Eastern Canada’s dairy producers have been given the green light to produce more milk.
AgCanada reports the eastern provinces of Prince Edward Island, New Brunswick, Nova Scotia, Quebec and Ontario, known as the P5, have been given a five percent quota increase starting July 1st.
A statement from Dairy Farmers of Ontario says there isn’t enough milk produced in Canada to fill the market for butter.
Chris Galen from National Milk Producers says Canada making more milk for their butter demand is all well and good, but there’s a problem. “That increase in production of milk overall is also increasing the amount of milk proteins, skim milk that needs to find a home and so they’re using this Class 7 pricing policy to find homes for that product overseas.”
Galen says it’s not about Canada producing and consuming products in a closed-loop market, it has global implications that have U.S., European Union, New Zealand, and Australian officials concerned.
The 5% jump is the largest one-time quota increase since Canada started their supply management system in 1998. Overall, the P5 has seen the quota raised 12% since then.
Source: Brownfield
