Canada: Dairy and Products Annual

FAS/Canada projects modest growth for milk and cheese production in 2023, as consumption remains stable, and the market is partially supplied by rising import volumes following implementation of Canada’s various trade agreements. Butter production is forecast to grow in 2023, as stocks remain low, depleted by sustained strong consumption. FAS/Canada forecasts skim milk powder exports stable into 2023, within the export limits set by USMCA provisions, as the industry reorients toward producing milk protein isolates. Imports of cheese and butter continue to rise, in part, due to additional duty-free market access under recently concluded trade agreements, including the USMCA.