Study Highlights the Economic Impact of the Canadian Dairy Sector

Today, Dairy Farmers of Canada (DFC) released the most recent update of a regular study highlighting the important economic impact of the dairy sector in Canada. The study, conducted by EcoRessources and entitled: “Update on the Economic Impacts of the Dairy Industry in 2015”, is the fourth update tracking the economic impact of the sector, which since 2009, has been conducted every two years.

“The Canadian dairy industry is a key driver of our national economy and represents one of the largest agri-food industries in the country,” said Wally Smith, President of Dairy Farmers of Canada. “We take great pride in our industry’s economic contribution – creating jobs, increasing milk production, diversifying dairy products and stimulating local economies. All of these elements benefit Canadians and Canada.”

Key findings of the study include:

• In 2015, the Canadian dairy industry contributed $3.8B in local, provincial and federal taxes.
• The sector’s contribution to Canada’s Gross Domestic Product (GDP) has increased from $15.2B in 2009 to $19.9B in 2015.
• In 2015, the sector sustained approximately 221,000 full-time equivalent jobs – an increase of approximately 3% since 2009. The types of jobs have also changed, with the number of jobs at the farm level decreasing, and the number of jobs at the value-added processing level increasing.
• Canada’s overall milk production increased 6.71% between 2009 and 2015.

The economic activity related to milk production and processing is spread across every province. While Ontario and Quebec have the bulk of milk production, processing and population of Canada, dairy farming remains one of the top two agricultural sectors of importance in seven out of 10 provinces.

The dairy industry is active in all Canadian provinces and is a mainstay of the economy in several regions, providing local products to Canadians. The study focused on national numbers, but also analysed the economic impact in further detail in the Atlantic Provinces, Quebec, Ontario and Western Canada.