Quarterly Canadian Dairy Update – Mar ’18
Executive Summary Canadian milk sold off farm figures provided by Statistics Canada were recently updated with values spanning through the end of 2017. Highlights from the updated report include:
- Canadian milk sold off farms has increased on a YOY basis over 43 consecutive months through the end of 2017. ’17-’18 YTD sales are up 6.8% YOY throughout the first five months of the production season, on pace to reach a record high level for the fourth consecutive year.
- Although Canada remains a net dairy importer, exports of skim milk powder/nonfat dry milk reached a record high level throughout 2017 while additional gains are expected throughout 2018 according to USDA. U.S. – Canada combined net trade of butter, cheese and nonfat dry milk has declined 35% throughout the first half of the ’17-’18 production season, driven lower by reduced U.S. export volumes of butter and cheese destined to Canada.
- Strong Canadian exports of skim milk powder/nonfat dry milk are expected to contribute to stocks being drawn down to an 11 year low throughout 2018, however 2018 Canadian ending stocks of butter and cheese are expected to reach record high levels according to USDA.