1 – Dairy Industry Flashcards
1
Q
Dairy industry importance
A
- Increasing worldwide
o Bigger developed class that demands dairy products - **Canada (and US): highest yields/cows
- Significant growth forecast in South Asia and Africa
- India: ¼ of worldwide production and predicted to increase by 1/3 in next 10 years
- *global production: 887 million tonnes
2
Q
Canadian dairy production
A
- 9.6 million tonnes
o Gradual annual increase
o Growing organic milk and goat milk - *Second largest animal agriculture sector (after red meat)
- 549 milk processing plants
- *QB is largest, then ON, western Canada (1/4)
3
Q
Where does Canada import milk from?
A
- IMPORT more than we EXPORT
o Continually importing more but not exporting more - US, UK, NZ, Australia
4
Q
Where does Canada export milk to?
A
- US, KSA, Australia, Kuwait
5
Q
Genetic quality of Canadian dairy stock
A
- 41% of total worldwide exports of breeding cattle and embryos
- EXPORT more than we IMPORT
- *25% Canadian beef is from dairy breed animals
6
Q
What are the genetic markets that Canada exports to?
A
- US, Spain, Germany, Brazil, Australia
7
Q
Herd size
A
- Consolidation: few farms, fewer cows
o Larger, more efficient dairies (average 104cows/herd)
o More milk produced - *now at 27.3kg/cow/day: 4.5-fold increase in efficiency since 1967
8
Q
Herd sizes in the world
A
- Biggest in NZ (440 cows/herd)
- USA
- UK (due to FMD increased to 231 cows/herd)
- Western Canada (183 cows/herd)
- ON (100)
- QB (83)
- EU (13, some smaller countries bring it down)
- India (1-5 cows/herd)
- *harder to get quota in QB and ON=harder to join farms and land is more expensive
9
Q
Future demographics for Canadian dairy farms?
A
- Older producers (more over 60 and 50=half of the producers of Canada)
o Less generational shift - QB: large proportion of industry is smaller herds with older producers
o More consolidation and increase in average herd size
10
Q
2 systems for ‘selling’ milk
A
- Free-market
- Supply-managed
11
Q
Free-market
A
- Price determined by supply and demand
o Demand limited=prices increase - NZ
- Government subsidies
o USA: 43% dairy income
o Australia: 56%
12
Q
Supply-managed
A
- Canada
- Milk production set to meet domestic needs
- Production controlled by quotas
- Price set to reflect cost of production: aims for a fair price for the farmer
13
Q
Where did supply management come from/why do we have it?
A
- Response to market instability
- Provincial boards had greater leverage
- Only within province
- Canadian Dairy Commission: 1969
14
Q
3 components of supply management
A
- Planned domestic production
- Administering pricing
- Import controls
15
Q
Milk quota
A
- Producer gains the right to sell a specified amount of milk for a pre-agreed price
- *calculated by production of BUTTERFAT
16
Q
What are the different types of quota?
A
- Fluid
- Market share
- *combined for each farmer (ex. important in SK)
17
Q
Where is the one milk processing plant in SK?
A
- Saskatoon (Saputo)
o Only does milk processing NOT fluid milk
o Get fluid milk from other western provinces
18
Q
Fluid quota
A
- Provincially controlled to meet demand of fresh milk
19
Q
Market share quota
A
- Federally set
- Provincially administered for manufacturing
20
Q
How does supply management work?
A
- Producers pay to cover administration of system
- *continuous quota: either in + or – credit
21
Q
What is the equation for the # of credit days?
A
- # of credit days = (actual butterfat production – monthly quota) divided by daily quota
- > 0 positive credit days: not paid for extra milk
- > 15 negative credit days: cannot recoup lost credit days (ex. lose your quota)
22
Q
Transfer of credits
A
- Allows flexibility between producers
- Maintains provincial production
- CANNOT transfer beyond LEGAL limits
- *incentive days
23
Q
Incentive days
A
- Occurs when provincial milk supply is low (ex. in fall as cows that calved in spring are in late lactation and producing less)
- Extra credits provided
- Allows for increased production w/o running into positive credits
24
Q
Buying/selling quota: in SK
A
- Private sales: ENTIRE quota must be sold to a single individual
- No producer may possess >4% provincial quota
o Natural disasters: prevents a bigger problem
25
Transfer exchange in SK
- Operated by SaskMilk
- Offers to sell and buy at prices requested by producers
- Board establishes market clearing price
- Ex. October: cost $58,000/cow (1.4kg/cow)
26
What is the future of supply management in Canada?
- Always a worry deregulation could happen
o Obstacle: amount of quota! Would need to compensate.
27
What happens when things become deregulation? (ex. EU in 2015)
- Subsidies were provided to farmers
- *prices get more volatile
o Larger dairies can handle it more (cost per cow is lower, can get deals on fuel and feed)
- *decrease in number of dairies and more larger dairies
28
What areas of dairy production are most important to control?
- Animal welfare
- Food safety
- Environmental impact
- Anti-microbial use
29
proAction modules
- Food safety
- Animal care
- Biosecurity
- Environment
30
Food safety in dairy
- proAction food safety module (hazard analyze critical control program: HACCP)
o 4 modules
- *mandatory to produce milk
- *critical control points and objectives
31
Critical control points in food safety
- milking treated animals
- cooling and storage of milk (need to write down T within 30mins of milking)
- shipping animals (especially if treated)
32
What are the objectives of food safety?
- Prevent pathogens and pharmaceuticals from entering food supply
- Includes veterinary natural health products
33
Milk quality testing
- Testing each pickup from farm
- Negative for vet drug residues and antimicrobial substances
o Used to only be beta-lactams
o List of what is being testing is NOT released
- Aerobic bacteria count: <50,000 CFU/ml
- SSC <400,000 cells/ml (get premium if it is lower!)
- Freezing point: <-0.525 (ensure no water has been added)
34
Antimicrobial use and resistance
- *Significant changes/restrictions
- Extra-label use only with written veterinary directions (proAction food safety module)
- Antimicrobial resistance surveillance (CaDNetASR)
35
Animal welfare
- Code of practice, proAction Animal Care and biosecurity modules
- Requirements and recommendations are laid out
- Various categories
- Formal welfare audits: scheduled and random
36
Animal welfare categories in proAction
- Housing
- Feed and water
- Animal health and biosecurity
- Handling and shipping animals
- Staff training and communication
37
Welfare audits
- BCS
- Hock score
- Knee score
- Neck Score
- Mobility score
- *sample size is based on size of dairy
- *green=good
- *yellow=recommended
- *red=required
38
Dairy farming and the environment
- Efficiency is KEY! (higher production per cow=decrease GHG/kg milk)
- *proAction environmental module
39
proAction environmental module
- Environmental farm plan
- Questionnaire on soil health, greenhouse gases, biodiversity, silage seepage, plastic waste
- Wastewater management
- Manure storage
- Soil nutrient management
40
Carbon footprint in Canada: 1944 vs. 2017
- 1944: 24 million tonnes CO2 (3.6 GHG/kg milk)
- 2017: 11-14 million tonnes CO2 (1.3 GHG/kg milk)
