Overview

The dairy processing industry represents a significant segment of the Canadian economy. In 2009, dairy processors shipped nearly $13.6 billion worth of products making up 15% of all products shipped by the Canadian food and beverage industry. About 26,800 people are employed in the processing of dairy products. The majority of these employees are concentrated in central Canada.

As of August 2009, the number of processing plants in Canada was 452. Of these plants, 272 were registered with the Canadian Food Inspection Agency (CFIA) entitling them to sell their products outside of their respective provinces. The majority of these processing facilities are located in Quebec and Ontario. A significant number of dairy plants are HACCP and ISO certified.

Over the past decades, the dairy processing industry has undergone a major rationalization. In 1965, there were 1,413 plants in Canada. In addition to rationalization, there has also been a trend towards expanding operations beyond the small regional scale on which dairies traditionally operated.

In Canada, fluid milk and cream production represents 38.5% of total milk production while the remaining 61.5% is dedicated to other manufactured dairy products.

Canadian Dairy Products and Ingredient Markets

In addition to these companies, there are a number of regional dairies that have strong market shares in their respective province. As well, the consolidation of the industry has left a gap in fine cheeses and other specialty products which is being filled by numerous small artisan cheese makers and dairies. This trend is particularly evident in Quebec. In addition to traditional dairy products such as Cheddar cheese, butter, ice cream and yogurt, Canada also manufactures value added products such as omega 3 milk, calcium added milk, ultra filtered milk, yogurt containing probiotics, organic dairy products and specialty cheeses. More than 660 fine and traditional cheeses, including raw milk, goat and ewe cheeses, are produced in various regions of the country and are recognized as some of the finest cheeses in the world.