Milk market in Canada

Earlier Report Observations

The Canadian milk market volume showed consistent growth from 9 498 thousand tonnes in 2018 to 9 923 thousand tonnes in 2023. This upward trend was initially supported by the Comprehensive Economic and Trade Agreement (CETA) with the European Union, which increased cheese imports while domestic demand for butter, cream, and yogurt remained strong. Marketing campaigns by Dairy Farmers of Canada targeting millennials and continuous investments in Quebec processing facilities helped sustain consumption. The COVID-19 pandemic in 2020 introduced supply chain disruptions and higher operational costs, but the national supply management system with production quotas allowed the market to adapt and continue expanding.

Between 2021 and 2022, the market reached 9 842 thousand tonnes before a slight dip to 9 769 thousand tonnes. Soaring global feed prices and extreme weather events, including droughts and floods, raised production expenses. Simultaneously, the Canada-United States-Mexico Agreement (CUSMA) expanded import quotas, adding more supply to the domestic market. A recommended 8.4% increase in farm-gate milk prices in early 2022, along with rising labor and input costs, moderated consumer demand, leading to the temporary contraction. Major investments of CAD 684 million in Quebec dairy infrastructure aimed to modernize production and counter these cost pressures.

By 2023, the market recovered to 9 923 thousand tonnes, benefiting from the earlier facility upgrades and stabilized conditions. The supply management framework, combined with expanded income-sharing among producers, provided structural stability throughout the period, enabling the industry to navigate trade liberalization and external shocks while maintaining overall consumption growth.

Production milk in Canada

In kind, 2017-2020, K t

Between 2017 and 2020, Canada was one of the world's leading milk producers, ranking 19th globally by production volume.

Top producers of milk, 2017-2020

World map of production of milk, 2017-2020

In 2020, Canada produced 9 641 K t of milk, marking a slight increase of 1.4% compared to 2019. Over the period from 2017 to 2020, production grew by 4.1%, which translates to an annualized rate of 1.3%. The largest increase occurred in 2018 at 2.8%, while the largest decline was recorded in 2019 at 0.1%.

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

In value, 2017-2020, M $ US

In 2020, Canada's milk output was valued at 17 885 M $ US, representing a 5.2% decrease compared to 2019. From 2017 to 2020, production value increased by 10%, with a compound annual growth rate of 3.2%. The minimum value was recorded in 2018 at 15 714 M $ US, while the maximum value occurred in 2019 at 18 857 M $ US. The largest increase was in 2019 at 20.0%.

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

Exports milk from Canada

Exports in kind, t

After a two-year decline, Canada's milk exports increased in 2020, reaching 65 904 t, which reflects a solid gain of 12.0% compared to the previous year. Between 2017 and 2020, exports decreased by 19.6%, equating to an annualized rate of 7.0%. The minimum value was recorded in 2019 at 58 859 t, with the largest decline also occurring in 2019 at 20.7%.

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

From 2017 to 2020, Canada's milk exports in kind were distributed across a wide range of partner countries. Algeria accounted for 16.9% of exports, the United States for 16.7%, and Egypt for 13.9%, with these three countries jointly representing 47.4% of total export flows.

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, M $ US

Following a two-year decline, Canada's milk exports increased in 2020, totaling 122.3 M $ US, which shows a moderate gain of 4.8% year-over-year. Between 2017 and 2020, exports decreased by 15%, with an annualized rate of 5.3%. The minimum value was recorded in 2019 at 116.7 M $ US, and the largest decline occurred in 2018 at 14.8%.

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

Over the period from 2017 to 2020, there was no single dominant market for Canada's milk exports in value terms. Algeria accounted for 18.2% of exports, Egypt for 15.8%, and the United States for 10.1%, with these three countries together taking only 44.1% of total export value. Many smaller partners each held modest individual shares.

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

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

Imports milk to Canada

Imports in kind, t

Canada's milk imports increased for the third consecutive year in 2020, totaling 61 325 t, which amounts to a robust uptick of 15.9% compared to the previous year. Between 2017 and 2020, imports grew by 94.7%, equating to an annualized rate of 24.9%.

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

From 2017 to 2020, the United States clearly dominated as a supplier of milk to Canada, accounting for 92.5% of total imports in kind.

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, M $ US

Canada's milk imports increased for the second consecutive year in 2020, totaling 49.3 M $ US, reflecting a rise of 10.6% from 2019. Between 2017 and 2020, imports grew by 13.4%, with an annualized rate of 4.3%. The minimum value was recorded in 2018 at 36.7 M $ US, where the largest decline of 15.6% also occurred. The largest increase was in 2019 at 21.5%.

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

Over the period from 2017 to 2020, the United States served as the main source for milk imports to Canada, consistently absorbing 93.0% of total imports in value terms.

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

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