Important New Dairy Industry Stats

The following article from the July Issue of the Milk Producer, is full of information that everyone who supports supply management need to have in their hands.  Certainly supply management's detractors would like everyone to ignore the facts. The figures provided below are important to farmers, governments and the public.  Use them well and spread them around.-CG

Dairy Industry Success Should Make Us Proud

DFO VICE-CHAIR’S MESSAGE By Ron Versteeg

Some people have criticized supply management as being a self-serving system that dairy farmers enjoy at the expense of others.

Nothing could be further from the truth. Canadian dairy farms produce nearly eight billion litres of milk a year, making the dairy industry Canada’s second largest agricultural sector. Our industry’s contribution to Canada’s gross domestic product has risen to $16.2 billion in 2011, up from $15.2 billion in 2009, according to ÉcoRessources Consultants, which provides economic analysis. It completed a study for Dairy Farmers of Canada on the economic impact of the Canadian dairy industry in April 2011, later updated in February 2013. The study showed the dairy industry contributes 218,330 jobs, up from 215,104 over the same time period. It is important to note this increase occurred during a difficult period in Ontario’s economy.

Our sector also pays more than $3 billion in taxes to all three government levels. This helps support several services, such as pensions, healthcare, road repair and other infrastructure projects.

All these benefits require the Canadian consumer to contribute little to maintaining our industry. Canadian consumers spend only 11.8 per cent of their disposable income on food, of which 1.07 per cent is our industry’s share of the grocery basket. Canadian per capita consumption of milk and milk products is about double the global average. By producing what the market requires, we avoid wasteful and costly surpluses. Dairy industry stakeholders enjoy reasonable costs, predictable revenues and a stable business environment. This lets producers earn a fair margin, reinvest in their farm businesses and make efficiency gains.

Our system has evolved considerably in the last four decades, yet it remains true to its guiding principles. No one has yet identified an alternative system that balances farmer, processor, government and consumer interests as well as supply management. That’s what the public interest is all about. Our long-term track record of shared success should make us all proud.