Quebec Milk Producers Joint Plan (FPLQ)

1360 Words3 Pages

The dairy industry is a key contributor to the Canadian agri-food economy, ranking second in 2012, behind meat and ahead of oil seeds. In 2012, the 13,000 dairy farms in all of Canada produced about 3 billion litres of milk and generated $5.92 billion in total net farm receipts, of which Quebec farmers captured 32%. Except for a fixed volume of cheese imports and small amounts of other products entering the country, the domestic market for fluid milk and dairy products is supplied by Canadian milk producers.

The dairy industry in Canada is heavily regulated and organized. It has adopted a system of supply management and collective marketing that ensure a balance between the demand for dairy products and the supply for industrial milk. This …show more content…

The FPLQ acts as a delegate for producers to negotiate all sales conditions on their behalf with a representative of processors, bearing in mind the support prices set by the CMSMC as well as factoring in general economic conditions .It also allocates the provincial quota for industrial milk production to dairy producers in accordance with the National Milk Marketing Plan.
Quebec has about 6, 300 dairy farms throughout its territory compared to just over 13,000 in Canada. In 2011, excluding the effects of processing, the production sector and its suppliers, the Quebec dairy production generated $2.7 billion in contributions to the GDP, 51, 000 jobs, and $613 million in tax revenues. It is the highest milk producing province and has the highest numbers of farms involved in milk production. The economic incentives from participation in the dairy industry have thus increased specialization and prompted many Quebec farms to restructure their agricultural activities towards dairy production, specifically milk production. In fact, most dairy farms generate the majority of their revenues from milk …show more content…

These improvements have also reduced production costs, and increased productivity and economic efficiency. In other worlds, producing greater volumes of milk is achieved at lower costs and with a smaller herd. In fact, milk production increased 2.2% from the previous year in 2013. Quebec’s abundant supply of high-quality forage has been an important factor in remaining competitive in the production of milk.

Apart from dairy farmers restructuring their activities to take advantage of these efficient practices and technological advances, they also reinvest their profits so that to maintain or to prove their facilities. Every year, Quebec dairy farmers reinvest about $400 million into their

More about Quebec Milk Producers Joint Plan (FPLQ)

Open Document