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Agriculture

How Canadian Dairy Farms Can Adjust to New Dairy Demand

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How Canadian Dairy Farms Can Adjust to New Dairy Demand

Many changes occurred around the world as a result of the coronavirus pandemic. In Canada, while schools and businesses closed, consumers flocked to the supermarkets to buy essentials.

Perishable goods flew off the shelves, resulting in limits being placed on items like dairy and poultry. The standard distribution system schedule put in place for dairy products could not keep up with buyers’ increased shopping.

While retail demand from grocers skyrocketed, orders from the foodservice industry plummeted. This has resulted in unforeseen fluctuations in the dairy market.

Hotels, restaurants, schools and eateries are closed or operating at limited capacity. As a result, there is now an enormous surplus of milk that has nowhere to go. Farmers are not equipped with storage spaces to accommodate the excess supply. Unlike agriculture products like potatoes, milk has to be sold immediately or risk spoilage.

Cows will continue producing milk, regardless of fluctuations in the market. While farmers have the option to reduce the size of their herd or change diet or nutrition, these things could prove detrimental when the market stabilizes.

The Supply Management System

A supply management system controls production quotas and imports for Canadian dairy, chicken, turkey and eggs. It was established in the1970s to coordinate production and demand while simultaneously controlling imports. By operating under this method, prices are stabilized for both producers and consumers.

A national agency represents each industry, and they are in charge of setting production levels that match provincial demand. Farmers in each province are allocated production quotas that are meant to prevent surpluses or shortages.

The original quotas were based on consumer needs pre-pandemic. As a result of these unforeseen events, farmers must now adjust to the new Canadian dairy demand. Here are four main ways farmers can adapt to the changing times.

  1. Dump the Milk

Producers say that discarding raw milk is inevitable at this stage. Farmers are reporting that they have been asked to take turns dumping milk. Although they’re paid for it, the waste could amount to as much as 5 million litres every week.

This disposal method is unsustainable and should only be utilized while the market is above capacity. Cows must continue to be milked to keep them comfortable and healthy, and production must continue to ensure product availability in retail stores.

  1. Donate to Food Banks

Rather than dumping milk, some farmers have begun donating to food banks to support Canadians in need. While this is a positive form of dispersing the milk surplus, it has the potential to overwhelm food banks that may not have the storage capacity to support this influx.

Additionally, the raw milk provided from farmers must be processed, which complicates the standard donation process.

  1. Improve Operations

Dairy farmers should focus on improving operations to become more efficient and cost-effective. Many producers have begun investing in updated equipment and robotics to save time and money.  Competition is set to increase as a result of import growth projected for the next decade. To maintain a market edge, operations should be improved and simplified wherever possible.

  1. Expand or Retire

In 2019, the Canadian federal government announced an aid package valued at $1.75 billion to compensate supply-managed dairy producers over an eight-year period. The Dairy Direct Payment Program is one part of this aid package and provides $345 million payments as compensation during 2019 and 2020.

The aid package was proposed as a result of import shifts. The Canadian government has opened part of its domestic market to foreign producers as part of several free-trade negotiations. To adapt to increased competition from foreign products, Canadian producers should plan to expand their operations or retire. Larger farms will be able to sustain demand while simultaneously upgrading their methods to be constantly improving.

Smaller producers may not be able to afford the necessary production updates to keep up with competitors.

Future Demand

These are unprecedented circumstances. As schools, businesses and restaurants reopen, dairy demand will increase. With indoor capacity requirements and shifts in consumer trends, consumption levels will undoubtedly continue to fluctuate.

While farmers should take steps to dispose of surplus responsibly, they should not halt production or decrease their operation size.

Read more from Emily Folk

I’m Emily Folk, and I grew up in a small town in Pennsylvania. Growing up I had a love of animals, and after countless marathons of watching Animal Planet documentaries, I developed a passion for ecology and conservation.  You can read more of my work by clicking this link: Conservation Folks.

Canadian Federal Government Taking Measures to Reduce Impact of COVID-19 on Agriculture

I’m Emily Folk, and I grew up in a small town in Pennsylvania. Growing up I had a love of animals, and after countless marathons of watching Animal Planet documentaries, I developed a passion for ecology and conservation.

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Agriculture

Restoring balance between renewable energy, agricultural land and Alberta’s iconic viewscapes

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Alberta is known around the world for many things – some of the most breathtaking and iconic scenery on earth, a world-class agricultural industry that puts high-quality food on tables across the globe and a rich history of responsible energy development. Alberta is a destination of choice for millions of visitors, newcomers and investors each year.

To ensure Alberta’s continued prosperity, it is imperative that future energy development is balanced with environmental stewardship, protecting Albertans’ ability to use and enjoy their property, and safeguarding agriculture for continued food security.

Alberta’s renewable energy sector has grown rapidly over the past decade, yet the rules to ensure responsible development have not kept up. As a result, municipalities, agricultural producers and landowners across the province raised concerns. Alberta’s government is fulfilling its duty to put Albertans first and restore the balance needed for long-term success by setting a clear path forward for responsible renewable energy development.

“We are doing the hard work necessary to ensure future generations can continue to enjoy the same Alberta that we know and love. By conserving our environment, agricultural lands and beautiful viewscapes, our government is protecting and balancing Alberta’s long-term economic prosperity. Our government will not apologize for putting Albertans ahead of corporate interests.”

Nathan Neudorf, Minister of Affordability and Utilities

Amendments to the Activities Designation Regulation and Conservation and Reclamation Regulation provide clarity for renewable energy developers on new and existing environmental protections.

These changes will create consistent reclamation requirements across all forms of renewable energy operations, including a mandatory reclamation security requirement. Albertans expect renewable power generation projects to be responsibly decommissioned and reclaimed for future generations. Alberta’s government stands firm in its commitment to protect landowners and taxpayers from being burdened with reclamation costs.

“We want to protect landowners, municipalities and taxpayers from unfairly having to cover the costs of renewable energy reclamations in the future. These changes will help make sure that all renewable energy projects provide reasonable security up front and that land will be reclaimed for future generations.”

Rebecca Schulz, Minister of Environment and Protected Areas

Alberta’s government committed to an ‘agriculture first’ approach for future development, safeguarding the province’s native grasslands, irrigable and productive lands. The protection of agricultural land is not only essential to food production, but to environmental stewardship and local wildlife protection.

The Electric Energy Land Use and Visual Assessment Regulation follows this ‘agriculture first’ approach and enhances protections for municipalities’ most productive lands, establishing the need to consider potential irrigability and whether projects can co-exist with agricultural operations. These changes are critical to minimizing the impacts of energy development on agricultural lands, protecting local ecosystems and global food security. With these new rules, Alberta’s farmers and ranchers can continue to produce the high-quality products that they are renowned for.

“Our province accounts for nearly 50 per cent of Canada’s cattle, produces the most potatoes in the country, and is the sugar beet capital of Canada. None of this would be possible without the valuable, productive farmland that these new rules protect. Understanding the need for an ‘agriculture first’ approach for energy development is as simple as no farms, no food.”

RJ Sigurdson, Minister of Agriculture and Irrigation

The new Electric Energy Land Use and Visual Assessment Regulation also establishes specific guidelines to prevent projects from impacting pristine viewscapes. By establishing buffer zones and visual impact assessment zones, Alberta’s government is ensuring that industrial power projects the size of the Calgary Tower cannot be built in front of UNESCO World Heritage sites and other specified viewscapes, which will support the continued growth and success of Alberta’s tourism sector.

As Alberta’s population and economy grows, it is critical that the province has the additional power generation needed to meet increasing demand. Power generation must be developed in a balanced and responsible manner that promotes environmental stewardship, ensures the continued enjoyment of Alberta’s beautiful landscapes, and safeguards food security by protecting Alberta’s valuable agricultural lands. By encouraging the responsible development of additional power generation with these new regulations, Alberta’s government is listening to Albertans and ensuring the electricity grid is affordable, reliable and sustainable for generations to come.

Summary of Policy Changes

Following the policy direction established on February 28, 2024, Alberta’s government is now implementing the following policy and regulatory changes for renewable power development:

Agricultural lands

The new Electric Energy Land Use and Visual Assessment Regulation takes an “agriculture first” approach.
• Renewable energy developments will no longer be permitted on Land Suitability Rating System (LSRS) Class 1 and 2 lands unless the proponent can demonstrate the ability for both crops and/or livestock to coexist with the renewable generation project,

• In municipalities without Class 1 or 2 lands, Class 3 lands will be treated as Class 1 and 2.

• An irrigability assessment must be conducted by proponents and considered by the AUC.

Reclamation security

Amendments to the Activities Designation Regulation and Conservation and Reclamation Regulation create consistent reclamation requirements across all forms of renewable energy operations, including a mandatory reclamation security requirement. There will be a mandatory security requirement for projects located on private lands.

• Developers will be responsible for reclamation costs via a mandatory security or bond.

• The reclamation security will either be provided directly to the province or may be negotiated with landowners if sufficient evidence is provided to the AUC.

Viewscapes

The Electric Energy Land Use and Visual Assessment Regulation ensures pristine viewscapes are conserved through the establishment of buffer zones and visual impact assessment zones as designated by the province.

• New wind projects will no longer be permitted within specified buffer zones.

o Other proposed electricity developments located within the buffer zones will be required to submit a
visual impact assessment before approval.

• All proposed electricity developments located within visual impact assessment zones will be required to submit a visual impact assessment before approval.

Municipalities

The AUC is implementing rule changes to:

• Automatically grant municipalities the right to participate in AUC hearings.

• Enable municipalities to be eligible to request cost recovery for participation and review.

• Allow municipalities to review rules related to municipal submission requirements while clarifying consultation requirements.

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Agriculture

Saskatchewan potash vital for world food

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From Resource Works

Fertilizer Canada says the fertilizer industry contributes $23 billion a year to Canada’s economy and provides over 76,000 jobs.

A small potash extraction company in Manitoba calls Saskatchewan “the Niagara Falls of potash in Canada.”

The current 10 mines in Saskatchewan produced around 13 million tonnes in 2023, accounting for some 33% of global potash production, and exported 95% of it to more than 75 countries.

Potash mine No. 11 in Saskatchewan is working toward production in late 2026. That’s the $14-billion Jansen mine, owned by BHP, located 140 kilometres east of Saskatoon. It aims to produce around 8.5 million tonnes a year to start, and as much as 16–17 million tonnes a year in future stages.

With potash used primarily in agricultural fertilizers, Saskatchewan’s output is a key ingredient in global food security. Fertilizer is responsible for half of the world’s current food production.

As Real Agriculture points out: “Fertilizer production is not only an economic driver in Canada, but it is also a critical resource for customers around the world, especially in the United States.”

This is particularly important as Russia’s war on Ukraine has raised doubts about reliable supplies of potash from Russia, the world’s No. 2 producer, which produced 6.5 million tonnes in 2023.

In fertilizers, the potassium from potash increases plant growth and crop yields, strengthens roots, improves plants’ water efficiency, and increases pest and disease resistance. It improves the colour, texture, and taste of food. Natural Resources Canada adds: “Potassium is an essential element of the human diet, required for the growth and maintenance of tissues, muscles and organs, as well as the electrical activity of the heart.”

Canada’s federal government has included potash as one of 34 minerals and metals on its list of critical minerals.

Fertilizer Canada says the fertilizer industry contributes $23 billion a year to Canada’s economy and provides over 76,000 jobs.

The potash operations in Saskatchewan are in the Prairie Evaporite Deposit, the world’s largest known potash deposit, formed some 400 million years ago as an ancient inland sea evaporated. The deposits extend from central to south-central Saskatchewan into Manitoba and northern North Dakota. These deposits form the world’s largest potash reserves, at 1.1 billion tonnes.

Manitoba’s first potash mine is close to bringing its product to market. The PADCOM mine is 16 kilometres west of Russell, Manitoba, near the Manitoba-Saskatchewan border. The Gambler First Nation has acquired a one-fifth stake in the project.

PADCOM injects a heated mixture of water and salt underground to dissolve the potash, which is then pumped to the surface and crystallized. CEO Brian Clifford says this process is friendlier to the environment than the conventional method of mining underground and extracting ore from rock deposits.

Saskatchewan’s northern potash deposits are about 1,000 metres below the surface and are extracted using conventional mining techniques. To the south, deposits are anywhere from 1,500 to 2,400 metres deep and are mined using solution techniques.

PADCOM aims to produce 100,000 tonnes of potash per year, eventually growing to 250,000 tonnes per year. However, PADCOM president Daymon Guillas notes that across the Manitoba-Saskatchewan border, the Nutrien potash mine near Rocanville, Saskatchewan, produces five to seven million tonnes per year.

“In 36 hours, they produce more than we do in a year. Saskatchewan is the Niagara Falls of potash in Canada. Our little project is a drip, just a small drip out of the faucet.”

(New Brunswick once had a small potash mine, but it closed in 2016.)

Real Agriculture says: “Canadian-produced potash remains vital to the U.S.’s ability to produce enough corn for feed, ethanol production, and export requirements, at a time when the U.S. heightens its focus on reducing exposure to international integrated supply chains in favour of U.S. domestic supply chains.”

Writer Shaun Haney continues: “For the U.S. corn farmer, Canadian-produced potash is critical for achieving the top yields. According to StoneX, over the past three years, Canada accounts for roughly 87 per cent of potash imports by the U.S., while Russia sits at 9.5%.”

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