Quarterly Canadian Milk Production Update – Jun ’20
Executive Summary Canadian milk production figures provided by Statistics Canada were recently updated with values spanning through the end of the first three quarters of the ’19-’20 production season. Highlights from the updated report include:
- Canadian milk sold off farms declined on a YOY basis for the first time in the past nine months during Apr ’20, finishing down 3.1%. ’19-’20 YTD Canadian milk sold off farms remains up 1.0% on a YOY basis throughout the first three quarters of the production season and is on pace to reach a record high annual level.
- The Canadian milk cow herd has plateaued over the past several years following significant declines experienced since the beginning of the Canadian dairy supply management system. The Canadian milk cow herd rebounded to a 12 year high seasonal level as of Jan 1st, 2020, however, increasing 0.3% from the previous year.
- The USDA expects Canadian net exports of skim milk powder/nonfat dry milk will decline to a four year low level throughout 2020, added by the eliminating of the Class 7 milk class as part of the United States-Mexico-Canada Agreement (USMCA). USMCA will enter into force July 1st, 2020.