Concentrated milk and cream market in Canada

Earlier Report Observations

From 2018 to 2023, the Canadian market for concentrated milk and cream saw a steady decline in physical volume, contracting from 67 099 t to 62 097 t. In value terms, however, the market grew from 140.8 million $ US to 159.7 million $ US over the same period, with a peak of 161.2 million $ US in 2022, reflecting rising average prices that offset the lower tonnage.

The market operated within Canada's structured dairy sector. By 2024, a consumer shift back towards higher-fat milk and cream products was noted, affecting the allocation of raw milk among dairy lines. At the same time, ongoing reviews of trade agreements like CUSMA and the domestic supply management system continued to influence market access and the regulatory framework for milk classes.

Broader industry trends included consolidation, with the number of dairy farms falling from over 12 000 in 2014 to around 9 250 in 2024, while overall milk production rose due to technological advances. For concentrated milk and cream, strong underlying demand and lower feed costs in 2024 supported a positive environment for producers despite the prior volume contraction.

Production concentrated milk and cream in Canada

In kind, 2017-2020, t

Between 2017 and 2020, Canada ranked 16th globally in the production of concentrated milk and cream.

Top producers of concentrated milk and cream, 2017-2020

World map of production of concentrated milk and cream, 2017-2020

Canada's production of concentrated milk and cream declined for the second year in a row. In 2020, output reached 64 303 tonnes, down slightly by 2.3% from the previous year. Production peaked in 2018 at 66 733 tonnes, which also saw the largest annual increase of 1.8%.

Annual dynamics of production in Canada in kind, 2017-2020, t

In value, 2017-2020, M $ US

In 2020, the value of concentrated milk and cream production in Canada was 146.6 million US dollars, showing minimal change compared to 2019. Over the 2017-2020 period, production value fell by 3.4%, with a compound annual growth rate of -1.2%. The lowest value was recorded in 2018 at 141.0 million US dollars, which also experienced the largest decline of 7.2%. In contrast, 2019 saw the biggest increase of 4.1%.

Annual dynamics of production in Canada in value, 2017-2020, M $ US

Exports concentrated milk and cream from Canada

Exports in kind, t

Canada's exports of concentrated milk and cream fell for the second consecutive year. In 2020, shipments abroad totaled 330 tonnes, a significant drop of 34.3% year-over-year. From 2017 to 2020, exports decreased by 17.5%, with a compound annual growth rate of -6.2%. The highest export volume was in 2018 at 578 tonnes, which also recorded the largest annual increase of 44.5%.

Annual dynamics of product's exports from Canada in kind, 2017-2020, t

From 2017 to 2020, the United States was the dominant destination for Canada's concentrated milk and cream exports in volume terms, accounting for 85.1% of total flows, while all other markets combined made up the remainder.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from Canada in kind, 2017-2020

Exports in value, K $ US

Canada's export value of concentrated milk and cream declined for the second year in a row. In 2020, exports stood at 752 thousand US dollars, marking a sharp decrease of 32.8% compared to the previous year. Between 2017 and 2020, export value fell by 18.8%, equivalent to an annualized rate of -6.7%. The peak was in 2018 at 1 221 thousand US dollars, which also saw the largest increase of 31.8%.

Annual dynamics of product's exports from Canada in value, 2017-2020, K $ US

Throughout 2017-2020, the United States played a dominant role in Canada's concentrated milk and cream exports in value terms, consistently representing 90.6% of total flows.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from Canada in value, 2017-2020

Imports concentrated milk and cream to Canada

Imports in kind, t

In 2020, Canada imported 1 220 tonnes of concentrated milk and cream, reflecting a substantial decline of 22.4% from 2019. The lowest import volume was in 2018 at 944 tonnes, while the highest was in 2019 at 1 572 tonnes. The largest decrease occurred in 2018 at 22.6%, and the biggest increase was in 2019 at 66.5%.

Annual dynamics of product's imports to Canada in kind, 2017-2020, t

From 2017 to 2020, the import market for concentrated milk and cream in Canada was highly concentrated, with the United States alone responsible for 95.2% of total imports in volume terms.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to Canada in kind, 2017-2020

Imports in value, K $ US

Canada imported approximately 1 024 thousand US dollars worth of concentrated milk and cream in 2020, representing a robust reduction of 20.0% from the previous year. Over the 2017-2020 period, import value decreased by 5.1%, with a compound annual growth rate of -1.7%. The maximum value was recorded in 2019 at 1 280 thousand US dollars, which also saw the largest increase of 23.6%.

Annual dynamics of product's imports to Canada in value, 2017-2020, K $ US

Between 2017 and 2020, imports of concentrated milk and cream to Canada in value terms were highly concentrated on the United States, which accounted for 93.2% of total flows.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to Canada in value, 2017-2020