Fact sheets

This section provides you with everything you have always wanted to know about the Canadian Dairy Commission and the Canadian dairy industry.

Click on the tabs below for facts and statistics about the CDC and the dairy industry.  You can also download handy fact sheets about each topic.

 

The Canadian Dairy Commission

Our role

The CDC at a glance

  • Crown corporation was established in 1966 by the Canadian Dairy Commission Act
  • Based in Ottawa
  • Over 70 employees
  • Dairy year: from August 1 to July 31

Key facilitator for the Canadian dairy industry and serves to:

  • Regulate the supply for dairy products
  • Manage the milk supply
  • Monitor the production, processing, and marketing of dairy products
  • Manage milk classes with the provinces
  • Manage the national market revenue pooling system on behalf of the dairy sector
  • Promote dairy ingredients
  • Harmonize

Our Mandate

Fair compensation: Provide consumers of milk and cream with the opportunity to obtain a fair return for their labour and investment.

Efficient supply: Provide consumers of dairy products with a continuous and adequate supply of dairy products of high quality.

Our Vision

Provide leadership that stimulates Canada's dairy industry for the benefit of Canadians.

Our Values

Excellence - Integrity - Leadersnip - Respect

Our Areas of Activity

 

Caption text
Setting the price of milk Goal: To ensure fait compensation to producers and provide consumers with access to a quality product
Managing supply and establishing quotas Goal: To minimize the risks of shortages and surpluses
Adjusting supply
Purchasing and storing dairy products throughout the seasons
Goal: To deal with seasonal fluctuations in supply and demand
Programs of the CDC Goal: To promote innovation through our programs
Imports
Managing tariff rate quotas for butter (WTO)
Goal: To ensure that imports of dairy products are in conformity with international agreements

Milk: A mobilizing industry

Canada

  • In Canada, there are more than 10,300 dairy farms, with a total of nearly 970,000 cows
    • Quebec and Ontario have the greatest percentage of dairy farms at 81%
    • The average farm has 92 cows and an average annual production of 37,003 kg of butterfat
  • More than 27,000 people work in the dairy processing sector

Two main markets

  • Fluid milk about 27%
  • Industrial milk about 73%

The Canadian dairy industry ecosystem

The Canadian Dairy Commission is at the heart of the industry and ensures a good fit between the partners’ different needs and interests.

Industry logos

 

Download the Canadian Dairy Commission Fact Sheet

 

Fact sheet about the CDC

 

Fact sheet about the Canadian Dairy Commission

 

 

Supply management

Our role

Created in 1971, supply management is a collective marketing Canadian agricultural policy intended to:

  • Ensure local production of high quality foods
  • Guarantee producers a stable and equitable income derived entirely from the marketplace
  • Avoid depending on government subsidies and the dumping of surpluses into third markets

It’s a social contract between producers, processors, and consumers, with one objective: transparency and quality throughout the country.

An industry committed to offering a quality product

Nothing is left to chance in milk production: implementing the best practices and the industry’s highest standards result in offering Canadians a product that is:

Caption text
Of superior quality 100% Canadian Socially responsible

Sustainable development

Canadian milk is able to minimize its carbon footprint thanks to:

  • Better use of agricultural waters.
  • Constantly seeking better practices with respect to reducing GHG emissions, the use of renewable energies and technological tools.

Animal welfare

Animal welfare is a must for producing high-quality milk. 

Milk producers ensure cow comfort on a daily basis and can rely on experts in the fields of nutrition and animal health.

Compliance with standards

Among the highest in the world, the standards followed by producers ensure the high quality of Canadian milk:

  • Milk composition
  • Safety of dairy products
  • Animal welfare

The proAction Program highlights producers’ achievements with respect to compliance with production standards, animal welfare standards and the best environmental practices.

Calculating the cost of milk production

The Canadian Dairy Commission plays the role of facilitator for all the links in the milk production chain.  It assesses production costs based on the reality of the producers and inflation.

 

Caption text
Assessing the cost of production for producers Cost of production includes farm costs, such as feed, veterinary care, seed, maintaining infrastructure, etc.  These costs are currently rising sharply.
Using that cost in the national formula The national formula is used to set the price adjustment percentage (%) that will be used by the provincial boards.
  • Price adjustment (%) = (50% of the change in the cost of production) + (50% of the Consumer Price Index)
Consultation with the various industry groups The various industry groups include producers, processors, restauranteurs, retailers and consumers.  Each group can make their case.
CDC approval of the producer price The producer price determined by the CDC is calculated for all dairy products, also called "milk classes" (milk, cheese, butter, yogurt etc.)
Milk purchase by processors The processors buy the raw milk at the price determined by the provincial boards for each class of milk and produce dairy products.

The various dairy products: milk classes

Class 1: All milk and beverages (milk, cream, eggnog, etc.)

Class 2: Yogurts, sports milk drinks, ice cream etc.

Class 3: All cheese products

Class 4: Butter, butteroil and dairy products (concentrated or powder) for the food industry

Class 5: Dairy products used as an ingredient in the further processing sector

Download the Supply Management Fact Sheet

 

Supply management fact sheet

 

Supply management fact sheet

 

 

The CDC: a crucial role from coast to coast

Practical implications for Canadian milk producers and consumers

 

Caption text
Producers Consumers Government
Stable production revenues and better share of the retail price High quality groceries at a reasonable price Greater financial independence of the industry from government
Efficient and respectful agriculture on a human scale Quality Canadian milk without preservatives, antibiotics, or artificial growth hormones Sustainable growth of the industry from an environmental standpoint
Compliance with dairy safety standards, animal welfare standards, and milk composition standards among the highest in the world    

A proud and essential industry

Producers

"Producing milk that is as perfect as can be is what drives us to raise healthy cows, protect our land and resources, and ensure every glass of milk is safe and free of antibiotic residue.

Every day, we work to ensure Canadian dairy provides an enduring and valuable legacy for all Canadians."

~ Dairy Farmers of Canada

Processors

"Canada's dairy processors create jobs for more than 24, 000 Canadians in over 470 facilities across the country.  Dairy processing is the second-largest food manufacturing industry in Canada.  We purchase more than 9.2 billion litres of milk from Canada's 10, 000 dairy farms and contribute more than $16 billion to Canada's GDP each year."

~ Dairy Processors Association of Canada

Consumers

"Being governed by supply management, dairy products [...] have gradually increased in price, but generally at a slower rate than wages.  They are therefore more affordable today."

~ Free translation.  From the article "Panier d'épicerie : Les aliments vous coûtent-ils vraiment plus cher qu'avant?", ICI Radio-Canada, 2022.

Download the Canadian Dairy Commission: a crucial role from coast to coast

Fact sheet on the social impact of the CDC