Dairy farming in Canada

Dairy farming is one of the largest agricultural sectors in Canada. Dairy has a significant presence in all of the provinces and is one of the top two agricultural commodities in seven out of ten provinces.[1]

Dairy cattle in a barn in Quebec

In 2018, there were 967,700 dairy cows on 10,679 farms across the country.[2] Quebec and Ontario are the major dairy producing provinces, with 5,120 and 3,534 farms, which produce 37% and 33% of Canada's total milk.[3] This is supposed to represent 8% of farmers in Canada.[4] While dairy farming is still prominent in Canadian society, the number of dairy farms in Canada has been dropping significantly since 1971 while the size of the average farm has significantly increased to 89 cows per farm.[5]

The Canadian dairy sector contributes approximately $18.9B yearly to Canada's GDP, and sustains approximately 215,000 full-time equivalent jobs.[6] On average, two-thirds of Canadian dairy produced is sold as raw milk while the remaining one-third is refined into other dairy products such as milk, cheese and butter.[7]

In Canada, dairy farming is subject to the system of supply management. Under supply management, which also includes the egg and poultry sectors, farmers manage their production so that it coincides with forecasts of demand for their products over a predetermined period - while taking into account certain imports that enter Canada, as well as some production which is shipped to export markets. Imports of dairy, eggs, and poultry are controlled using tariff rate quotas, or TRQs. These allow a predetermined quantity to be imported at preferential tariff rates (generally duty free), while maintaining control over how much is imported. The over-quota tariffs are set at levels where practically no dairy products are sold to Canada above the quotas. That should allow Canadian farmers to receive a price reflecting the cost to produce in the country.[8]

There has been pushback regarding the supply management system, and research indicates that the Canadian population generally have varied views with the current system.[9][10] The Dairy Farmers of Canada, a dairy advocacy group, claims that the system is necessary for farmers to provide quality milk to consumers.[11]

History

The Canadian Dairy Farmers' Federation was founded in 1934. The group became Dairy Farmers of Canada in 1942, and its mandate was to stabilize the dairy market and increase revenues for dairy farmers.[12] In the face of lobbying, government programs were instituted in the 1940s and 1950s to increase prices and limit imports. 1958 saw the creation of the Agricultural Stabilization Board, though it was not limited to dairy.[13] In the 1950s and 1960s there was significant volatility in dairy prices; dairy producers were seen as having too much bargaining power relative to dairy farmers, and the United Kingdom was poised to enter the European Common Market, resulting in the loss of Canada's largest dairy export partner. These challenges led to the creation of the Canadian Dairy Commission, whose mandate was to ensure the quality and supply of milk, that producers received a "fair" return on investment, and set prices based on production costs, market price, consumer's ability to pay, and current economic conditions.[14]

Statistics

Snapshot of the Canadian dairy industry

"Dairy industry by province, 2015 (Dairy cow and calf slaughter is included in meat production statistics)[3]

Province	Number of Dairy Farms	Number of Dairy Cows	Production (hectolitres)	Dairy Cows per Farm	Production (hectolitres) per Farm
British Columbia	437	75,100	7,221,505	172	16,525
Alberta	547	77,900	7,015,384	142	12,825
Saskatchewan	163	27,100	2,426,736	166	14,888
Manitoba	299	44,700	3,450,720	150	11,540
Ontario	3,834	318,700	26,921,164	83	7,022
Quebec	5,766	354,100	30,016,781	61	5,206
New Brunswick	354	18,500	1,394,496	90	6,769
Nova Scotia	225	23,200	1,804,153	103	8,019
Prince Edward Island	174	14,300	1,032,523	82	5,934
Newfoundland & Labrador	32	6,000	483,413	188	15,107
CANADA	11,683	959,600	81,766,876	82	6,999

Supply management

See also: Supply management (Canada)

The government of Canada put in place a supply management system during the early 1970's as an effort to reduce the surplus in production that had become common in the 1950s and 1960s and to "ensure" a fair return for farmers.[12] Supply management is a shared jurisdiction between the Federal and Provincial governments. On a Canada-wide basis, there is the Canada-wide Canadian Dairy Commission, composed mostly of dairy farmers, while in Ontario there is the Dairy Farmers of Ontario. Other provinces also have similar local boards.[8]

Milk for sale in a supermarket in London, Ontario.

In 1983, the National Milk Marketing Plan came into effect to control supply, setting guidelines for calculating Market Sharing Quota. This agreement is between the federal and provincial powers. The Milk Marketing Plan was created to replace the Comprehensive Milk Marketing Agreement, which was initially established in 1971. By 1983, every province except Newfoundland had signed onto the Milk Marketing Agreement.[15] Following dairy, a national supply management system was implemented for eggs in 1972, turkey in 1974, chicken in 1978 and chicken hatching eggs in 1986.[8]

The basic idea behind supply management is to manage production so that supply is in balance with demand, and the farm gate price enables farmers to cover their costs of production, including a return on labour and capital.[8] Each farm owns a number of shares in the market (quota), and is required to increase or decrease production according to consumer demand. Because production is in sync with demand, overproduction is avoided; this enables farmers to earn a predictable and stable revenue, directly from the market.[8]

A supply management system for Canadian dairy products is beneficial to Canadian dairy farmers. The consequence of such a system is artificially higher dairy prices in Canada which has shown to affect the consumption of dairy products in Canada. Due to higher prices, individuals are consuming lower amounts of dairy products and instead consuming dairy substitutes, such as almond or soy milk, at a higher rate.[16]

There is concern regarding the impact that supply management has on political influence, given that the number of dairy farmers in Canada has been significantly dropping since 1971, the percentage of dairy farmers compared to other farmers in Canada, the amount spent to protect the system and the tactics used, the electoral clout that dairy farmers have on elections, as well as the fact that the average dairy farmer have become significantly wealthier in term of net worth.[4][13][17] These groups also feel like that the system also be done away in order to increase food manufacturing, reduce food waste, tackling poverty and prevent future food shortages.[18][19][20][21] In addition, the Canadian dairy system makes Canadian dairy farmers unable to participate in the global dairy market potentially limiting their expansion if they could compete with artificially low international milk prices and should be done away with in light of Canada's commitment to free trade.[13]

Regulations

Canadian dairy farmers follow regulations outlined by the Canadian Food Inspection Agency to ensure proper oversight of dairy production to ensure biosecurity standards are maintained in the sectors of environmental protection, human health, animal health, and animal welfare. CFIA biosecurity standards are voluntary.[22] In adhering to these regulations, dairy farmers can make certain that dairy standards are sustained.[23] Under the 2015 TPP negotiations it was revealed that Health Canada had not found evidence of adverse health effects in humans from the consumption of recombinant bovine somatotrophin (rBST) growth hormone products. Without a labeling requirement, if Canadians chose to only consume Canadian dairy products in order to avoid consuming rBST, there would be no way of knowing the origins of milk ingredients. Processed food sold in Canada could contain ingredients from cows from the U.S. that were treated with rBST.[24]

Animal Welfare

Further information: Dairy farming § Animal welfare

The main welfare issues regarding Canadian dairy production include the immediate separation of calves from their mothers, the isolation and confinement of male calves, various painful invasive procedures, lameness, confined living conditions, rough handling practices, stressful transportation environments, pre-slaughter conditions, and the slaughter itself.[25][26][27][28]

A 2018 review of Canadian dairy farms found that many dairy cows intended to be slaughtered, known as cull dairy cows, are transported to widely dispersed and specialized slaughter plants, and they may experience multiple handling events (e.g., loading, unloading, mixing), change of ownership among dealers, and feed and water deprivation during transport and at livestock markets.[29]

According to the Canadian Veterinary Welfare Association, dairy cows that are considered to be of low or reduced economic value are removed (culled) from the herd for a variety of reasons including reproductive issues (e.g., fertility), low milk production, mastitis, lameness, and other forms of ill-health. Cull dairy cows may be in poor condition and as such may be at greater risk of suffering during standard transport and slaughter.[30]

The Canadian dairy industry is often criticized by animal rights and animal welfare groups, such as the Society for the Prevention of Cruelty to Animals, Canadians for the Ethical Treatment of Animals, Mercy for Animals, and Humane Canada.[31][32][33][34]

Alberta Milk, an industry advocacy group, argues that the separation of calves from their mothers is not unethical because quickly separating calves results in a much smaller risk of sickness and the mother quickly forgets about her child.[35] However, a 2019 review found no consistent evidence in support of early separation for cow and calf health,[36] and a 2008 review states that early weaning causes distress to both cow and calf.[37]

The Ontario Ministry of Agriculture is currently in favour of dehorning and disbudding, stating that it provides economic benefits and increases safety.[38] It also takes the position that dehorning and disbudding without anaesthesia is inhumane and unethical, but there is no requirement for anaesthesia use under the Ontario Society for the Prevention of Cruelty to Animals Act.[39] No dairy industry practices are prohibited in the Criminal Code of Canada, including painful invasive procedures done without the use of painkillers.[40] A 2007 review stated that dehorning and similar mutilations are not necessary for safety.[41]

“ProAction” is a program started in 2010 by the Dairy Farmers of Canada, a dairy advocacy group. Dairy farms may join this program voluntarily. Farms that are a part of this program must ensure bedding, enough room for calves to turn 180 degrees, enough room for adult cattle to stand up, visual contact with other cattle, medical care is provided, injuries and lameness are recorded, and no cattle are docked.[42] Painkillers are also supposed to be used at the farmer's discretion during painful invasive procedures.

The penalties for violating animal care standards of this voluntary program are not listed on the program's website, nor are the training standards for their industry-sponsored inspectors.[43] Additionally, member farms are not listed, compliance rates are not given, and proAction currently has no label requirements to indicate which products were produced by member farms.[44]

Environmental impact

Further information: Environmental impact of meat production

The Canadian dairy industry is responsible for 20% of total green house gas (GHG) emissions generated in Canada by livestock agriculture, which is made up of the dairy, poultry, swine and beef industry.[7] 90% of the GHG emissions caused by Canadian dairy farming occurs as a result of events on the farm, whereas only 10% GHG emissions are emitted as a result of off farm processes such as the producing and refining processes.[7] The greatest amount of GHG that is produced by Canadian dairy cows occurs at the time of lactation.[45]

GHG emissions from dairy farms in Western Canada are typically lower than in Eastern Canada, primarily as a function of climate and raw milk production processes in comparison to the climate and milk production processes utilized in Eastern Canada. Consequently, the Eastern provinces of Canada contribute to 78.5% of GHG emissions created by the Canadian dairy farming industry.[7]

Feed sources and greenhouse gas emissions

The type of feed utilized by Canadian dairy farmers significantly affects the amount of GHG emissions as a result of dairy production. Canadian dairy farmers commonly feed their cattle corn or barley silage as high nutrient food sources to increase milk production. Although corn and barley are both efficient and economic sources of feed, these two feed sources are responsible for large amounts of greenhouse gas (GHG) emission in Canada. While both of these types of feed contribute to significant amounts of GHG, research reveals that corn produces lower amounts of GHG in comparison to barley.[46] In examining the use of these two types of feed, comparison of measurements of CH4, N2O and CO2 suggests that total GHG emission in Canada produced by a single cow based on amount of milk production is 13% lower when the cow is fed corn compared to barley. Additionally, corn silage feed is attributed to higher milk production across dairy cows compared to barley silage feed.[46]

Despite the decrease in GHG in utilizing corn feed for Canadian dairy farms, when examining processing and transportation costs of feed for Canadian dairy farms, corn silage production is responsible for a 9% increase in CO2 compared to the processing and transportation costs associated with barley silage production. Despite higher rates of GHG due to transportation costs, Corn still results in lower rates of GHG overall.[46]

While corn and barley are two commonly used types of feed by Canadian dairy farmers, the feed source of the forage, alfalfa, while less commonly used is a feed source that would further decrease GHG emissions, in comparison to corn.[47]

Total Mixed Ration

Most dairy farms in Canada feed what is called a Total Mixed Ration (TMR). It is the act of combining a variety of feed stuffs into a large mixture that is mixed well and then fed to the cows. These rations vary among farms based on the farms goals and available feed sources. The goal of a TMR is to make every bite a cow eats the exact same so their feed intake can monitored and adjusted accordingly.[48] TMR pose many advantages to the cows health such as increased rumen activity which leads to less acid build up and in turn more feed absorption which leads to higher milk production.[48]

Organic farming

dairy cow

Both organic and conventional dairy farms exist across Canada. Organic dairy farming in Canada is far less prevalent however, this is primarily due to widely held misconceptions that organic farming is unprofitable and risky, as organic farming is attributed to a significant degree of self-sufficiency for all aspects of production. Consequently, conventional farming is perceived as being highly advanced technologically, utilizing efficient fertilizers and automated processes throughout the farm, driving down costs associated with physical labour. Conventional farming is, therefore, widely perceived as being the more modern and economically successful method of dairy farming in Canada.[49]

Contrary to this belief, costs associated with organic farming are substantially lower than costs incurred by conventional farming. Organic Canadian dairy farms have been shown to have a lower overall cost of production and are more self-sufficient in terms of plant and animal nutrient recycling and restocking of livestock herds. In contrast, the larger economic surplus enjoyed by conventional dairy farms in Canada is often offset by extra costs associated with importing fertilizers, seed, and replacement cattle, making conventional farming no more economically profitable than organic farming.[49]

See also

• Agriculture in Canada
• Supply management (Canada)
• Cheese in Canada

References

1. "An Overview of the Canadian Agriculture and Agri-Food System 2012; Agriculture and Agri-Food Canada".
2. Government of Canada. (2018). Number of farms, dairy cows and heifers. Retrieved from http://www.dairyinfo.gc.ca/index_e.php?s1=dff-fcil&s2=farm-ferme&s3=nb
3. "Canadian Dairy Information Centre; Dairy Facts and Figures; Number of Farms, Dairy Cows and Heifers".
4. "Ending supply management: An opportunity for Canada". www.newswire.ca. Retrieved 2018-05-06.
5. https://dairyfarmersofcanada.ca/en/dairy-in-canada
6. "Dairy Farmers of Canada "Our Economic Contribution"".
7. Vergé, X. P. C., Maxime, D., Dyer, J. A., Desjardins, R. L., Arcand, Y., & Vanderzaag, A. (2013). Carbon footprint of Canadian dairy products: Calculations and issues. Journal of Dairy Science, 96(9), 6091 - 6104. doi: 10.3168/jds.2013-6563
8. Heminthavong, K. (2015). "Canada's supply management system". Research publications. Library of Parliament. Retrieved 2020-03-03.
9. "Supply Management: Most Canadians say scrapping system should be on the table during NAFTA talks - Angus Reid Institute". Angus Reid Institute. 2017-08-01. Retrieved 2018-05-06.
10. "Canadians' opinions mixed on supply management". Policy Options. Retrieved 2018-05-06.
11. Dairy Farmers of Canada. (2017). Why supply management works for Canadians. Retrieved from https://www.dairyfarmers.ca/what-we-do/supply-management/why-supply-management-works-for-canadians
12. "Our History". Dairy Farmers of Canada. Retrieved October 19, 2013.
13. Hall Findlay, Martha; Margarita Gres (June 2012). "SUPPLY MANAGEMENT: PROBLEMS, POLITICS – AND POSSIBILITIES" (PDF). The School of Public Policy SPP Research Papers. University of Calgary School of Public Policy. 5 (19): 1–33. Archived from the original (PDF) on October 21, 2013. Retrieved October 19, 2013.
14. "Milk, for all it's worth: How prices are set", The Chronicle Herald, December 21, 2013, retrieved June 14, 2018
15. The Canadian dairy commission: a 40-year retrospective (PDF). Canadian Dairy Commission. 2006. ISBN 0-660-19641-7.
16. Busby, C. & Schwanen, D. (2013). Putting the market back in dairy marketing. Commentary – C.D. Howe Institute, (374), http://search.proquest.com/docview/1322893997
17. "Time to end Canada's milk, egg and poultry protectionism | The Star". thestar.com. Retrieved 2018-05-06.
18. "Supply management costs poor families five times more relative to household income: study". National Post. 2015-02-27. Retrieved 2017-12-17.
19. "'Cheese ninjas' to the rescue: Why Canada's supply management system needs reform". Financial Post. 2017-12-20. Retrieved 2017-12-20.
20. "Supply management is literally driving tens of thousands of Canadians into poverty". Financial Post. 2016-08-31. Retrieved 2018-01-08.
21. "Why is Canada letting dairy farmers imperil NAFTA?". Retrieved 2017-12-06.
22. "What the standard is and is not".
23. Canadian Food Inspection Agency (2013). Biosecurity for Canadian dairy farms: National standard. http://books1.scholarsportal.info/viewdoc.html?id=/ebooks/ebooks0/gibson_cppc/2013-06-28/1/10690986
24. McGregor, Janyce (October 5, 2015). "Trans-Pacific Partnership offers dairy sector good news, bad news and a question mark: The deal marks a nudge toward competitive change, but more uncertainty than the dairy sector is used to". CBC News. Retrieved July 11, 2018.
25. "A survey of dairy calf management practices in Canada that affect animal welfare".
26. Thomsen, P.T.; Houe, H. (2006). "Dairy cow mortality. A review". Veterinary Quarterly. 28 (4): 122–129. doi:10.1080/01652176.2006.9695218. PMID 17205832.
27. "A review of the causes of poor fertility in high milk producing dairy cows".
28. Torres, Bob (2007). Making a Killing: The Political Economy of Animal Rights. ISBN 9781904859673.
29. "Hot topic: Management of cull dairy cows—Consensus of an expert consultation in Canada".
30. "The Welfare of Cull Dairy Cows - Position Statement".
31. "Dairy farming in Canada".
32. "Dairy cows".
33. "Canada Dairy".
34. "Realities of Farming in Canada".
35. https://albertamilk.com/ask-dairy-farmer/why-do-you-take-the-calf-away-from-its-mother-so-q/
36. "A systematic review of the effects of early separation on dairy cow and calf health".
37. "Understanding weaning distress".
38. http://www.omafra.gov.on.ca/english/livestock/dairy/facts/09-003.htm
39. "Ontario Society for the Prevention of Cruelty to Animals Act, R.S.O. 1990, c. O.36".
40. "Criminal Code of Canada".
41. Zollitsch, Werner, ed. (2007). Mutilations in organic animal husbandry: ethical dilemmas?. ISBN 9789086860463.
42. "Animal Care Validation Requirements".
43. "Technical Resources Overview".
44. "Technical Resources Overview".
45. Mc Geough, E.J.; Little, S.M.; Janzen, H.H.; McAllister, T.A.; McGinn, S.M.; Beauchemin, K.A. (2012). "Life-cycle assessment of greenhouse gas emissions from dairy production in eastern canada: A case study". Journal of Dairy Science. 95 (9). 5164. doi:10.3168/jds.2011-5229. PMID 22916922.
46. Guyader, J., Little, S., Kröbel, R., Benchaar, C., & Beauchemin, K. A. (2017). Comparison of greenhouse gas emissions from corn- and barley-based dairy production systems in Eastern Canada. Agricultural Systems, 152, 38-46. doi: 10.1016/j.agsy.2016.12.002
47. Hawkins, J.; Weersink, A.; Wagner-Riddle, C.; Fox, G. (2015). "Optimizing ration formulation as a strategy for greenhouse gas mitigation in intensive dairy production systems". Agricultural Systems. 137: 1–11. doi:10.1016/j.agsy.2015.03.007.
48. "Total mixed rations". Milkproduction.com. 2000-10-03.
49. Stonehouse, D. P., Clark, E. A., & Ogini, Y. A. (2001). Organic and conventional dairy farm comparisons in Ontario, Canada. Biological Agriculture & Horticulture, 19(2), 115-125. doi: 10.1080/01448765.2001.9754916

External links

• History of dairy farming in Canada