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Agriculture

How Canadian Dairy Farms Can Adjust to New Dairy Demand

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How Canadian Dairy Farms Can Adjust to New Dairy Demand

Many changes occurred around the world as a result of the coronavirus pandemic. In Canada, while schools and businesses closed, consumers flocked to the supermarkets to buy essentials.

Perishable goods flew off the shelves, resulting in limits being placed on items like dairy and poultry. The standard distribution system schedule put in place for dairy products could not keep up with buyers’ increased shopping.

While retail demand from grocers skyrocketed, orders from the foodservice industry plummeted. This has resulted in unforeseen fluctuations in the dairy market.

Hotels, restaurants, schools and eateries are closed or operating at limited capacity. As a result, there is now an enormous surplus of milk that has nowhere to go. Farmers are not equipped with storage spaces to accommodate the excess supply. Unlike agriculture products like potatoes, milk has to be sold immediately or risk spoilage.

Cows will continue producing milk, regardless of fluctuations in the market. While farmers have the option to reduce the size of their herd or change diet or nutrition, these things could prove detrimental when the market stabilizes.

The Supply Management System

A supply management system controls production quotas and imports for Canadian dairy, chicken, turkey and eggs. It was established in the1970s to coordinate production and demand while simultaneously controlling imports. By operating under this method, prices are stabilized for both producers and consumers.

A national agency represents each industry, and they are in charge of setting production levels that match provincial demand. Farmers in each province are allocated production quotas that are meant to prevent surpluses or shortages.

The original quotas were based on consumer needs pre-pandemic. As a result of these unforeseen events, farmers must now adjust to the new Canadian dairy demand. Here are four main ways farmers can adapt to the changing times.

  1. Dump the Milk

Producers say that discarding raw milk is inevitable at this stage. Farmers are reporting that they have been asked to take turns dumping milk. Although they’re paid for it, the waste could amount to as much as 5 million litres every week.

This disposal method is unsustainable and should only be utilized while the market is above capacity. Cows must continue to be milked to keep them comfortable and healthy, and production must continue to ensure product availability in retail stores.

  1. Donate to Food Banks

Rather than dumping milk, some farmers have begun donating to food banks to support Canadians in need. While this is a positive form of dispersing the milk surplus, it has the potential to overwhelm food banks that may not have the storage capacity to support this influx.

Additionally, the raw milk provided from farmers must be processed, which complicates the standard donation process.

  1. Improve Operations

Dairy farmers should focus on improving operations to become more efficient and cost-effective. Many producers have begun investing in updated equipment and robotics to save time and money.  Competition is set to increase as a result of import growth projected for the next decade. To maintain a market edge, operations should be improved and simplified wherever possible.

  1. Expand or Retire

In 2019, the Canadian federal government announced an aid package valued at $1.75 billion to compensate supply-managed dairy producers over an eight-year period. The Dairy Direct Payment Program is one part of this aid package and provides $345 million payments as compensation during 2019 and 2020.

The aid package was proposed as a result of import shifts. The Canadian government has opened part of its domestic market to foreign producers as part of several free-trade negotiations. To adapt to increased competition from foreign products, Canadian producers should plan to expand their operations or retire. Larger farms will be able to sustain demand while simultaneously upgrading their methods to be constantly improving.

Smaller producers may not be able to afford the necessary production updates to keep up with competitors.

Future Demand

These are unprecedented circumstances. As schools, businesses and restaurants reopen, dairy demand will increase. With indoor capacity requirements and shifts in consumer trends, consumption levels will undoubtedly continue to fluctuate.

While farmers should take steps to dispose of surplus responsibly, they should not halt production or decrease their operation size.

Read more from Emily Folk

I’m Emily Folk, and I grew up in a small town in Pennsylvania. Growing up I had a love of animals, and after countless marathons of watching Animal Planet documentaries, I developed a passion for ecology and conservation.  You can read more of my work by clicking this link: Conservation Folks.

Canadian Federal Government Taking Measures to Reduce Impact of COVID-19 on Agriculture

I’m Emily Folk, and I grew up in a small town in Pennsylvania. Growing up I had a love of animals, and after countless marathons of watching Animal Planet documentaries, I developed a passion for ecology and conservation.

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Agriculture

Canadian Agriculture More Energy Intensive, More Efficient

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Canadian Agriculture More Energy Intensive, More Efficient

It’s no secret that agriculture has contributed to climate change through various means. For example, you may know that livestock generates greenhouse gas emissions due to how farms process it. That said, it’s now clear that farmers have found sustainable ways to offset those contributions. In Canada, it’s all about energy use.

Here’s how Canadian farmers have become more efficient as they raise crops and livestock, setting a standard the world should follow.

Energy Demand and Consumption Have Fluctuated

The demand for energy has increased across the agricultural sector as a whole. However, it’s key to note that farmers have begun to use less energy despite that fact. That points to more efficient practices. The farmers who complete their work productively save time, money and energy. As a result, Canadian workers have reduced their energy consumption per dollar by 17%. That’s thanks to sustainability.

The most common energy sources include fuel, gas and electricity. It’s how farmers use those resources that counts. Combined with technology choices and new practices, it’s clear that efficiency is more achievable than ever.

What Contributes to This Phenomenon?

It’s crucial for people in agriculture to explore eco-friendly alternatives. The grasslands that many western Canadian farmers cultivate contains excess carbon, so you can imagine what the country as a whole holds underneath its surface. Farmers have now adopted new methods to adjust how they harvest their crops. These systems are better for production, as well as soil and seed health overall.

The agriculture industry has gone through many changes, too. There are fewer farms — but those that still operate have employed agricultural technology to be as efficient as possible. These tools include different equipment that cuts down on time to increase proficiency. Plus, it’s now more common to use solar power as an alternative to traditional energy solutions.

Why Accuracy and Precision Matters

It’s a lot easier to be energy efficient when you don’t waste your resources. The means farmers practiced before they used specific innovations often created a time deficit. If you have a smaller machine, you likely need to do twice as much work. However, when you have access to equipment that fits your field, you don’t have to be as wasteful. The accuracy and precision created by technology make this a reality.

Soil Conservation Is Led by Ranchers

Many farmers have looked to ranchers for help. It’s a native part of ranching to preserve topsoil and other elements that are inherently sustainable. As a result, it seems like ranchers have been leading the charge against climate change for decades. The tactics they use to avoid tilling soil, for example, help preserve the amount of carbon that lies underneath the Earth’s surface.

The “no-till” practice is efficient in its own right. Rather than till your soil to plant a new crop, you simply leave behind what’s already there. This method is much better for soil nutrition, and it can keep carbon exposure at bay. As a result, you have much fewer carbon emissions. In general, the idea of soil conservation isn’t a new one, but old tricks can still work alongside modern technology.

The Future of Agriculture in Canada Looks Bright

If farmers continue on this path, it’ll be clear that climate solutions are at the forefront of their minds. These efforts create more benefits for them as they save time and money. Plus, there’s always the responsibility of maintaining the planet’s health. After all, without a strong ecosystem, agriculture would suffer. Through means that are more accurate and conservative, Canadian farmers have been able to become more efficient. Click here read more stories by Emily Folk. 

I’m Emily Folk, and I grew up in a small town in Pennsylvania. Growing up I had a love of animals, and after countless marathons of watching Animal Planet documentaries, I developed a passion for ecology and conservation.

 

 

How Canadian Dairy Farms Can Adjust to New Dairy Demand

 

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Agriculture

Cranberries: the bitter berry that offers a sweet taste of success

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Cranberries: the bitter berry that offers a sweet taste of success

Cranberries have been a staple at family gatherings ever since Indigenous people introduced the bitter berry to European colonists in the 15th century. Now they warm the hearts of millions of Canadians, especially during Thanksgiving and Christmas.

Quebec’s cool climate and short growing season allow organic cranberries to thrive in the region.

Cranberries are traditionally sweetened and cooked or dried to reduce some of their tartness so they won’t leave a bitter taste in your mouth. For many Quebec producers, the bitter berry offers a sweet taste of success.

North American cranberry harvesting began in the early 18th century and has developed over the years to the point where Quebec cultivated acreage now includes more than 10,145 acres, of which 3,944 acres are organic. With one-third of Quebec’s production being organic, the province is now the global leader in organic cranberry production. The province scores second for non-organic production after Wisconsin, United States.

The cranberry industry has faced several challenges in the last decade. The most significant challenge has been oversupply leading to price pressures for growers. Despite profitability challenges, Quebec cultivated acres climbed 79 per cent between 2009 and 2019, reaching 65 per cent of the total Canadian production. In 2019, British Columbia accounted for 29 per cent of the Canadian market and Ontario and the Atlantic provinces round out the cultivated acres in Canada.

 

Cranberry cultivated acres in Quebec and British Columbia

Source: Statistics Canada

The productive bogs in B.C. are challenged by the mild winters, which makes weed control a constant battle. However, when all conditions are favourable, B.C. produces a high-quality berry.

Cranberries can be eaten in many forms: fresh, dry, in sauce, jam, juice or in capsules. The demand for organic dried cranberries is strong. A consensus among producers is the growth prospects are good and acres are expected to increase year over year, but at a slower pace than in the last decade.

Vincent Godin, cranberry producer in Quebec, co-owner of Emblem Cranberry and president of the Quebec Cranberry Growers Association, said he expects the 2020 crop to be a bit lower than in the past two years in terms of volume, but it’s normal as cranberry plants produce more berries in the second year of a two-year production cycle.

The stock is low too in the U.S. and in Canada so it should be good on the price producers will get this year,” he said. “With the climate change in the U.S., Quebec becomes the ideal region for the production of cranberries. The future is bright for our sector here.

To produce cranberries, it takes sand, water, a lot of patience, deep pockets and a strong business plan,” said Pierre-Étienne Parent, Farm Credit Canada (FCC) senior relationship manager who specializes in cranberry operations financing. “It may take five years for a new cranberry field to be productive. The key to success resides in the soil preparation and smart management of the critical harvest period. This is a large-scale and unique production that we should be very proud in Canada.

In France, doctors have started prescribing cranberry capsules combined with reduced doses of antibiotics to fight various infections, said Godin. Who knows, cranberries may soon be part of the Canadian medical repertoire and not just Thanksgiving and Christmas meals.

Why eat cranberries?

  • They are an excellent source of vitamin C and support good bone health. In fact, a daily consumption of 115 ml of fresh cranberries satisfies the daily need of vitamin C for an adult.
  • This fruit is entirely void of sodium and contains very little sugar or protein.
  • The anti-adhesive properties of cranberries have positive effects on urinary tract, ulcers, gums and dental plaque.
  • They have amazing infection-fighting properties, especially for fighting urinary tract infections in women.
  • A regular intake of cranberry products may reduce the risk of recurring infections by up to 40 per cent and, in turn, reduce the need for antibiotic treatment.

This story is reproduced with permission from FCC.

About FCC

FCC is Canada’s leading agriculture and food lender, with a healthy loan portfolio of more than $38 billion. Our employees are dedicated to the future of Canadian agriculture and food. We provide flexible, competitively priced financing, management software, information and knowledge specifically designed for the agriculture and food industries. As a self-sustaining Crown corporation, we provide an appropriate return to our shareholder, and reinvest our profits back into the industries and communities we serve. For more information, visit fcc.ca.

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