Dairy Industry Flashcards
Importance of dairy farms
-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
Canadian dairy production
Between 9-10 million tonnes per year
-organic and goat milk increasing
-549 milk processing plants
**2nd largest animal sector after red meat
Milk quota by province
-amount of milk allowed to be produced
>mostly ON and QC
>BC and AB next
Milk imports
US, UK, NZ, Australia
Milk exports
US, KSA, Australia, Kuwait
Canadian dairy genetics
-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
How much of Canadian beef comes from dairy breeds?
25%
-genomics and planned breeding for dairy beef crosses which can hopefully be better for feedlots
Herd Size
Fewer farms, fewer cows BUT larger more efficient dairies
-avg herd=104
Total milk production
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
Order of herd sizes in countries
- NZ: 440 cows/herd
- USA: 316 cows/herd
- UK: 231 cows/herd
- Western Canada: 183 cows/herd
- Ontario: 100cows/herd
- Quebec: 83cows/herd
- EU: 13 cows/herd
- 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
Future demographics of dairy producers
-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
Two types of system management
- Free market
- Supply managed
Free market
-price determined by supply and demand= New Zealand
-USA, AU, EU: free market but involves government subsidies
Supply managed
-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
Where did supply management system come from?
Came from producer groups
-Canadian Dairy Commission: 1969
-response to market instability
-provincial boards had greater leverage (occur within provinces)
3 main goals of supply management
- planned domestic production
- administering pricing
- import controls