September 29, 1999
(Forest Resources and Agrifoods)

Dairy industry vital contributor to provincial economy

Today and tomorrow, 100 key players in the Canadian dairy industry are attending the Canadian Milk Supply Management Committee (CMSMC) meetings at the Delta Hotel in St. John's. The meetings are being hosted by the Dairy Farmers of Newfoundland and Labrador (DFNL) who are considering joining the National Milk Marketing Plan which is administered by the CMSMC. This plan is a federal-provincial agreement governing the management of supply of milk in Canada.

Gerard Cormier, chairman of DFNL, is pleased with the progress of the industry. "Farmers and processors have worked hard to make the industry what it is today. There are many challenges ahead of us: the upcoming World Trade Talks (WTO), reducing our feed costs and ensuring competitiveness with other provinces and countries. We are in a global market place. Our dairy farms are becoming larger and more technologically advanced in order to meet the challenges."

The CMSMC meets five times a year to review and consider the major production, economic and marketing factors affecting the dairy sector. These include trends in domestic consumption and production of milk and dairy products, the level of skim milk powder and butter stocks held by the Canadian Dairy Commission (CDC) and the trade, and export market activities.

Newfoundland and Labrador's dairy industry, a $100 million business, employs over 700 people and is one of the most modern operations in Canada. It is an integral part of the agrifoods sector, especially in rural Newfoundland and Labrador. The province is self-sufficient in the production of fluid milk and has gone from producing eight million litres of milk in 1983 to a 300 per cent production increase of 32 million litres of milk in 1999.

Kevin Aylward, Minister of Forest Resources and Agrifoods said: "Land development and farm expansions, costing in excess of $7 million, are ongoing at this time. Farms are increasing acreages in forages, corn and grain. The agrifoods industry is a vital contributor to the rural economy of Newfoundland and Labrador. On a daily basis, I see the importance of the dairy farmers in providing employment opportunities and contributing to the overall economic health of the province. The Newfoundland dairy industry will remain a vital contributor to the economy of Newfoundland and Labrador into the new millennium."

Media contact: Cynthia Layden-Barron, (709) 729-6183.

1999 09 29 3:40 p.m.