litres of cow's milk, marking a 1.2% increase from 2021
- Quebec accounted for 39.6% of Canada's total milk production in 2022 with 3.69 billion litres
- Ontario produced 2.98 billion litres of milk in 2022, representing 32.0% of national output
- In 2022, cheese production from cow's milk reached 512,000 tonnes, up 2.3% from 2021
- Butter production totalled 283,000 tonnes in 2022, a 1.8% increase year-over-year
- Yogurt production in Canada was 252,000 tonnes in 2022
- The Canadian dairy industry contributed $8.4 billion to GDP in 2022
- Dairy farming generated $26.5 billion in total economic impact including multipliers in 2022
- Dairy sector farm cash receipts totalled $8.2 billion in 2022, up 6.5% from 2021
- There were 9,623 dairy farms in Canada as of 2022, down 1.7% from 2021
- Quebec had 4,098 dairy farms in 2022, 42.6% of national total
- Ontario counted 3,351 dairy farms in 2022
- Fluid milk consumption per capita was 78.2 litres in 2022, down 2.1% from 2021
- Cheese consumption per capita reached 18.9 kg in 2022, up 1.5%
- Yogurt consumption averaged 13.4 kg per capita in 2022
Canada's dairy industry grew in 2022, producing billions of litres led by Quebec and Ontario.
Consumption Patterns
- Fluid milk consumption per capita was 78.2 litres in 2022, down 2.1% from 2021
- Cheese consumption per capita reached 18.9 kg in 2022, up 1.5%
- Yogurt consumption averaged 13.4 kg per capita in 2022
- Butter consumption per capita was 3.6 kg in 2022
- Ice cream consumption per capita totalled 9.8 litres in 2022
- Total per capita dairy consumption was 265 kg in 2022
- Milk fat consumption per capita declined to 180 grams per day in 2022
- Plant-based milk alternatives captured 10% of fluid milk market in 2022
- Household dairy expenditure averaged $450 per year in 2022
- Quebec per capita cheese consumption: 22.1 kg in 2022
- Ontario fluid milk consumption per capita: 72 litres in 2022
- 55% of Canadians consumed dairy daily in 2022 survey
- Low-fat milk (1-2%) held 60% of fluid milk sales in 2022
- Organic dairy consumption grew 8% to 4.2% market share in 2022
- School milk programs served 2.1 million litres daily in 2022
- Retail dairy sales volume: 4.2 billion kg in 2022
- Foodservice dairy purchases: 1.8 billion kg in 2022
- Lactose-free dairy sales up 12% to 150 million litres in 2022
- Butter sales in retail up 3.2% to 85,000 tonnes in 2022
- Yogurt sales growth: 4.5% in volume to 220,000 tonnes in 2022
- Cheese retail sales: 380,000 tonnes in 2022
- Fluid milk market share decline: 2% to 78 litres per capita in 2022
- Dairy in Canadian diets: 20% of calcium intake in 2022
- Per capita cream consumption: 2.1 litres in 2022
- Processed cheese consumption: 1.2 kg per capita in 2022
- Dairy beverage innovations (flavoured milk) sales: 450 million litres in 2022
Consumption Patterns Interpretation
While the classic glass of milk is slowly being nudged off the table by alternatives and changing tastes, Canada's unwavering love for cheese, butter, and yogurt proves we're not breaking up with dairy, we're just seeing other snacks.
Dairy Product Manufacturing
- In 2022, cheese production from cow's milk reached 512,000 tonnes, up 2.3% from 2021
- Butter production totalled 283,000 tonnes in 2022, a 1.8% increase year-over-year
- Yogurt production in Canada was 252,000 tonnes in 2022
- Ice cream and frozen desserts production reached 248,000 tonnes in 2022
- Condensed and evaporated milk production was 45,000 tonnes in 2022
- Powdered milk (skim and whole) production totalled 78,000 tonnes in 2022
- Creamery butter output increased by 4.1% to 267,000 tonnes in 2022
- Cheddar cheese production was 145,000 tonnes, comprising 28% of total cheese in 2022
- Mozzarella cheese production reached 112,000 tonnes in 2022
- Processed cheese production totalled 42,000 tonnes in 2022
- Cream cheese output was 18,500 tonnes in 2022
- Dairy product manufacturing plants numbered 456 in 2022
- Quebec hosted 42% of Canada's cheese production capacity in 2022
- Ontario produced 38% of national yogurt in 2022 at 96,000 tonnes
- Ice cream production per capita was 6.2 kg in 2022
- Butter imports for manufacturing were 12,000 tonnes in 2022
- Milk powder exports from manufacturing hit 25,000 tonnes in 2022
- Fluid milk processing volume was 3.1 billion litres in 2022
- Dry whey production totalled 35,000 tonnes in 2022
- Cottage cheese production reached 22,000 tonnes in 2022
- Dairy dessert production (puddings, etc.) was 15,000 tonnes in 2022
- Sour cream and dips production totalled 28,000 tonnes in 2022
Dairy Product Manufacturing Interpretation
Canada's dairy industry is showing a firm commitment to both comfort and calcium, with cheese production leading a 2.3% charge in overall growth while cheddar alone stands as a testament to our national character, making up 28% of our cheese output.
Economic Contributions
- The Canadian dairy industry contributed $8.4 billion to GDP in 2022
- Dairy farming generated $26.5 billion in total economic impact including multipliers in 2022
- Dairy sector farm cash receipts totalled $8.2 billion in 2022, up 6.5% from 2021
- Dairy processing added $19.4 billion to the economy in 2022 via value-added
- 221,000 jobs were supported by the dairy industry in 2022 across Canada
- Dairy exports reached $1.1 billion in value in 2022
- Average dairy farm cash receipts per farm were $1.2 million in 2022
- Dairy industry's contribution to agricultural GDP was 7.8% in 2022
- Total dairy supply chain economic multiplier effect was 3.2 in 2022
- Dairy farm net operating income averaged $450,000 per farm in 2022
- Processing and manufacturing wages in dairy totalled $2.1 billion in 2022
- Dairy sector taxes paid to governments exceeded $2.5 billion in 2022
- Quebec dairy GDP contribution was $3.8 billion in 2022
- Ontario dairy economic impact was $6.2 billion in 2022
- Dairy farm expenses totalled $6.8 billion in 2022 nationally
- Feed costs for dairy farms were $2.4 billion or 35% of expenses in 2022
- Labour costs on dairy farms reached $1.1 billion in 2022
- Dairy industry's return on investment for farms was 12.5% in 2022
- Total dairy product sales value was $17.6 billion in 2022
- Consumer spending on dairy products totalled $12.3 billion in 2022
- Dairy farm debt-to-equity ratio averaged 0.28 in 2022
- Equity on dairy farms grew 4.2% to $52 billion in 2022
- Dairy sector R&D investment was $250 million in 2022
Economic Contributions Interpretation
Canada's dairy industry is a multi-billion dollar economic engine that, for all the political milking it endures, consistently proves it's no cash cow to be trifled with.
Farm Structure
- There were 9,623 dairy farms in Canada as of 2022, down 1.7% from 2021
- Quebec had 4,098 dairy farms in 2022, 42.6% of national total
- Ontario counted 3,351 dairy farms in 2022
- Alberta had 589 dairy farms in 2022
- British Columbia dairy farms numbered 399 in 2022
- Average dairy herd size in Canada was 99 cows in 2022, up 2.1% from 2021
- Quebec average herd size was 77 cows per farm in 2022
- Ontario's average dairy herd was 122 cows in 2022
- Largest 25% of dairy farms averaged 250+ cows in 2022
- Dairy farms with robotic milking systems numbered 1,200 in 2022
- Average dairy farm size in hectares was 152 ha in 2022
- 65% of dairy farms were family-owned in 2022
- Dairy farms exiting the industry averaged 250 per year from 2018-2022
- New dairy farms entering averaged 50 per year 2018-2022
- 22% of dairy farms had over 150 cows in 2022
- Saskatchewan had 64 dairy farms in 2022
- Manitoba dairy farms totalled 51 in 2022
- Atlantic provinces had 182 dairy farms combined in 2022
- Dairy farms using precision agriculture tech reached 45% in 2022
- Average age of dairy farmers was 52 years in 2022
- Female dairy farmers represented 28% of total in 2022
- Dairy farms with environmental sustainability plans: 92% in 2022
- Total dairy cows inventory was 766,000 head in 2022
- Heifers under 1 year: 245,000 head on dairy farms in 2022
- Dairy farms per 100,000 population: 24 in 2022
- Per capita dairy cow ownership: 0.19 cows per person in 2022
Farm Structure Interpretation
While Canada's dairy industry is consolidating into fewer but larger and more technologically advanced farms, the steadfast commitment of its aging, predominantly family-owned farmers ensures the country's milk supply is becoming more efficient without losing its soul.
Market and Trade
- Canada's dairy exports totalled $1.15 billion in 2022, up 5.2%
- USA was top dairy export destination at 42% or $485 million in 2022
- Cheese exports reached 45,000 tonnes valued at $280 million in 2022
- Milk powder exports: 28,000 tonnes worth $95 million in 2022
- Dairy imports totalled $900 million in 2022, mainly from USA and EU
- Butter imports: 15,000 tonnes under tariff rate quotas in 2022
- Supply-managed quota for milk was 9.45 billion litres in 2022
- Average farm gate milk price: $79.85 per hectolitre in 2022
- Retail price for fluid milk averaged $2.10 per litre in 2022
- Cheese wholesale price index rose 4.2% in 2022
- Exports to Mexico grew 15% to $80 million in dairy products 2022
- China dairy imports from Canada: $45 million in 2022
- Under CUSMA, dairy TRQ fill rate was 102% for cheese in 2022
- Fluid milk imports: 120 million litres within quotas in 2022
- Organic dairy exports doubled to $50 million in 2022
- Japan dairy market access under CPTPP: $20 million exports in 2022
- EU dairy imports from Canada: $10 million under CETA in 2022
- National milk marketing pool distributed $7.9 billion to farmers in 2022
- Component pricing for butterfat: 2.5 cents per 0.1% above standard in 2022
- Protein pricing premium averaged $3.50 per kg in 2022
- Over-quota levies collected $50 million in 2022
- Retail yogurt price: $4.50 per kg average in 2022
- Butter retail price index up 8% to $6.80/kg in 2022
- Dairy market revenue growth forecast 2.1% for 2023 post-2022
Market and Trade Interpretation
Canada's dairy industry is milking the international market with impressive export growth, yet it's clear they're not willing to spill a single protected drop of their domestic supply-managed system to foreign competitors.
Milk Production
- In 2022, Canada produced 9.32 billion litres of cow's milk, marking a 1.2% increase from 2021
- Quebec accounted for 39.6% of Canada's total milk production in 2022 with 3.69 billion litres
- Ontario produced 2.98 billion litres of milk in 2022, representing 32.0% of national output
- Alberta's milk production reached 736.8 million litres in 2022, up 2.5% from the previous year
- British Columbia dairy farms produced 442.6 million litres of milk in 2022
- In 2023, Canadian milk production totalled 9.41 billion litres, a 0.97% rise year-over-year
- Saskatchewan contributed 243.2 million litres to national milk production in 2022
- Manitoba's milk output was 134.5 million litres in 2022, down slightly from 2021
- New Brunswick produced 74.8 million litres of milk in 2022
- Nova Scotia dairy production totalled 92.3 million litres in 2022
- Prince Edward Island milk production was 28.1 million litres in 2022
- Newfoundland and Labrador produced 12.4 million litres of milk in 2022
- Average milk yield per cow in Canada was 10,236 litres in 2022, up 1.8% from 2021
- Quebec's average milk yield per cow reached 10,892 litres in 2022
- Ontario cows averaged 11,014 litres of milk per cow in 2022
- In 2021, Canada had 574,000 dairy cows in milk production
- Milk production per hectare of farmland in Canada averaged 45,200 litres in 2022
- Organic milk production in Canada grew by 5.2% to 120 million litres in 2022
- Fluid milk shipments totalled 3.23 billion litres in 2022, down 1.5% from 2021
- Industrial milk production for manufacturing reached 6.09 billion litres in 2022
- Cream production from cow's milk was 1.12 billion litres in 2022
- Skim milk production totalled 2.45 billion litres in 2022 for processing
- Whole milk production for fluid use was 1.89 billion litres in 2022
- Partially skimmed milk (2%) production hit 1.34 billion litres in 2022
- Milk fat content in Canadian production averaged 3.85% in 2022
- Milk protein content averaged 3.25% across Canadian dairy herds in 2022
- Somatic cell count in Canadian milk averaged 185,000 cells/mL in 2022
- Canada ranked 4th globally in milk production with 9.32 billion litres in 2022
- Dairy heifer inventory for milk production was 192,000 head in 2022
- Milk production growth rate was 1.1% annually from 2018-2022
Milk Production Interpretation
While Quebec confidently churns out nearly 40% of Canada's milk as if trying to single-hoofedly butter the entire nation, the overall industry reveals a story of modest, efficient growth where cows are becoming overachievers and the real drama is in whether we'll drink it fresh or turn it into something else.