Demand for cream and butter pushing dairy industry to the max

Smith said there is not much of a demand for this by-product which is usually dried into skim milk powder. There isn’t a need for the powder, so the by-product is being disposed of in Ontario (although she said it’s a ‘really small amount’).

“We have to produce more milk to meet the demand but we have this by-product that’s left and the market just doesn’t want it and the processors can’t dry it fast enough,” said Smith.

Every industry has a by-product, she stressed. Usually it would be used in this case, but the dairy industry has facing nationwide demand, leading to a spike in growth in the market.

Although Ontario seems to be facing an intense surplus of this milk by-product, Saskatchewan hasn’t yet reached that point. Still, Smith said you can never really predict if or when the province will get there.

“In the summer, the demand decreases for milk,” she said. “Kids are out of school, people are sometimes drinking other types of drinks in the summer.”

“So those two things coming together may lead to that situation in the future. We can’t predict it yet.”

And as far as the mysterious, and steep, increase in demand for butter and cream, something known to possibly hinder your dieting efforts…Smith said they have their theories.

“I think it’s because for so many years the public was told that butter was bad for you and bad for your cholesterol,” said Smith. “That’s being debunked.”

“People are realizing that butter as a natural product, that’s not three quarters chemicals, is actually better for you to be eating.”

Smith also attributes it to the recent Greek yogurt trend and an increase in coffee intake, meaning more people use cream on a daily basis.

“They’re all great products and healthy and good for you,” said Smith.

If Saskatchewan does end up with a surplus of milk by-products, Smith said dumping it will be a last resort. First, provinces move milk around to where it’s needed, and the always try and match production with demand.

“As our demand has gone up, producers have been asked to produce more milk, and they have been,” she said.

According to Smith, there has been a growth in the market of 6 or 7 per cent in the last couple years, which she labels “very high”. This is something that farmers can smile about.

“They’re very pleased about that,” she said. “Growth in the market is a wonderful thing.”

Beyond that, the growth has also positively impacted other sectors. There has been an increase of 1000 cows in the province, a $3 million increase in feed usage, as well as an increase in usage of other resources.

“It’s good for the farmers but it’s also good for all of the industries that they buy things from,” said Smith. “It’s really benefitting the whole Saskatchewan economy.”

asoloducha@jpbg.ca

On Twitter: @alex_soloducha

by Alex Soloducha

Demand for cream and butter pushing dairy industry to the max

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