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AGR 1110
Nick de Jong
11/25/18
Canada’s Dairy
our diets, providing an important source of nutrients, carbohydrates and proteins (Sodhi et el.
2012). Dairy milk is processed for consumer in order create a large range of products. These
products include: fresh milk, cheese, yogurt, ice cream, butter and dried and condensed milk (St.
Pierre, 2013).
Annually Canadian dairy farmers produce 84.5 million hectoliters of milk. Half a million
hectoliters of milk Is produced by goats and 84 million hectoliters are produced by cows. The
average Canadian will consume 246 kg of dairy products including 70 liters of milk.
The dairy industry in Canada has grown into an industry that contributed $6 billion to
Canada’s economy, according to the 2015 farm cash receipts. Cows contribute to 83 percent of
the world milk production and water buffaloes account for 13 percent,
Supply management
As you probably know, the dairy farming sector in Canada operates under what is known
as supply management. All milk in Canada must bus sold under the supply management system.
Supply management ensures the farmer: receives a fair milk price based on their cost of
production. It ensures that processers are supplied with a stable amount of milk and prevents
over production.
Supply management is good for the farmer, the processor and the consumer, but it comes at a
cost. It costs the farmer $24000 for every unit of quota. 1.3 units of quota is needed for every
cow. So, for a 50-cow dairy it would cost 1.5 million in quota.
With Donald Trump pushing on the door of Canada’s supply management system, it can
be hard making the decision to invest into dairy quota. If Canada eliminates the supply
management system, all money invested into dairy quota could be lost. Investing into quota may
also not be economically feasible. An alternative in milking dairy cows would be to milk water
buffalo. Milking water buffalo is very similar to milking cows, but there is no need to pay for
millions in quota.
Water Buffalo
The Water buffalo is a species that is very intelligent and calm (Borghese, 2005). The
water buffalo can be found all over the world. The population of water buffalo around the world
was about 168 million in the year of 2005. The large majority of buffalo are found in Asia
(Borghese, 2005). Asia holds 95.83% of the water buffalo population (Borghese, 2005).
Water buffalo, scientifically known as, Bubalus Bubalis, have been domesticated for thousands
of years. The Water buffalo has been more recently domesticated than the Bos taurus and Bos
indicus. The water buffalo was domesticated roughly 5000 years ago while the Bos taurus and
Bos indicus were domesticated around 10 000 years ago. Water buffalo originated in Asia,
primarily in an around India. The water buffalo id desired for their milk and meat, and to
preform heavy work. They have a great ability to pull large loads and do draught work.
http://www.mcclintocksfarm.ca/wp-content/uploads/2015/05/McClintocks-Farm-Buffalo.jpg
Genetics
North America is behind in the development of water buffalo milking. The water buffalo
is not native to America, and it has only been recently imported (Howard, 2018). Genetics are
new, but there is a large demand for the product. (Howard, 2018). In Canada, the breed that is
being imported is the Mediterranean buffalo. The Mediterranean buffalo has a black or dark
brown coat, they have curled horns which are flat at the bottom (Borghese, 2005). The average
body weight of a milking female buffalo is between 450kg and 650kg (Borghese, 2005). The
population size of the Mediterranean buffalo is around 400 000. Most of the Mediterranean breed
is located in Italy (265 000). A small portion of the population is located in other European
countries such as Romania, Albania, Greece and Macedonia. Some buffalo have been imported
into the United State of America and Canada. Some bulls are used for reproduction, but artificial
insemination is also a popular method used to breed the buffalo. The semen imported into
America mainly comes from Italy (Borghese, 2005). The average herd size of the Mediterranean
buffalo in Italy is 90 buffalo. Most buffalo in Italy are housed in traditional housing systems,
where they are housed indoors at night, and given free range paddocks for the duration of the day
(Borghese, 2005).
systems. Water buffalo produce 10 litres of milk daily with a fat content of 8 percent.
Water buffalo hold feed longer in the rumen compared to cows, but the whole time for
digestion is shorter in the water buffalo (Borghese, 2005). There is a higher number of rumen
bacteria in the water buffalo. The water buffalo breaks more material down in the rumen
(Borghese, 2005).
They are pretty similar to cows in size and temperament. Water buffalo are desired for
their capabilities to withstand illness and ability to adapt to various climates. A buffalo has a
Water Buffalos are able to be milked with the same systems dairy cows. The proven
technology and milk handling systems can be used to process water buffalo milk (Borghese,
2005).
Housing
In Italy in the 1950’s and 1960’s, many water buffalo farms converted from an extensive
management and housing system, to an intensive system. They made use of the existing structure
in place for the production of other dairy animals (Borghese, 2005). Water Buffalo similar in size
allowing them to be housed in the same facilities as dairy cows. Water buffalo milk production is
Table 1 Show the increase in milk yield per lactation of the course of 25 years during the
transition from extensive to intensive managed housing systems. The increase in milk production
has also been caused by a better availability of higher quality feed and selective breeding (Di
Palo, 2002).
Image 1. Holstien cows in an intensive housing system.
system is where buffalo are housed indoors year-round, feed is brought to them and water is
provided. A total mixed ration, fresh bedding in stalls and an unlimited supply of water all lead
to increased production in an intensive housing system. This system allows for all animals to be
closely monitored and make the job of artificially inseminating buffalo easier. Intensively
housing buffalo isn’t the only way buffalo can be raised. An extensive housing system is also a
popular method in raising water buffalo for milk production. Buffalo are also commonly grazed
in pastures, and then milked in a common area. The type of housing system plays a large role on
Water buffalo are also able to be milked using the same equipment as a typical dairy cow.
These proven technologies are able to be used in order increase production and initial investment
price.
Milk Production
The table below shows the water buffalo production traits for most common water
The Mediterranean buffalo breed has an average lactation duration of 270 days and a
milk yield between 900kg and 4000kg per lactation. The daily milk yield is as low as 4 kg per
day in extensive management systems with poor feed, and peaking at 20kg per day in an
Buffalo milk can be made into all the same products as any other milk. The most
common product is Buffalo mozzarella, almost all milk is made into mozzarella cheese. Water
buffalo mozzarella contains more fat then typical mozzarella from cows. (Addeo et al., 1993).
Water buffalo milk is very healthy and more nutritious than that of cow’s milk. Buffalo milk
contains 9 percent more calcium, 37 percent more iron and 11 percent more protein compared to
A common food allergy is lactose intolerance (Sheehan & Phipatanakul, 2009). The
people are unable to consume dairy products and must revert to alternative such as soy milk, rice
milk, or water (Sheehan & Phipatanakul, 2009). Water buffalo milk contains lactase, this allows
for people who don’t have the lactase enzyme in then, be able to then break it down. The shorter
chain fatty acids and smaller fat molecules are easier for the digestive system to break down
(Howard, 2018). This mean that people which are lactose-intolerant are able to consume water
buffalo milk.
Water buffalo farms in Ontario have contacted small milk processors in order to process
Market opportunity
The milk water buffalo produce is a very valuable item. Every liter of water buffalo milk
is sold to the processor for anywhere between $2-3. There has been a very high demand of
buffalo mozzarella cheese in Italy, and an increasing demand in Italy. The milk, sweet, and
creamy characteristics makes it desirable for chefs, diners, and consumer. There is a rising
demand for Water buffalo products in Ontario, specifically Toronto. The current demand for
Once processed, a small 400-gram jar of water buffalo yogurt can sell for $8.00.
Exporting
One of the largest mozzarella cheese producing countries is Canada. Around the world,
Canadian cheese is known for its high quality and variety. In Canada, around 496 kilograms of
cheese were produced. In Canada, the most produced varieties were cheddar and mozzarella.
After timber cheese is Canada’s main export product. Canada exported almost $68 million worth
https://news.clal.it/wp-content/uploads/2018/06/Italia-Import-Export-en.png
https://news.clal.it/en/italy-exports-less-dairy-higher-prices/
The Italian Cheese market is drastically expanding over the recent years. Italy shows an
The supply management system is great for Canada’s economy, producers and
consumers. The con of supply management is that there are very limited amounts of quota
available for purchase, and it is very costly.
http://www.dairyinfo.gc.ca/pdf/quota18_e.pdf
In Canada, a quota exchange occurs every month, some farmers sell their quota, and many other
farmers put in a bid to receive a portion of it. It many take months of bidding in order to get one
kilo of quota. Currently in Ontario, one kilo of butter fat costs $24000. This is a large price and
risk to pay for quota. The benefit if Water buffalo is that there is no need to pay for quota. This
makes it much easier for younger farmers to get into dairy production. It also makes it easier to
Production cost
The production cost of a typical dairy cow is very similar to the production cost of a
water buffalo. The production cost of a dairy cow is between 40 and 50 cents per kilogram of
milk produced (BAL, 2017). This includes feed costs, cost of quota, housing costs, utilities,
water, insemination, and all other aspects associated with milk production. The production cost
of water buffalo is in the same range as typical dairy cows. Water buffalo require all the same
things as dairy cows, they have the same diet, and housing and milking facilities. In the
production of water buffalo milk, quota does not need to be paid off, but the initial cost of the
The large difference is in the amount the farmer receives from the processor. For typical
dairy milk, the farmer receives around 70 cents per liter. For water buffalo milk, the farmer can
receive anywhere in the range of 2 to 3 dollars per liter. This a significant price difference. The
amount received for milk can vary depend in on the season. The demand for water buffalo milk
increases during the summer month and into the fall. To adapt to these demands, farmers must
Milking water buffalo can be a great opportunity for young farmers since it is so hard for
young farmers to get into the dairy industry. It is also simple for farmers who have quota to sell
and purchase water buffalo instead since the facilities suit both cows and water buffalo.
Producers must ensure that they setup a strong contract with a producer to ensure a
paycheck at the end of the week. There is a demand, but if no one can process the milk, it is
useless.
References
Addeo, F., Chianese, L. and Masi, P. 1993. The influence of processing conditions on the quality
of water buffalo mozzarella cheese. Prospects of buffalo production in the Mediterranean
and the Middle East, EAAP Publication, 62: 214-222.
BAL. EMB. (2017) What is the cost of producing milk. Retrieved online November 27, 2018
from: http://www.europeanmilkboard.org/fileadmin/Dokumente/Milk_Production_Costs
Borghese, A. (2005). Buffalo production and research. Retrieved online November 27, 2018
from http://www.istanbulmanda.org/wp-content/uploads/2015/06/
CLAL. 2018. Italy exports less dairy, but at higher prices. Retrieved online November 27, 2018
from: https://news.clal.it/en/italy-exports-less-dairy-higher-prices/
Di Palo, R. 2002. Modern technologies applied to buffalo farming for milk production. 53rd
Annual Meeting of the European Association for Animal Production, 1-4 September,
Cairo, Egypt.
Howard, Hananh. (2018). Buffalo Milk Varieties Stand Apart. Retrieved online November 27,
2018 from https://www.cheeseconnoisseur.com/buffalo-milk-varieties-stand-apart/
Sheehan, W. J., & Phipatanakul, W. (2009). Tolerance to water buffalo milk in a child with cow
milk allergy. Annals of allergy, asthma & immunology: official publication of the
American College of Allergy, Asthma, & Immunology, 102(4), 349.
“CLAL.it” contains a large amount of interesting information about dairy, and dairy trade from
around the world. This would be very interesting to see more on this website, but it seems to be
blocked, which is really too bad.
Thanks for reading, I found it very interesting, I hope you did too.