Canada’s dairy producers in the nation’s eastern provinces will receive a five percent quota increase July first. Five provinces in eastern Canada have approved the increase. The move follows a series of smaller increases that began last year. Dairy Farmers of Ontario says the increase is needed because there still isn’t enough milk produced to fill the market with butter. Online publication AgCanada reports that as butter demand has increased, there’s been an increasing amount of skim milk left after the butterfat has been removed to make butter and other products. Canada is mulling a nation-wide milk class that lowers the price of milk to make milk protein isolates to compete with U.S. products. However, that plan is being scrutinized by the United States. Canada’s supply management system for dairy is harming U.S. producers, as U.S. Agriculture Secretary Sonny Perdue recently stated “the supply has to be managed,” adding that Canada has “created a glut on the market.”
From the National Association of Farm Broadcasting News Service.