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Ontario Milk Supplies

Last Updated: May 10, 2012

Ontario operates within a national milk supply-management program. Ontario’s share of the total Canadian market is approximately 32.0 per cent. If the total Canadian dairy market grows, irrespective of whether the growth is in the consumption of existing or new dairy products, that growth is shared between all provinces, i.e., for every 100 litres of growth in Canada, Ontario’s share in the production of the 100 litres is 32 litres.

With the exception of products manufactured from milk acquired under the Canadian Dairy Commission’s Domestic Dairy Product Innovation Program (DDPIP), Ontario’s share of any growth does not increase, simply because a new processor chooses to begin processing in Ontario.
 

On Demand Milk Supplies

If a dairy plant wishes to utilize milk to manufacture products which fall within the Classes 1 and 2, that milk is supplied “on demand”. That is, the plant can purchase all of the milk they require in accordance with any credit limits placed on their purchases. *please note that yogurt, beverage yogurt and yogurt shakes (excluding frozen yogurt products) do not qualify for “on demand” supply*

In Ontario, on demand milk represents approximately 65 per cent of the total milk sold annually. However, this figure can vary from a low of 35 per cent to a high of 80 per cent, depending on the day of the week, the time of the year and/or whether there is a holiday involved (statutory holidays).
 

Residual Milk Supplies

The balance of the milk, residual milk, is the remaining milk after the on-demand requirements have been met. This milk is allocated to dairy plants based on a system of plant supply quotas (PSQs). For further details, please refer to:

 

 

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