Supply management and the dairy industry

Information on Supply Management and the Dairy Industry

Supply management in the dairy industry

In a supply management system, demand is forecast by means of calculations, and production signals are sent out to producers based on the demand forecasts that are obtained this way.

Canadian Milk Supply Management Committee

The Canadian Dairy Commission chairs and supports the Canadian Milk Supply Management Committee and its Secretariat. 

Milk pooling agreements

For dairy producers, pooling agreements are a good tool to manage the financial risks associated with the evolution of the domestic market. 

Harmonized milk classification system

In Canada, milk is sold to processors according to a harmonized milk classification system.

National milk production target

The Total Quota is the national milk production target for Canada. 

Support Prices

The Canadian Dairy Commission (CDC) annually reviews and establishes support prices for butter and skim milk powder. 

How is the price of milk set in Canada?

The price dairy farmers receive for the milk they produce is set in the 10 Canadian provinces.  This price varies and depends on how the milk will be used.