Canadian Dairy Commission

The Canadian Dairy Commission (French: Commission canadienne du lait) is an Ottawa-based Government of Canada Crown Corporation that plays a role of administrator, facilitator and stakeholder in the public policy related to the Canadian dairy industry. The CDC's mandate is to coordinate dairy policies in a jurisdiction that is shared between both provincial and federal governments.[1][2] In the early 1970s, when the dairy industry became the first industry in Canada to be operated under the national supply management system (NSMS), the CDC was named as facilitator and administrator coordinating dairy policies and providing a framework for the management of the Canadian dairy industry.[1]

The Commission is in relations with the Canadian dairy industry.
Canadian Dairy Commission
Agency overview
Formed1966
JurisdictionGovernment of Canada
HeadquartersOttawa, Ontario
Employees72
Minister responsible
  • The Honourable Marie-Claude Bibeau, Minister of Agriculture
Agency executives
  • Serge Riendeau, Chief Executive Officer
  • Jennifer Hayes, Commission and Acting Chairperson
Websitewww.cdc-ccl.gc.ca

Mandate

The CDC coordinates dairy policies in a jurisdiction that is shared between both provincial and federal governments.[1] In its role as stakeholder and facilitator, the CDC provides a framework for the management of the Canadian dairy industry.[1][3] The CDC's mandate was to ensure producers received a fair return on investment, and to ensure the quality and supply of milk.[4]

Its analogue is the poultry industry is the Farm Products Council of Canada.

Legislation

The 1967 Canadian Dairy Commission Act (1966–1967) established the Canadian Dairy Commission (CDC).[5] National agencies were authorized to establish the national supply management system (NSMS) under the 1972 Farm Products Agencies Act (FPAA).

History

The Canadian federal government has been active in its support of the Canadian dairy industry since 1890, when the first Dominion Dairy Commissioner, was appointed.[6]

In 1967 the Canadian Dairy Commission Act (1966–1967) was passed which established the Canadian Dairy Commission (CDC).[5]:13

In the early 1970s, the dairy industry became the first in Canada to be operated through the national supply management system (NSMS).[7]

The Canadian Milk Supply Management Committee (CMSMC) was established in 1970. The CMSMC was responsible for setting the national Market Sharing Quota (MSQ).[8]:31

Administration

The Minister of Agriculture and Agri-food is responsible for the Canadian Dairy Commission.

One of the CDC's mandates is to "ensure the quality and supply of milk".[4]

Supply management

Since the supply management system was put into place, the CDC has been responsible for dairy support prices and market sharing quotas.[1] Canada's supply management system "coordinates production and demand while controlling imports as a means of setting stable prices for both farmers and consumers."[3]

The CDC also chairs the Canadian Milk Supply Management Committee, which coordinates the management of industrial milk supplies in Canada.

Support prices for raw milk

Once a year, after consultation with industry stakeholders, the CDC sets the support price for support price of butter and skim milk powder. Provincial marketing boards then use these prices as references to determine the price of raw or industrial milk in each province. The CDC oversees the removal from the market of surplus butterfat and SMP for export or later sale.[9][10]

Market Sharing Quota (MSQ)

In the early 1970s, dairy became the first commodity in Canada to operate a national supply management system. The CDC acts as a facilitator in the setting of Market Sharing Quotas (MSQ) for industrial milk at the national level.[9]

Programs

In its role as both administrator and facilitator, the CDC manages several programs on behalf of the industry.[1][11]

The Special Milk Class Permit Program

The Special Milk Class Permit Program sets a competitive price for raw or industrial milk sold to milk processors based on its end use.[1]

Domestic Seasonality Programs

In collaboration with the private sector, the CDC monitors the seasonal domestic supply of milk to maintain a balance between supply and demand through its Domestic Seasonality Programs.[1]

Dairy Innovation Program

The CDC's Dairy Innovation Program promotes the creation of innovative dairy products for domestic consumption.[1]

Dairy Marketing Program

CDC's marketing arms promotes consumer awareness of dairy products and ingredients produced in Canada.[1]

Workforce Development Initiative

The Canadian Dairy Commission (CDC) is committed to supporting a highly skilled, diverse workforce that is well adapted to meet the current and future needs of our dairy producing and processing sectors. The WDI encourages productivity, competitiveness and innovation by supporting the education and recruitment of a dynamic workforce.  It is composed of four funding programs:

1.    Scholarship Program: scholarships for graduate students in fields related to the dairy industry

2.    Career Promotion Program: promotion of careers in the dairy industry

3.    Education Program: creation of government-certified, full-time education programs in order to train qualified staff to work in dairy plants

4.    Continuing Education Program: opportunities for continuing education of current dairy plant and farm staff[12]

Milk Access for Growth

The Milk Access for Growth (MAG) program guarantees a sufficient supply of milk (whole or skim) to manufacture products that will grow total market demand. In March 2019, the CDC decided to put a moratorium on new applications. The program is being evaluated to ensure its relevance in future years.[12]

Matching Investment Fund

The Canadian Dairy Commission (CDC) remains committed to supporting an environment that encourages growth and innovation in the manufacture and use of Canadian dairy products and ingredients.The Matching Investment Fund (MIF) is designed to help eligible companies and Food Technology Centres with product development initiatives that help stimulate demand for Canadian dairy products and ingredients.[12]

Storage Assistance for Cheese Program

The main objective of the SAC program is to encourage cheese manufacturers to produce various types of cheese (fresh or frozen), aged cheeses and rennet casein for the domestic market during periods of the year when milk supply exceeds domestic requirements, as determined by Provincial milk marketing boards or agencies.[12]

References
  1. "Canadian Dairy Commission". Canadian Dairy Commission (CDC). 2018. Retrieved August 17, 2018.
  2. https://www.cbc.ca/news/business/trump-usa-canada-dairy-battle-1.4075508
  3. Heminthavong, Khamla (December 17, 2015). "Canada's Supply Management System". Library of Parliament Research Publications. Economics, Resources and International Affairs Division. Retrieved June 21, 2018.
  4. "Mandate". Canadian Dairy Commission. March 19, 2010. Retrieved October 19, 2013.
  5. Hedley, Douglas D. (2015). "The Evolution of Agricultural Support Policy in Canada" (PDF). CAES Fellows Paper. p. 38. Retrieved July 18, 2018.
  6. "A Brief History of Supply Management in Canada: Evolution of the Canadian Dairy Commission" (PDF). Western Dairy Digest. 1999. p. 2. Retrieved August 17, 2018.
  7. "Supply management". CDC. nd. Retrieved August 17, 2018.
  8. Jean-Denis, Frechette; Rutherford, Sally (October 14, 1986). "National Dairy Policy" (PDF). Backgrounder. Research Branch Library of Parliament. p. 39. Retrieved July 18, 2018.
  9. Mussell, Al (May 2016). "Understanding the Dynamics of Milk Pricing and Revenue in a Time of Change" (PDF). Independent Agri-Food Policy Note. Guelph, Ontario: Agri-Food Economic Systems Newsletter. Retrieved June 21, 2018.
  10. "Milk, for all it's worth: How prices are set", The Chronicle Herald, December 21, 2013, retrieved November 8, 2015
  11. http://publications.gc.ca/collections/collection_2011/ccl-cdc/A88-2011-eng.pdf
  12. http://www.cdc-ccl.gc.ca/CDC/index-eng.php?id=3812
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