Dairy Industry Flashcards

1
Q

Importance of dairy farms

A

-increasing worldwide
-Canada and US has highest yields/cow (small numbers but lots of milk)
-India yields the highest amount of milk in a country; expected to increase by 1/3rd

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2
Q

Canadian dairy production

A

Between 9-10 million tonnes per year
-organic and goat milk increasing
-549 milk processing plants

**2nd largest animal sector after red meat

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3
Q

Milk quota by province

A

-amount of milk allowed to be produced
>mostly ON and QC
>BC and AB next

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4
Q

Milk imports

A

US, UK, NZ, Australia

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5
Q

Milk exports

A

US, KSA, Australia, Kuwait

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6
Q

Canadian dairy genetics

A

-41% total worldwide exports of breeding cattle and embryos
($121.7 million for genetic exports; imports $16.7million)

**other genetic markets: US, Spain, Germany, Brazil, Australia

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7
Q

How much of Canadian beef comes from dairy breeds?

A

25%
-genomics and planned breeding for dairy beef crosses which can hopefully be better for feedlots

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8
Q

Herd Size

A

Fewer farms, fewer cows BUT larger more efficient dairies
-avg herd=104

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9
Q

Total milk production

A

1967: 6.8 million tonnes (6kg per cow per day)

2022: 9.6 million tonnes (27.3kg/cow/day)

**4.5 fold increase in efficiency

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10
Q

Order of herd sizes in countries

A
  1. NZ: 440 cows/herd
  2. USA: 316 cows/herd
  3. UK: 231 cows/herd
  4. Western Canada: 183 cows/herd
  5. Ontario: 100cows/herd
  6. Quebec: 83cows/herd
  7. EU: 13 cows/herd
  8. India: 1-5 cows/herd

**ontario and quebec- harder to get quota; expensive land
**western Canada: easier to get land so easier to get quota

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11
Q

Future demographics of dairy producers

A

-older producers (more than 50%) and younger generations are less likely to take these over when they retire

-This may lead to rapid increase in herd sizes by consolidating these farms and quota

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12
Q

Two types of system management

A
  1. Free market
  2. Supply managed
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13
Q

Free market

A

-price determined by supply and demand= New Zealand

-USA, AU, EU: free market but involves government subsidies

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14
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

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15
Q

Where did supply management system come from?

A

Came from producer groups
-Canadian Dairy Commission: 1969
-response to market instability
-provincial boards had greater leverage (occur within provinces)

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16
Q

3 main goals of supply management

A
  1. planned domestic production
  2. administering pricing
  3. import controls
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17
Q

Milk quote

A

The producer gains the right to sell a specified amount of milk for a pre agreed price

18
Q

How is milk quota calculated?

A

By production of butterfat

**need to test freezing point of milk to ensure that it hasn’t been watered down

19
Q

Types of quota

A
  1. Fluid: provincially controlled to meet demand of fresh milk
  2. Market share: federally set, provincially administered for manufacturing
20
Q

Manufacturing in Saskatchewan?

A

-Manufacturing plant in Saskatoon: milk pools together from western Canada and produces market share milk

-Then SK receives fluid milk from other areas of western Canada

21
Q

How does quota system work?

A

-producers pay to cover administration of system

-Have a continuous quota= producers either in positive or negative credit (over or under production)
*calculate through # of credit days

22
Q

of credit days calculation

A

of credit days= (actual butterfat production- monthly quota)/daily quota

> 0 positive credit days= no $
15 negative credits: cannot recoup lost credit days= lose quota

23
Q

Transfer of credits

A

Allows for flexibility between producers while maintaining provincial production
-cannot transfer beyond legal limits

24
Q

Incentive Days

A

Occur when milk provincial supply low
-extra credits provided for free= allows for increased production without running into positive credits

25
Q

Buying and selling quota

A
  1. Private sales- entire quota must be sold to a single individual

2.No producer may possess more than 4% provincial quota

  1. Transfer exchange
    -operated by SaskMilk
    -offers to sell and buy at prices requested by producers
    -board establishes market clearing price
26
Q

Worth of an avg Western Herd

A

~11 million dollars on avg tied up in Western Herd

27
Q

What jurisdictions are deregulated? (no supply management)

A

-Australia
-New Zealand= free market
-USA= free market
-Europe

28
Q

What happens on deregulation?

A

-farmers get subsidies initially
-slight increase and then decrease in profit
-milk prices get more volatile
*large dairies can have more success because costs per individual cows is low
-see less dairies, but more larger ones

29
Q

USA dairies

A

-need to have more than 1000 cow dairies to make it commercially because its deregulated

30
Q

proAction food safety module

A

Includes:
-HACCP program- critical control points to produce safe milk
-Mandatory to produce milk

31
Q

Critical control points in the program

A
  1. milking treated animals
  2. Cooling and storage of milk- needs to be between 1-4C within 30mins
  3. Shipping animals- need to make sure that if animal treated that information is passed on so medication does not reach food
32
Q

Objectives for food safety program

A

-prevent pathogens and pharmaceuticals entering food supply
-includes vet health products

33
Q

Milk quality testing

A

-testing upon each pickup
-needs to be negative for vet drug residues and antimicrobial substances
-list of what is being tested for is not released

34
Q

Milk quality cell counts

A

Aerobic bacteria count < 50,000 cru/ml

SCC <400,000 cells/ml

Freezing point <-0.525C (this ensures they are not putting water in milk)

35
Q

Antimicrobial use and resistance

A

-extralabel use only with written vet directions (proAction food safety module)

-Also have AMR surveillace network. These are sentinel herds that are used to tract antimicrobial uses. Sites are located near the human sites so it can all be coordinated together

36
Q

Animal welfare

A

-Code of practice & and proAction Animal Care and Biosecurity modules

-has requirements and recommendations that must be met or action can be taken against you

-formal welfare audits (scheduled and random)

37
Q

Categories of animal welfare in dairies

A

-Housing
-Feed and Water
-Animal health and biosecurity
-handling and shipping animals
-staff training and communication

38
Q

Welfare audits

A

-Look at animals BCS, hock score, knee score, neck score, mobility score

-Select a certain number of animals

-In dark red zone, need assessment in 12mths with a larger sample size
-in green, all good
-in between, need to have corrective action plans

39
Q

Dairy and the environment

A

-higher production=decreased GHG/kg milk

-every farm in canada has an environmental farm plan

-involves wastewater management, manure storage, soil nutrient management

40
Q

Components of questionnaire used for environmental farm plans

A
  • soil health
    -greenhouse gases
    -biodiversity
    -silage seepage
    -plastic waste
41
Q

Carbon foot print in Canada

A

1944: 24mil tonnes CO2

2017: 11-14 mil tonnes CO2