November 27, 2007

Canada's 2007 milk output to reach 8.1 million tonnes

Canada's total milk production for calendar year 2007 is seen to increase by 801 million tonnes due to an increase in Canadian dairy requirements, the US Department of Agriculture said.

Production of cheese is expected to increase to 297 thousand tonnes while a 10 percent decrease in butter production is expected from the previous year. 

Due to the need to replenish butter stocks, butter production in 2007 is projected to reach 80 thousand million tonnes.  The USDA said trade data an increase in usage of the IREP (Import for Re-Export Programme) will result in increased milk imports in 2007 compared to year 2006 levels, while butter imports will decrease due to a decrease in IREP usage for butter.  A strong Canadian dollar against the US dollar, stable production levels and an increased domestic requirement is seen to result in lower dairy exports in 2007. 

Proposed changes to Canada's cheese compositional standards were announced in 2007 that, if made into law, could have a negative on US cheese and dairy ingredients exports to Canada.

For more of the USDA report, please click here