Farm Credit Canada says the Canadian dairy industry is enjoying steady growth but will need to modernize to remain competitive.
FCC Chief Agricultural Economist J.P. Gervais says innovation and modernization are keys to future success to tap into the growing demand for specialty dairy products.
He says yogurt consumption is expected to jump 21.6 per-cent and specialty cheeses by 9.2 per-cent by 2024.
In the last six years, butter consumption has risen 11 per-cent due to shifts in preferences for food with fewer health concerns and as alternative uses in cooking.
But milk and ice cream consumption has been on the downswing.
Agriculture Canada expects milk consumption to rise slowly, with a 6.8 per-cent jump between 2015 and 2024.
Gervais says markets need to be found for milk proteins.
He also feels new trade agreements are not a major threat to the dairy industry, but there will need to be some adjustments. He feels the dairy supply management system will survive and adapt to market