Government announces expansion of dairy industry

Ed Byrne, Minister of Natural Resources, along with Robert Walsh, Chairman of the Dairy Farmers of Newfoundland and Labrador, announced today two new producers have been accepted into the dairy industry in Newfoundland and Labrador. The announcement was made today during the annual general meeting of the Dairy Farmers of Newfoundland and Labrador.

The Dairy Farmers of Newfoundland and Labrador manages production and markets milk through a supply-managed quota system. In May 2004, the Dairy Farmers of Newfoundland and Labrador embarked on a New Entrants Program inviting expressions of interest from farmers wanting to become dairy producers following a decision that two new producers would be admitted to the dairy industry in 2005.

Interest for the program was very high and the Board of the Dairy Farmers of Newfoundland and Labrador received a number of applications. A screening committee spent a period of weeks reviewing the applications and the successful proponents are Eric and Michelle Spears of Corner Stone Farm Ltd. in Cormack and John Wells of Robinsons. With the addition of the new entrants, the number of dairy farms in the province is now 42.

�I am certainly pleased to welcome these two new dairy farmers into this sector,� said Minister Byrne. �Dairy farming is the leading sector in the agri-foods industry in Newfoundland and Labrador worth over $100 million to the provincial economy and employing over 1,000 people.�

Minister Byrne indicated that the dairy sector has experienced significant growth in recent years and more growth is anticipated. That�s due to the fact that the province obtained additional industrial milk quota through the National Marketing Plan in 2001. Currently, the province has an industrial milk quota of 15 million litres � up from seven million litres last year - and the additional quota will see this amount rise to 31 million litres.

�We are certainly at a very exciting time within the dairy sector in this province as we expect the industry will double over the next 10 years,� Minister Byrne. �This additional industrial milk quota will result in tremendous growth in secondary processing in such products as cheese, fresh cream, yogurt and butter.�

Minister Byrne commended the Dairy Farmers of Newfoundland and Labrador and its members for the leadership and commitment shown in strengthening the dairy sector in this province and thereby supporting economic growth throughout the province.

�Government is working in partnership with industry to ensure that we are able to take advantage of the growth opportunities that this industry presents,� said Minister Byrne. �For example, a significant government initiative is the five-year $17.5 million land consolidation and development program we started this year which will increase the amount of farm land available to farmers to support their growing enterprises.�

Mr. Walsh wished the new dairy producers every success and referenced the significant growth the industry is experiencing with total production increasing by more than 20 per cent over the past two years resulting in an annual $5 million increase in production revenue. He also took the opportunity to comment on government�s support of the agriculture industry.

�The investment the provincial government is directing towards agriculture is well warranted and the people of Newfoundland and Labrador will reap economic benefits for years to come,� said Mr. Walsh. �The dairy industry is working progressively to build on the commitment of government, create much-needed jobs for rural Newfoundland and Labrador and ensure significant economic benefits for our province.�

Media contact:
Carmel Turpin, Communications (709) 729-5282, 685-4624
Derek Connolly, Dairy Farmers of Newfoundland and Labrador (709) 364-6634, dconnolly@dfnl.nf.net
Harry Burden, Dairy Farmers of Newfoundland and Labrador (709) 364-6634

2005 10 28                               12:40 p.m.