Dairy dumping continues in Canada as foodservice demand falls

For the second consecutive week, dairy producers across Canada have been forced to dump excess milk as foodservice demand continues to fall. Manufacturers are trying to switch production to the retail segment where demand has surged, but this takes time and is part of the reason for the dumping.

Dairy prices for farmers are fixed, taking into account input costs and it is disheartening for producers to see supply destined for the foodservice sector go to waste when it could be used in the retail sector.