Dairy Cows by Census Division, 1996

All About Canada's Dairy Industry

by Steve Boyd, Statistics Canada

Milk Means Big Business

Dairy farming generated more than $3.9 billion in farm sales in 1997. That's a lot of milk.

In fact, dairy farming is one of Canada's most important agricultural activities, ranking first in total farm sales in Quebec, Ontario and Nova Scotia in 1997, and second in British Columbia, Prince Edward Island, Newfoundland and Labrador and New Brunswick. Most of the dairy farms in Canada are in Quebec (37%) and Ontario (33%).

Table 1. Over Two Thirds of Canada's 1996 Dairy Herd was in Quebec and Ontario

Source: 1996 Census; Agriculture Profile of Canada, Statistics Canada Catalogue no. 93-356-XPB

In 1996 there were 30 900 farms reporting over 1.2 million dairy cows in Canada, a dramatic drop since 1971, when approximately 145 000 farms reported 2.3 million dairy cows. Although the number of cows has steadily declined, milk production has continued to climb (Figure 1).

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Figure 1. Fewer Dairy Cows are Producing More Milk Than Ever Before

Cows today are working harder than ever, and on much larger farms (Figure 2). In 1976 the average dairy farm in Canada reported having 21 dairy cows, whereas a typical farmer in 1996 reported 40 dairy cows. The increase in average milk production over the years can be attributed to better feeding, disease control and advancements in breeding. In 1997, Holstein dairy cows on official milk recording programs produced an average of 8697 kilograms of milk in 305 days of lactation, or about 28 litres of whole milk per day. In 1957, the average cow produced 15 litres of milk per day.

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Figure 2. Today's Farms Have More Cows Than in the Past

From the Cow to your Table

In the old days, milking the cows was a labour-intensive chore, but today milking is very automated. On the average farm, automatic milkers run by vacuum pumps are manually attached to the cows. After about four minutes, when milking is complete, the milker is removed and placed on the next cow. Some milking systems even warn when the cow has finished being milked, while others actually remove the milker automatically. There has also been some experimentation with "robot" milkers, which both attach and remove the milker automatically. Cows are usually milked twice a day, although some farms are milking three times a day.

Milk is kept on the farm in refrigerated storage tanks at not more than 4^oC, and every second day the milk is picked up and transported to the dairy in special bulk milk trucks. The milk is tested at the dairy for temperature, inhibitors, odour and flavour. Contaminated milk can be traced back to milk samples taken during pickup at the farm.

Milk is then pasteurized at 72^oC for 16 seconds to destroy organisms that can transmit diseases to humans. While being pasteurized, the fat is removed from the milk, creating skim milk. The milk fat is then added back in at varying percentages to produce homogenized or whole milk (3.25% fat), and 2%, 1% or skim (0.5% fat) milk. The hot milk is quickly cooled to between 1^oC and 4^oC and packaged in sterile containers.

In the 1996 to 1997 dairy year, approximately 77.5 million hectolitres of milk were produced in Canada. Canada has two markets for milk. One, for fluid milk consumption, is regulated by the provincial milk marketing boards. The other, for industrial uses such as cheese, butter, yogurt, and skim milk powder, is regulated federally by the Canadian Dairy Commission. Almost two-thirds of Canadian milk is used to make butter and cheese (Figure 3).

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Figure 3. Pie Chart of Total Milk Utilization

Variety is the Spice of Life

While the variety of products possible from something as simple as milk seems limited, there is actually considerable diversity. Over the last 20 years, many varieties of specialty cheeses, dairy desserts, yogurts and yogurt drinks, gourmet ice cream, and ice cream novelties have been added to the Canadian dairy case.

And it's Good for You!

As one of Canada's four basic food groups, dairy products combine great taste with nutritional value. Milk is an excellent source of calcium, phosphorous, protein, riboflavin, and vitamins A and D, and a good source of thiamin and vitamin B₁₂.

Consumption of whole milk has been declining while consumption of low-fat milks (skim, 1%) has been increasing, likely due to Canadian consumers' desire for a low-fat diet. While the consumption of ice cream and butter has steadily declined since 1979, consumers have increased consumption of cream, yogurt, and cheese. In 1997, the average Canadian consumed about 95 litres of milk and cream, 10 litres of ice cream, 2.5 kilograms of butter, and 11 kilograms of cheese.

DATA FOR THIS ARTICLE CAME FROM THE CENSUS OF AGRICULTURE 1971-1996, THE AGRICULTURE DIVISION OF STATISTICS CANADA (LIVESTOCK SECTION), AGRICULTURE AND AGRI-FOOD CANADA, THE CANADIAN DAIRY COMMISSION, THE DAIRY FARMERS OF CANADA, AND THE DEPARTMENT OF AGRICULTURAL, FOOD AND NUTRITIONAL SCIENCE, UNIVERSITY OF ALBERTA.

Dairy Genetics a Canadian Specialty

The Canadian dairy industry is recognized for its high quality cattle and high standards at both the farm and processing levels. Canada supplies about 20% of the world market for dairy genetics (i.e., cattle, embryos and semen).

It's Mostly There in Black and White

Over 90% of the dairy cows found in Canada are of the Holstein breed. Holsteins are typically black and white and are characterized by their large size and exceptional milk production. Ayrshire, Jersey, Guernsey and Brown Swiss are other breeds in the dairy industry.

Forty Cows and Family-owned

Find a typical dairy farmer, and chances are you'll find a man in his mid-forties who runs a family-owned operation of about 40 dairy cows. Most of his farm's revenue comes from milk production and the sale of dairy cattle.

But don't write women out of the picture too soon. According to the 1996 Census of Agriculture, almost 27% of the 51 500 operators on dairy farms in Canada were female. Their average age was 44 years, compared with 45 years for male operators. Female operators were also more likely to be on farms reporting two or more operators. In fact, only 4.5% (615) of the operators on one-operator dairy farms were female.

Dairy farmers are more likely to work long hours on the farm than operators of any other farm type. In 1996, 76% of all dairy farmers reported working more than 40 hours per week on the farm. Tobacco growers were second in terms of hours worked per week, with 69% working more than 40 hours. On the other hand, only 16% of maple syrup and Christmas tree producers-who often operate as hobby or part-time farmers-work more than 40 hours per week on their farms.

How Supply Management Works

Next time you order a tall, refreshing glass of milk in a restaurant, remember that the farmer receives only about 10% of its cost. It's an important fact to remember, considering that Canada's dairy industry operates differently than that of most milk-producing countries.

In the early seventies, the dairy industry became the first in Canada to operate under a national supply management system. The egg and turkey industries soon followed suit with their own legislation in 1972 and 1973. Supply management of chicken was introduced in 1978.

Supply management regulates imports and domestic production to ensure that demand matches production and meets the average producer's costs. Each producer owns a contract, or "quota" that specifies the amount of milk that producer can deliver. Farmers can't ship milk without owning quota. By keeping supplies steady, prices-and therefore incomes-are stabilized, while processors and consumers are guaranteed a consistent supply of high quality dairy ingredients and products at reasonable prices.

Milk quota-and the privilege of producing milk that goes with it- was initially given to producers in the early 1970s. Today, farmers wanting to produce milk must buy or sell quota through a "quota exchange." At monthly quota exchanges, producers determine in advance how much quota they wish to sell or purchase at the prices they wish to receive or are willing to pay. The price of quota for that month is determined by matching quota for sale and quota in demand.

Imports and exports are an important part of the equation in effectively matching supply and demand. In the past, Canada restricted imports by using import quotas. However, in December 1993, Canada signed a World Trade Organization agreement under the General Agreement on Tariffs and Trade (GATT) that substantially changed the way in which imports are controlled, so that all import quotas were replaced by tariffs as of January 1, 1995. Initially high, the tariffs on imports will decline by a minimum of 15% over the six years the agreement is in effect.

Data and Mapping Notes provides information regarding the 1996 Census data presented in the maps and references to mapping techniques used.

• Beef Cattle by Census Division, 1996 Map | Read about this map
• Small Farms by Census Division, 1996 Map | Read about this map
• Wheat Acreage by Census Division, 1996 Map | Read about this map

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