Farm Credit Canada is optimistic about the future of Canada's dairy sector.
But Chief Economist J. P. Gervais cautions the industry will need to continue to modernize and innovate to remain competitive.
FCC's latest Dairy Sector Report points out increased consumption of yogurt and specialty cheeses has helped offset declining consumption of more traditional dairy products such as milk and ice cream.
Agriculture and AgriFood Canada's long-term predictions, however, suggest Canada's milk consumption will climb almost 7 per cent from 2015 to 2024.
Gervais suggests further development of unique Canadian dairy products that meet changing consumer preferences will help sustain and strengthen demand among Canadian consumers.
While he's confident the industry can meet a number of challenges, Gervais says modernization of both dairy production and management practices will be key to the sector's future competitiveness.
