The Industry > Responsibilities
Traditionally, provinces have used a variety of pooling calculations to equalize milk producer revenue. Pooling the proceeds from the sale of milk enables producers to receive an average price per hectolitre or per kilogram of milk component based on total sales. This concept of pooling became national in scope in August 1995 with the implementation of a system of pooling returns for sales of milk for use by further processors and exporters.
A number of federal government departments also have responsibilities relating to the dairy sector. Agriculture and Agri-Food Canada's mandate includes dairy and livestock research, policy development, as well as market and rural sector promotion. The Canadian Food Inspection Agency is responsible for the establishment of dairy product standards, product grading, plant inspection, regulating packaging and nutritional labelling, animal health and the monitoring of the safety of dairy products.
Imports of many dairy products are subject to tariff rate quotas (TRQs) administered by International Trade Canada. The Canada Revenue Agency is responsible for the classification and valuation of of goods under the TRQ regime.
Provincial marketing boards and agencies govern the production and marketing of milk within their own borders. Marketing activities related to industrial milk are carried out under concurrent federal and provincial legislation.
In order to manage the marketing of milk, provincial governments delegate statutory powers to either provincial agencies or marketing boards. Although responsibilities vary from province to province, boards and agencies generally license producers, allocate milk quotas, and establish or negotiate the prices or accounting values charged to processors, according to the milk's end use.
Several provincial marketing authorities are elected producer boards. They are funded by producers and function independently of government structures, although they are subject to government supervision. In about half of the provinces, marketing is regulated by government agencies. Many of the provincial agencies establish shipping rates through negotiations with representatives of milk transportation firms. Provincial Ministries of Agriculture also manage and control dairy quality programs and set sanitary standards at the production and processing levels.
For more detailed information on provincial dairy policies, please contact your provincial dairy marketing board.
Top of page Printer FriendlyLast Updated: 2005-11-04
