Canadian dairy sector gets boost to modernise and address labour shortage

On 5 February, Agriculture and Agri-Food Canada announced that up to US$89 million (CAN€61 million) would be available for 49 projects under the Supply Management Processing Investment Fund. This fund helps support processors in supply-managed sectors (cow milk, chicken egg/meat production) in addressing the impacts of recent international trade agreements.

Through this funding, processors of dairy, egg and chicken products will be able to buy new automated equipment to boost capacity and productivity. The equipment purchases could include milk pasteurizers, ultrafiltration systems and new robotic packaging systems.

More automation will help address the labour shortages that have been a problem in Canada’s dairy industry. Several years ago, the Canadian Agricultural Human Resource Council released a report with an outlook to 2029 that found “long hours on the job and the associated overtime costs could make it difficult for employers to retain workers and manage labour costs. People with the right skills and experience will remain in short supply.”

Dairy processors as a group

There are more than 20 dairy processors in Canada. These include Canadian firms like Gay Lea, Lactalis and Saputo, and international firms such as Denmark-based Arla Foods, China-based Canada Royal Milk and US-based Fairlife Coca-Cola.

Under the new funding scheme, Lactalis Canada’s cheese plant in Ingleside, Ontario, is set to receive up to $3.3 million (€2.3 million) for new automated cheese processing and packaging equipment.

Ontario funding

In addition to this funding, Agriculture and Agri-Food Canada also provided Ontario’s dairy processing sector with $8 million in January to help processors in that province modernise their businesses to improve efficiency and ensure food safety.

As with the other funding, this funding is allocated for new technologies that increase production efficiency, but cost-share support through this initiative can be used to help cover the purchase new or refurbished equipment as well as associated costs such as training. Each eligible applicant can receive up to $200,000 in cost-share support and applications open on 2 April.

Milk production in Ontario

Although the dairy industry of Quebec is the largest in Canada, in Ontario there are 171 licensed cow and goat dairy processors, plus additional sheep and buffalo dairy processors.

Canada’s largest sheep dairy farm opened near Toronto, Ontario in 2021. Demand for water buffalo milk formozzarella cheese is also strong in the province, as it’s where most immigrants settle and many come from cultures where buffalo dairy products are common.

Goat dairy farming is also largest in Ontario of all Canadian provinces – and growing. There has been an slow but steady increase in the Ontario dairy goat population of almost 14% over the last 8 years, and the Ontario population now represents about half of Canada’s goats. Most goat dairy farms in Ontario have 400-1000 goats.