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Milk Allocation Policy

Last Updated: May 1, 2017

The Milk Allocation Policy is a compilation of DFO policies that pertain to the marketing of milk in Ontario, e.g. Holiday Marketing Policy, Organic Milk Marketing and Plant Supply Quota.

Dairy Farmers of Ontario (DFO) is responsible for the marketing of raw milk from the farm gate to the processing plant. Milk utilized by plants to manufacture products in Classes 1 or 2 (refer to the Milk Classification Table) is supplied on-demand for the majority of their products with one exception. Effective November 1, 2011, the manufacturers of yogurt, beverage yogurt and yogurt shakes (excluding frozen yogurt products), were allotted a "Base Volume" which represents the volume of whole milk utilized in the manufacture of their yogurt products during the base setting period. Processors of yogurt products with a Base Volume are now entitled to receive their Base Volume as well as an annual growth allowance. On average, 60 per cent of the milk produced each day is marketed on-demand.

The balance of the milk supply is allocated to industrial milk plants in accordance with the Plant Supply Quota (PSQ) Policy. The PSQ Policy is a set of procedures, established by DFO in consultation with the Ontario Dairy Council and other processors, for the marketing of the available milk supplies to industrial milk plants.

Each industrial milk plant manufacturing products in Classes 3 to 5 has been allotted a plant supply quota. This quota entitles the holder to a share of the available milk supply, after the on-demand requirements have been met.

For further information on the marketing of milk in Ontario or plant supply quotas; please direct your inquiries to

Milk Allocation Policy  (effective May 1, 2017)




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