How Canadian Dairy Farms Can Adjust to New Dairy Demand

Emily Folk

Published

4 weeks ago

6 minute read

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.

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.

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.

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.

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.

Emily Folk

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Canadian Agriculture More Energy Intensive, More Efficient

Published on October 16, 2020

Emily Folk

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.

How Canadian Dairy Farms Can Adjust to New Dairy Demand

Agriculture

COVID-19 takes down Agri-Trade 2020

Published on September 24, 2020

Westerner Park

Agri-Trade Equipment Expo cancelled for November 11^th – 13^th, 2020

Agri-Trade Equipment Expo announced today that they made the difficult decision to cancel their 2020 show that was to be held November 11 – 13 at Westerner Park. Although Alberta’s Relaunch Strategy guidelines do allow for trade shows to take place, considering all factors, Agri-Trade felt they had no choice but to cancel the show.

Agri-Trade worked closely with all stakeholders to come to this decision. They all worked together to do what they felt was best for their exhibitors during this pandemic. Corporate policies have introduced restricted travel that would impede both exhibitor participation and attendance for the event.

“With so many concerns around the current situation with COVID-19, many companies have implemented restricted travel policies. With a significant number of companies having to cancel, we felt that the show would not be representative of the Agri-Trade brand. This was not a decision that was made lightly, we left no stone unturned as we were making this decision.” said David Fiddler, Agri-Trade Expo Show Manager.

“We know that in a normal year, millions of dollars of business takes place and almost $300 million in economic impact is created as a direct result of the show. We recognize that many people and businesses will be impacted by this decision. We appreciate the Government of Alberta, and Alberta Health Services for providing an environment that would allow tradeshows such as Agri-Trade to be a part of Alberta’s recovery plan.” said Rick More, Chief Executive Officer, Red Deer and District Chamber of Commerce.

“After hundreds of event cancellations over the past six months, we wanted to try everything we could to safely and successfully host Agri-Trade, once we were given the green light for tradeshows by Alberta Health Services. But as we monitor the environment and the ongoing challenges and feedback from exhibitors and stakeholders, we feel that the risks outweigh the reward in pushing forward this year.” Mike Olesen, Chief Executive Officer, Westerner Park.
The Agriculture community is resilient and has already persevered through a number of challenges this 2020 plant and harvest season. Agri-Trade looks forward to once again being the place to do business in Agriculture in western Canada in November of 2021.

Since 1984 Agri-Trade has been a joint venture of the Red Deer and District Chamber of Commerce and Westerner Park, attracting farmers and ranchers to view the newest equipment, technologies and the latest information to boost productivity and profit their operations. Agri-Trade is one of Canada’s premier indoor/outdoor agricultural equipment expositions and is considered to be one of the best Farm Equipment Shows to do business in North America.
If you are looking or more information on Agri-Trade Equipment Expo please be sure to follow them on social media or stay up to date at www.agri-trade.com

For media inquiries contact: David Fiddler, Show Manager 403-304-5719 or [email protected].