Canada's Dairy Product Manufacturing Industry

Canada's dairy product manufacturing industry, North American Industry Classification System (NAICS) 3115, consists of establishments that are primarily engaged in manufacturing dairy products; establishments primarily engaged in manufacturing substitute products are included, however, margarine and cheese-based salad dressing manufacturers are not.

Significance

The dairy product manufacturing sector contributes significantly to the Canadian economy and contributes to the vitality of our rural communities. The sector includes processed dairy products such as functional dairy beverages and yogurts, butter, spreads, whey based protein products, condensed dairy products, ice cream, and frozen desserts. Growth of processed dairy products has been influenced by demand for convenience products such as flavoured spreads and powdered dairy by-products. Healthier dairy products remain a key trend as consumers continue to show interest in functional and fortified probiotic yogurts and beverages.

Structure

In 2012, 737 establishments were operating in Canada with the majority in Ontario (226), Quebec (150) and Alberta (123). The industry generated revenues of $13.6 billion and employed over 25,200 people in the same year. Canada is a net importer of dairy products, importing $836 million and exporting $422 million in 2014. The United States accounts for 51% of exports and the majority of imports come from the United States (57%), followed by Italy, France, and New Zealand.

Canadian dairy product manufacturing industry imports, exports and sales of goods manufactured (2012)
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The following figures are in millions of Canadian dollars.

Canadian dairy product manufacturing industry imports, exports and sales of goods manufactured (2012)
Imports 636.30
Exports 397.90
Domestic shipments 13,178.40
Canadian market (imports and domestic shipments) 13,814.70
Sales of goods manufactured (exports and domestic shipments) 13,576.30

Source: Statistics Canada

Performance

Between 2004 and 2012, sales of goods manufactured by the Canadian dairy product industry increased 24.4% from $10.9 billion to $13.6 billion. Imports of dairy products experienced an average annual growth rate of 0.8% throughout the period. Imports as a percentage of the domestic market underwent a slight decline from 5.4% in 2004 to 4.6% in 2012, while direct employment grew from 19,989 to 25,280 employees.

Canadian dairy product manufacturing industry sales of goods manufactured and employment (2004 -2012)
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Canadian dairy product manufacturing industry sales of goods manufactured and employment (2004-2012)
2004 2005 2006 2007 2008 2009 2010 2011 2012
Sales of goods manufactured (in millions of Canadian dollars) 10,909.98 11,195.34 11,296.13 12,636.88 12,582.09 12,781.56 12,961.59 13,211.56 13,576.35
Employment (number of people) 19,989 20,945 19,379 21,026 21,655 21,977 23,034 24,553 25,280

Source: Statistics Canada

Note: The manufacturing statistics cited in this profile are taken from Statistics Canada's Annual Survey of Manufactures and Logging, which lags behind the current date by at least 2 years.

Dairy product manufacturing, 2004-2013

Table showing principal statistics in the canadian dairy product manufacturing industry for 2004-2012
Principal statistics [a] 2004 2005 2006 2007 2008 2009 2010 2011 2012 2012/11 AAG [b]
2007-12
Employment total (number of employees) 19,989 20,945 19,379 21,026 21,655 21,977 23,034 24,553 25,280 3.0% 3.8%
Employment – production (number of employees) 15,331 16,256 14,921 15,942 16,215 16,278 17,295 18,479 19,035 3.0% 3.6%
Employment - administration (number of employees) 4,658 4,689 4,458 5,084 5,440 5,699 5,739 6,074 6,245 2.8% 4.2%
Total revenue (millions $) 12,356 13,128 13,234 14,107 14,012 14,293 14,486 14,701 14,601 −0.7% 0.7%
Revenue from goods manufactured (millions $) 10,910 11,195 11,296 12,637 12,582 12,782 12,962 13,212 13,576 2.8% 1.4%
Value-added, goods manufactured (millions $) 2,227 2,389 2,261 3,411 3,318 3,490 3,513 3,480 3,644 4.7% 1.3%
Value-added/worker, goods manufactured (millions $) 0.15 0.15 0.15 0.21 0.20 0.21 0.20 0.19 0.19
Value-added as % of revenue from goods manufactured 20.4% 21.3% 20.0% 27.0% 26.4% 27.3% 27.1% 26.3% 26.8%
Domestic market (millions $) 11,106 11,403 11,437 12,845 12,909 12,986 13,193 13,462 13,815 2.6% 1.5%
Domestic penetration 94.6% 94.8% 95.3% 95.1% 94.6% 95.7% 95.7% 95.4% 95.4%

Note:

  • [a] Statistics Canada, Annual survey of manufactures and logging (ASML) (note there is at least a 2 year lag in ASML figures)
  • [b] Average annual growth rate
Table showing global trade statistics in the canadian dairy product manufacturing industry for 2004-2013
Global trade statistics [a] 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2013/12 AAG [b]
2008-13
Exports (millions $) 402.4 388.1 398.7 419.4 372.3 348.0 338.3 373.9 397.9 416.6 4.7% 2.3%
Exports as % of revenue from goods manufactured 3.7% 3.5% 3.5% 3.3% 3.0% 2.7% 2.6% 2.8% 2.9%
Imports (millions $) 598.3 595.8 539.9 627.2 699.2 552.2 569.3 624.4 636.3 719.6 13.1% 0.6%
Imports as % of domestic market 5.4% 5.2% 4.7% 4.9% 5.4% 4.3% 4.3% 4.6% 4.6%
Balance of trade (millions $) −195.9 −207.7 −141.2 −207.8 −326.9 −204.2 −231.0 −250.5 −238.4 −303.0

Note:

  • [a] Industry Canada trade data online (Statistics Canada data)
  • [b] Average annual growth rate
Table showing trade statistics with the United States in the canadian dairy product manufacturing industry for 2004-2013
Trade statistics with the United States [a] 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2013/12 AAG [b]
2008-13
Exports (millions $) 227.3 215.9 188.3 187.4 142.0 149.7 153.2 153.4 196.8 214.3 8.9% 8.6%
Imports (millions $) 213.8 208.4 211.2 270.1 300.5 267.4 287.7 315.9 338.8 412.4 21.7% 6.5%
Balance of trade (millions $) 13.5 7.5 −23.0 −82.7 −158.5 −117.7 −134.5 −162.5 −142.0 −198.1 39.5% 4.6%

Note:

  • [a] Industry Canada trade data online (Statistics Canada data)
  • [b] Average annual growth rate

Contact us

For more information about Canada's food industry, read Significance of the Food and Beverage Processing Industry in Canada or contact the Sector Development and Analysis Directorate at sdad-ddas@agr.gc.ca.

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