Blake Fraser: every year Canada produces 8.5 billion liters of milk
- There are 471 milk processing plants in Canada, 72 of them are located in Ontario. Each year the country produces 8.5 billion liters of milk, the corresponding figure in Ontario is 2.9 billion liters, said Blake Fraser.
The Canadian expert added that within the whole market of industrial food production in Canada, 16% of jobs are created by the dairy processing sector, the agricultural sector of the country totals 3565 farmers.
To continue the conversation about farms in Canada, Fraser told about the organization of dairy farmers in Ontario; all processors of the country cooperate with it. The terms of cooperation are stable: both large and small companies can buy milk at a fair price. Interaction with farmers is productive; payment is made twice a month after the actual delivery of milk.
- At regular meetings of processors and members of our Dairy Association, competitive spirit remains outside of communication. Our goal is to maintain equal decent working conditions for all players in the industry, to fight for fair wages. In order for the business mechanism to rotate, we need to maintain the same level of pricing with competitors, but it is possible to reduce the price, added the Vice President and General Manager of “Kawartha Dairy”.
The price fluctuation, according to the expert, is particularly noticeable when the state raises the cost of water, electricity and fuel. About once a year, the prices rise by 1%, the level of wages rises accordingly. 20% of sales is salary, 10-15% of turnover is spent on logistics, net profit margin is about 6%.
The budget for the promotion of dairy products is the responsibility of the Association of Ontario farmers - the Council does not invest in this area. The dairy farmers do the marketing through the Association on their own.
- Dairy producers initiate research and are engaged in advertising in the direction of promotion, as well as people who produce vegetable milk. The fight is about advertising and research on both sides. Why are farmers interested in this? It is started many years ago, deductions for the sale of milk from farmers make the cost of milk higher, - explained Fraser.
Within the framework of the work of the organization of dairy farmers, the issue of distribution of surpluses, if any, is solved – most often they are directed to the production of milk powder or butter, cheese and products with a relatively long shelf life.
We remind you that now a large-scale Motor Rally "Way to milk!" is being held in Canada. More than 50 people from Russia, representing the industry of milk production and processing, take part in the event.
