VISTA on the Agri-food Industry and the Farm Community
Changes in Canadians’ preferences for milk and dairy products VISTA on the Agri-food Industry and the Farm Community
Changes in Canadians’ preferences for milk and dairy products

Introduction

The dairy industry in Canada started in the 1500s when settlers brought dairy cattle over from Europe. It evolved in the late 1800s when Louis Pasteur invented pasteurization, the process of heating milk to kill its bacteria. This innovation made milk consumption safer. The Canadian dairy industry has since grown into a $6 billion industry, as can be seen from 2015 farm cash receipts. It is the third-largest agricultural industry in Canada and the largest in Quebec.^{Note 1} Dairy milk is processed into fresh milk (of different fat content levels) and many different dairy products, including ice cream, yogurt and cheese. This article will show how commercial sales of fluid milk and the preferences of milk and dairy products have changed over the last few decades.

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Food availability refers to the food statistics designed to provide annual measures of selected food products availability for consumption on a per capita basis. These statistics are derived using a supply and disposition framework (beginning and ending inventory, production, imports, exports, processing, losses) and population data.^{Note 2}

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The decline of commercial milk sales since 2009

As Canada’s population increases, one would also expect the commercial sales of milk to increase. However, with an aging and more ethnically diverse population, who are less likely to drink milk, milk sales have not followed the total population increase. Chart 1 shows the total commercial sales of all fat levels of milk from 1977 to 2015.

Data table for Chart 1

Data table for Chart 1
Table summary
This table displays the results of Data table for Chart 1. The information is grouped by Year (appearing as row headers), All milk , Standard milk 3.25% , Partly skimmed milk 2%, Partly skimmed milk 1%, Skim milk, Buttermilk and Chocolate and other flavoured milk, calculated using kilolitres units of measure (appearing as column headers).

Year	All milk	Standard milk 3.25%	Partly skimmed milk 2%	Partly skimmed milk 1%	Skim milk	Buttermilk	Chocolate and other flavoured milk
	kilolitres
1977	2,343,180	1,022,379	1,141,403	Note ..: not available for a specific reference period	84,921	14,547	79,930
1978	2,402,685	1,004,815	1,207,135	Note ..: not available for a specific reference period	88,219	14,962	87,554
1979	2,489,372	1,003,728	1,284,110	Note ..: not available for a specific reference period	91,989	15,090	94,455
1980	2,521,107	994,288	1,324,874	Note ..: not available for a specific reference period	91,025	14,818	96,102
1981	2,533,721	969,534	1,369,600	Note ..: not available for a specific reference period	83,680	14,238	96,669
1982	2,554,326	933,083	1,433,119	Note ..: not available for a specific reference period	85,583	13,924	88,617
1983	2,553,802	886,607	1,478,620	Note ..: not available for a specific reference period	88,031	14,369	86,175
1984	2,562,164	848,453	1,517,143	Note ..: not available for a specific reference period	95,328	13,519	87,721
1985	2,555,452	804,064	1,541,926	Note ..: not available for a specific reference period	109,222	13,486	86,754
1986	2,607,778	774,204	1,604,704	Note ..: not available for a specific reference period	123,676	13,542	91,652
1987	2,668,368	756,067	1,653,803	Note ..: not available for a specific reference period	139,059	13,875	105,564
1988	2,664,824	719,301	1,679,403	Note ..: not available for a specific reference period	145,473	13,622	107,025
1989	2,629,448	660,963	1,689,988	Note ..: not available for a specific reference period	157,855	13,613	107,029
1990	2,643,558	607,449	1,577,450	161,985	175,371	13,426	107,877
1991	2,649,943	558,995	1,564,354	238,890	178,694	13,030	95,980
1992	2,626,795	522,502	1,531,546	289,474	177,617	12,593	93,063
1993	2,578,540	492,256	1,480,648	319,063	177,526	12,026	97,021
1994	2,633,063	487,423	1,454,605	377,113	191,495	12,036	110,391
1995	2,646,555	467,047	1,415,779	419,465	213,774	12,333	118,157
1996	2,666,459	455,962	1,394,336	457,720	229,698	11,837	116,906
1997	2,665,829	449,221	1,360,127	484,241	240,626	11,360	120,254
1998	2,676,966	445,719	1,347,497	494,851	247,758	13,084	128,057
1999	2,667,219	429,496	1,325,097	503,338	254,327	13,067	141,894
2000	2,706,966	435,774	1,326,772	529,536	263,597	12,040	139,247
2001	2,704,883	440,405	1,296,712	533,865	270,706	12,048	151,147
2002	2,683,417	424,771	1,272,619	540,836	277,006	13,217	154,968
2003	2,698,258	425,547	1,276,046	552,390	270,260	13,528	160,487
2004	2,733,795	418,017	1,281,205	572,017	276,051	14,144	172,361
2005	2,707,350	406,704	1,251,785	576,368	282,227	13,619	176,647
2006	2,721,462	402,461	1,252,055	590,044	283,655	13,691	179,556
2007	2,733,811	393,016	1,249,061	598,579	288,002	14,934	190,219
2008	2,729,811	377,088	1,242,981	604,388	288,886	14,591	201,877
2009	2,741,133	375,857	1,259,482	610,745	289,562	12,579	192,908
2010	2,658,344	359,681	1,215,337	591,879	283,175	11,308	196,964
2011	2,678,259	359,057	1,225,384	596,384	281,808	11,587	204,039
2012	2,663,413	357,136	1,230,693	586,955	273,301	11,723	203,605
2013	2,649,605	360,104	1,250,968	567,384	254,167	12,967	204,015
2014	2,602,700	361,332	1,249,317	538,156	229,752	11,924	212,219
2015	2,538,016	355,307	1,238,196	503,488	200,663	11,409	228,953
.. not available for a specific reference period Note: "Canada" excludes Newfoundland and Labrador for all products. Source: Statistics Canada, Commerical sales of milk and cream, CANSIM table 003-0012.

The sales of standard milk (3.25% fat) declined from 1977 to 1995. Consequently, the rate of decline slowed down until levelling off at around 355,300 kilolitres in 2015. Sales of partly skimmed milk (2% fat) increased from 1977 until 1989, then decreased until levelling off at around 1,250,000 kilolitres from 2009 onward. The sales of partly skimmed milk (1% fat) grew from 1990 (the first year data were collected) to 2009, after which they steadily decreased to 503,000 kilolitres in 2015. Skim milk (0% fat) increased progressively from 1977 to peak at around 290,000 kilolitres in 2009. Since then, skim milk has steadily decreased to around 201,000 kilolitres in 2015. Since 2007, availability for consumption of these milk products has gradually declined to levels below the level in 1981. The total commercial sales of all fat levels of milk peaked in 2009 at 2,741,000 kilolitres, then decreased to 2,538,000 kilolitres in 2015. In general, these trends in milk sales reflected the consumers demand for lower fat milk for health reasons.

The declining of milk products available for consumption

Per capita milk of all types available for consumption^{Note 3} steadily increased from 1960 to peak at 98 litres in 1979 and 1980. Since then, it has gradually decreased to 64 litres per person per year in 2015. Year-over-year declines were more pronounced from 2009 to 2015.

Data table for Chart 2

Data table for Chart 2
Table summary
This table displays the results of Data table for Chart 2. The information is grouped by Year (appearing as row headers), All milk , Standard milk 3.25% , Partly skimmed milk 2%, Partly skimmed milk 1% and Skim milk, calculated using litres per person per year units of measure (appearing as column headers).

Year	All milk	Standard milk 3.25%	Partly skimmed milk 2%	Partly skimmed milk 1%	Skim milk
	litres per person per year
1960	76.25	72.78	Note ..: not available for a specific reference period	Note ..: not available for a specific reference period	3.47
1961	81.29	70.70	7.04	Note ..: not available for a specific reference period	3.55
1962	81.95	69.76	8.57	Note ..: not available for a specific reference period	3.62
1963	82.67	68.42	10.51	Note ..: not available for a specific reference period	3.74
1964	83.44	66.68	12.88	Note ..: not available for a specific reference period	3.88
1965	91.41	72.39	15.09	Note ..: not available for a specific reference period	3.93
1966	91.13	69.54	17.90	Note ..: not available for a specific reference period	3.69
1967	90.37	66.30	20.72	Note ..: not available for a specific reference period	3.35
1968	90.73	63.96	23.52	Note ..: not available for a specific reference period	3.25
1969	90.66	60.81	26.72	Note ..: not available for a specific reference period	3.13
1970	92.18	59.04	30.10	Note ..: not available for a specific reference period	3.04
1971	91.26	55.56	32.38	Note ..: not available for a specific reference period	3.32
1972	92.86	53.86	35.47	Note ..: not available for a specific reference period	3.53
1973	94.67	52.18	38.61	Note ..: not available for a specific reference period	3.88
1974	95.11	49.97	41.28	Note ..: not available for a specific reference period	3.86
1975	92.35	46.01	42.72	Note ..: not available for a specific reference period	3.62
1976	94.02	44.56	45.89	Note ..: not available for a specific reference period	3.57
1977	94.78	43.09	48.11	Note ..: not available for a specific reference period	3.58
1978	95.98	41.93	50.37	Note ..: not available for a specific reference period	3.68
1979	98.33	41.47	53.06	Note ..: not available for a specific reference period	3.80
1980	98.31	40.56	54.04	Note ..: not available for a specific reference period	3.71
1981	97.61	39.06	55.18	Note ..: not available for a specific reference period	3.37
1982	97.62	37.15	57.06	Note ..: not available for a specific reference period	3.41
1983	96.71	34.95	58.29	Note ..: not available for a specific reference period	3.47
1984	96.10	33.13	59.25	Note ..: not available for a specific reference period	3.72
1985	95.01	31.11	59.67	Note ..: not available for a specific reference period	4.23
1986	95.88	29.66	61.48	Note ..: not available for a specific reference period	4.74
1987	96.38	28.59	62.53	Note ..: not available for a specific reference period	5.26
1988	94.96	26.85	62.68	Note ..: not available for a specific reference period	5.43
1989	91.98	24.23	61.96	Note ..: not available for a specific reference period	5.79
1990	91.09	21.94	56.97	5.85	6.33
1991	90.63	19.94	55.80	8.52	6.37
1992	88.86	18.42	53.98	10.20	6.26
1993	86.09	17.16	51.62	11.12	6.19
1994	86.57	16.81	50.16	13.00	6.60
1995	85.88	15.94	48.32	14.32	7.30
1996	85.71	15.40	47.09	15.46	7.76
1997	84.74	15.02	45.48	16.19	8.05
1998	84.10	14.78	44.69	16.41	8.22
1999	82.65	14.13	43.59	16.56	8.37
2000	83.29	14.20	43.24	17.26	8.59
2001	81.77	14.03	41.80	17.21	8.73
2002	80.21	13.55	40.58	17.25	8.83
2003	79.78	13.45	40.33	17.46	8.54
2004	79.76	13.09	40.12	17.91	8.64
2005	78.06	12.61	38.82	17.88	8.75
2006	77.63	12.36	38.44	18.12	8.71
2007	76.89	11.95	37.98	18.20	8.76
2008	75.60	11.34	37.39	18.18	8.69
2009	74.80	11.18	36.85	18.16	8.61
2010	73.07	10.57	36.38	17.80	8.32
2011	71.72	10.46	35.68	17.37	8.21
2012	70.44	10.28	35.41	16.89	7.86
2013	69.19	10.24	35.58	16.14	7.23
2014	66.98	10.16	35.15	15.12	6.55
2015	64.09	10.08	34.44	13.99	5.58
.. not available for a specific reference period Note: Does not adjust for losses (e.g. waste or spoilage) in stores, households, private institutions or restaurants, or losses during preparation. Source: Statistics Canada, Food available in Canada, annual, CANSIM table 002-0011.

Chart 2 shows changing consumer preferences from higher-fat to lower-fat milk. This trend is most noticeable between standard 3.25% milk and partly skimmed 2% milk. Per capita, partly skimmed 2% milk became Canadian consumers’ preferred milk product in 1976, surpassing standard milk available for consumption. Partly skimmed 2% milk peaked at 62.7 litres per person per year in 1988. Partly skimmed 2% milk available for consumption declined since 1989 to reach 34.4 litres per person in 2015.

Standard 3.25% milk experienced a sharp decline from 1960 to the late 1980s, and was replaced by partially skimmed 2% milk. Since the 1990s, standard 3.25% milk available for consumption has levelled off. In 1960, Canadians had standard 3.25% milk available for consumption at an average of 72.8 litres per person. Fifty-five years later, this average was down to 10.1 litres per person per year.

Partly skimmed 1% milk available for consumption increased sharply in the 1990s to reach 17.3 litres per person in 2000. From 2000 to 2009, partly skimmed 1% milk levelled off at between 17 and 18 litres per person per year. Since 2009, partly skimmed 1% milk available for consumption has decreased 23%, reaching 14 litres per person per year in 2015.

Skim milk available for consumption remained stable between 3 and 4 litres per person per year from 1960 to the mid-1980s. It then steadily increased to peak at 8.8 litres per person in 2002. Skim milk available for consumption has since declined to 5.6 litres per person per year (in 2015), a 37% drop. The substitution between higher fat to lower fat milk might be explained by consumers demand for healthier products. Partly skimmed 1% milk and skim milk demand never took off like partially skimmed 2% milk did during 1960 to 1990. Skim and 1% partly skimmed milk might not have struck the palate of Canadian consumers as 2% milk did.

The overall decline of all types of milk since 2009 may be the result of more dairy milk substitutes available to consumers, such as soy milk and almond milk. Some people are also choosing frozen desserts with alternative bases, such as coconut oil, instead of ice cream. This rise in dairy alternatives may also reflect demand from people who are lactose intolerant or who have specific dietary preferences. While Canadian data are available only for traditional milk and not milk substitutes, there is data on both traditional milk and almond milk growth in the United States.

Chart 3, based on the Nielsen Company and Mintel data, shows sales of traditional and almond milk in the United States from 2011 to 2015. From 2011 to 2012, almond milk sales grew 59.8%, while traditional milk sales fell 0.7%. This trend has continued: almond milk sales in 2015 were 7.5% higher than in 2014, which, over five years, led to a total increase in sales of over 250% and over $894 million in total sales. Traditional milk sales in the United States saw a slight increase of 3.1% from 2013 to 2014, but, by 2015, sales had declined another 7%.

Data table for Chart 3

Data table for Chart 3
Table summary
This table displays the results of Data table for Chart 3. The information is grouped by Year (appearing as row headers), Traditional milk and Almond milk, calculated using billions of dollars units of measure (appearing as column headers).

Year	Traditional milk	Almond milk
	billions of dollars
2011	19,018	248
2012	18,885	396
2013	18,564	594
2014	19,140	830
2015	17,800	895
Source: Data derived using The Nielsen Company and Mintel data.

Dairy products available for consumption

Ice cream available for consumption dropped over 65% from 12.7 litres per person in 1979 to 4.4 litres per person in 2015 (Chart 4).

Data table for Chart 4

Data table for Chart 4
Table summary
This table displays the results of Data table for Chart 4. The information is grouped by Year (appearing as row headers), Yogurt, Ice cream, Sherbet and Ice milk, calculated using litres per person per year units of measure (appearing as column headers).

Year	Yogurt	Ice cream	Sherbet	Ice milk
	litres per person per year
1960	0.04	10.47	Note ..: not available for a specific reference period	Note ..: not available for a specific reference period
1961	0.04	10.74	Note ..: not available for a specific reference period	Note ..: not available for a specific reference period
1962	0.04	10.78	0.12	0.38
1963	0.08	11.22	0.13	0.38
1964	0.08	11.64	0.14	0.54
1965	0.09	11.93	0.16	0.68
1966	0.10	12.15	0.17	0.73
1967	0.14	12.48	0.18	0.89
1968	0.22	12.25	0.18	0.90
1969	0.28	12.59	0.17	1.00
1970	0.38	12.79	0.18	1.02
1971	0.47	12.41	0.16	1.17
1972	0.55	12.46	0.17	1.17
1973	0.61	12.23	0.18	1.11
1974	0.64	12.18	0.17	0.96
1975	0.70	12.41	0.14	1.01
1976	0.88	11.92	0.15	1.14
1977	1.16	12.27	0.13	1.21
1978	1.65	12.00	0.15	1.20
1979	1.61	12.71	0.15	0.95
1980	1.61	12.72	0.13	0.96
1981	1.64	12.57	0.12	1.02
1982	1.70	12.08	0.10	1.01
1983	1.86	12.28	0.13	1.00
1984	2.08	11.76	0.11	1.25
1985	2.37	12.00	0.10	1.21
1986	2.69	12.19	0.10	1.26
1987	3.04	11.76	0.13	1.11
1988	3.21	11.73	0.11	1.28
1989	3.26	11.36	0.12	1.30
1990	3.09	11.26	0.12	1.17
1991	2.99	10.65	0.12	1.24
1992	2.91	10.02	0.12	1.06
1993	3.04	10.90	0.14	1.36
1994	3.09	11.74	0.17	1.47
1995	3.05	11.39	0.19	1.77
1996	3.17	10.87	0.17	1.96
1997	3.19	10.35	0.22	1.88
1998	3.46	10.18	0.18	1.97
1999	4.05	10.02	0.21	1.86
2000	4.59	8.62	0.39	2.09
2001	4.88	9.22	0.35	2.23
2002	5.39	9.49	0.21	2.17
2003	5.86	8.77	0.19	2.06
2004	6.31	8.41	0.29	1.96
2005	6.77	8.85	0.19	1.84
2006	7.21	9.21	0.17	1.69
2007	7.40	8.02	0.17	1.65
2008	7.92	6.89	0.17	1.72
2009	8.04	5.53	0.14	1.64
2010	8.56	5.54	0.18	2.24
2011	8.91	5.44	0.16	2.86
2012	9.99	5.53	0.14	2.80
2013	9.51	5.11	0.12	2.78
2014	9.62	5.48	Note ..: not available for a specific reference period	2.69
2015	10.85	4.43	Note ..: not available for a specific reference period	2.99
.. not available for a specific reference period Note: Does not adjust for losses (e.g. waste or spoilage) in stores, households, private institutions or restaurants, or losses during preparation. Source: Statistics Canada, Food available in Canada, annual, CANSIM table 002-0011.

During the same period, yogurt available for consumption increased from 1.6 litres per person to 10.9 litres per person. The decrease in ice cream may be a result of a more health-conscious population or of the replacement of ice cream with “frozen desserts” many made from frozen yogurt. Some of the decrease in ice cream may also reflect the increase in ice milk available for consumption. However, Canadians had definitely switched to healthier lower fat products.

Cheddar cheese availability has increased 149% from 1.3 kilograms of cheese per person in 1960 to 3.2 kilograms in 2015 (Chart 5). Canadian consumers have also expanded their palate for more refined cheeses. Variety cheeses have increased steadily since 1960 from 0.6 kilograms per person to level off from 6 to 7.1 kilograms per person between 1997 and 2015.

Processed cheese has declined from a high of 3.1 kilograms per person in 1990 to a low of 1.57 kilograms per person in 2015. This may also reflect a more health-conscious population or an aversion to processed foods. Cottage cheese available for consumption has remained relatively low, ranging from 0.6 to 1.3 kilograms per person per year during the 1960-to-2015 period.

Data table for Chart 5

Data table for Chart 5
Table summary
This table displays the results of Data table for Chart 5. The information is grouped by Year (appearing as row headers), Cheddar cheese, Processed cheese, Variety cheese and Cottage cheese, calculated using kilograms per person per year units of measure (appearing as column headers).

Year	Cheddar cheese	Processed cheese	Variety cheese	Cottage cheese
	kilograms per person per year
1960	1.28	1.40	0.58	0.57
1961	1.31	1.43	0.65	0.60
1962	1.49	1.49	0.67	0.62
1963	1.47	1.55	0.74	0.66
1964	1.54	1.62	0.75	0.69
1965	1.55	1.73	0.84	0.71
1966	1.33	1.91	0.93	0.72
1967	1.52	1.88	1.05	0.73
1968	1.51	1.97	1.21	0.75
1969	1.63	2.09	1.39	0.83
1970	1.88	2.04	1.48	0.92
1971	1.83	2.11	1.67	0.97
1972	2.08	2.32	1.36	1.01
1973	2.26	2.46	1.51	1.08
1974	2.07	2.55	2.24	1.02
1975	1.92	2.51	2.33	1.00
1976	1.59	2.64	2.64	1.05
1977	1.44	2.70	2.78	1.09
1978	1.46	2.92	3.01	1.10
1979	1.79	2.75	3.03	1.11
1980	2.08	2.87	2.89	1.23
1981	2.45	2.91	3.03	1.26
1982	2.05	2.96	3.44	1.19
1983	2.18	2.98	3.37	1.20
1984	2.12	2.80	3.32	1.20
1985	2.61	2.73	3.83	1.32
1986	2.61	2.61	4.37	1.25
1987	2.91	2.73	4.65	1.18
1988	3.03	2.98	4.77	1.16
1989	3.08	2.94	4.82	1.11
1990	3.05	3.05	4.88	1.12
1991	3.12	2.77	5.30	1.03
1992	3.08	2.79	5.40	0.92
1993	3.02	2.71	5.45	0.88
1994	3.19	2.77	5.60	0.87
1995	3.24	2.74	5.63	0.83
1996	3.07	2.58	5.66	0.76
1997	3.18	2.44	6.53	0.72
1998	3.16	2.25	6.34	0.71
1999	3.28	2.39	6.22	0.71
2000	3.17	2.35	6.56	0.79
2001	3.13	2.47	6.28	0.78
2002	3.10	2.25	6.45	0.79
2003	3.13	2.22	6.40	0.78
2004	3.09	2.35	6.72	0.82
2005	3.26	2.25	6.57	0.85
2006	3.40	2.30	6.57	0.85
2007	3.04	2.24	7.05	0.91
2008	3.22	2.13	7.07	0.90
2009	3.31	2.10	7.02	0.78
2010	3.43	1.86	6.93	0.77
2011	3.35	2.06	6.87	0.75
2012	3.24	1.99	6.87	0.75
2013	3.31	1.92	7.20	0.72
2014	3.25	1.78	7.17	0.68
2015	3.19	1.57	7.13	0.60
Note: Does not adjust for losses (e.g. waste or spoilage) in stores, households, private institutions or restaurants, or losses during preparation. Source: Statistics Canada, Food available in Canada, annual, CANSIM table 002-0011.

Conclusion

The last 35 years have seen lower-fat milks and dairy products substituted for higher-fat milks and dairy products, which may indicate that consumers are choosing perceived healthier options. Total commercial sales of fluid milk rose until 2009, after which they decreased. Alternatively, milk substitutes have risen consistently over the past five years. This is echoed by the decrease in processed cheese available. In general, Canadians’ dairy choices are trending away from traditional milk and processed or high-fat products towards lower fat dairy sources and dairy alternatives.

References

Barratt, R. F. (2006, February 7). Dairy Industry. Retrieved August 16, 2016, from the Canadian Encyclopedia: http://www.thecanadianencyclopedia.ca/en/article/dairy-industry/.

Canadian Dairy Commission. (2016, May 30). Harmonized Milk Classification System. Retrieved August 15, 2016, from Canadian Dairy Commission: http://www.cdc-ccl.gc.ca/CDC/index-eng.php?id=3811.

Canadian Dairy Commission. (2016, May 30). Supply Management. Retrieved July 11, 2016, from Canadian Dairy Commission: http://www.cdc-ccl.gc.ca/CDC/index-eng.php?id=3806.

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From farm to table

Ideally, a female adult cow produces milk for 10 months following the birth of her calf. She is then dry for two months to prepare for the birth of her next calf. Some of the milk produced is used to feed the calf, while a majority is placed in a refrigerated tank for up to 48 hours. Every day or two, the milk is collected by a tanker driver who checks the quality of the milk, grades it and brings it to a processing plant. A sample from the milk tanker is tested for antibiotics and temperature and a sample from the farm vat is tested for milkfat, protein, bulk milk cell count and bacteria count. The whole milk then undergoes pasteurization, homogenization, separation and further processing. Pasteurization is the process of heating milk to kill bacteria. Homogenization disperses the fat in the milk so it does not float to the top of the container. Separation is the spinning of the milk to remove the cream, which is then remixed to bring the milk to the desired level of milkfat. Other processes include culturing the milk for other products, microfiltration and ultra-high temperature treatment, which increases storage life. The milk is then packaged and delivered to stores to be sold.

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Supply management

In 1966 the Canadian Dairy Commission (CDC) was created under recommendation from the Canadian Dairy Advisory Committee. This led to the creation of the National Milk Marketing Plan in 1970. The plan started with Ontario and Quebec and included all provinces by 1974, except Newfoundland, which joined in 2001. Supply management has three main functions: price setting, protection from foreign competition and control of supply. The CDC sets prices based on demand, market conditions and cost. Milk pricing also depends on final use, with a classification based on perishability. The most perishable products, such as fluid milk, sell for the highest prices. Prices then decrease as shelf life increases, from yogurt, to cheese, to butter, and finally to powders, concentrated products, and dairy products used for further processing. Foreign competition is limited by high over-quota tariffs on dairy products. Control of supply is enforced by allowing farmers to produce only their allocated quota of milk. Quotas were originally allocated based on supply in 1971 and are transferable between producers. The Canadian Milk Supply Management Committee oversees the national production level and the supply of raw milk for fluid purposes to the provinces.

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