Dairy product: NAICS 3115
Overview
Ontario’s dairy product manufacturing sector is a key part of the food and beverage industry. A sizeable portion of production is used as ingredients for further processing. Ontario’s dairy sector accounts for over 8% of the food and beverage sector’s Gross Domestic Product (GDP)
- dairy product manufacturing
- ice cream and frozen dessert manufacturing
2020 Key indicators
In 2020:
- the dairy product sector was responsible for $1.14 billion in GDP, which is an increase of $147 million over the last five years
footnote 1 - there were 191 Dairy Product businesses in Ontario, an increase of 22.5% over the last five years
footnote 2 - there were over 9,300 people employed in the dairy product sector. Employment in this sector has increased by 959 or 11.4% over the last five years
footnote 3 - the dairy product sector was responsible for $6.7 billion in revenue from goods manufactured, which is a 27.4% growth rate over the last five years
footnote 4 - there were $374 million in exports and $665 million of products imported into the province. The United States is our main export market, followed by Egypt and South Korea
footnote 5
Ontario at a glance
Ontario is home to many dairy farmers who provide consumers with the highest quality dairy products that are fresh and local to the province.
Agropur Cooperative is a North American industry leader founded in 1938. As the largest dairy-processing cooperative in North America, Agropur is made up of over 8,800 employees who contribute to the processing of more than 6.2 billion litres of milk annually. In addition, Agropur boasts an impressive roster of respected brands and products such as Iögo, Natrel, OKA and Sealest
Chapman’s Ice Cream is the largest independent ice cream manufacturer in Canada serving a product lineup of over 280 frozen treats including premium ice creams, sorbet and a range of novelties. Driven by its ongoing innovative products for Canadians to enjoy, Chapman’s has been recognized by several organizations and has earned numerous national and international awards
Gay Lea Foods is a leading Canadian co-operative that strives to develop high-quality dairy products and desires the creation of a sustainable future within the Canadian dairy industry. Amongst its nine production facilities in Ontario, Gay Lea Foods manufactures butter, cheese, cream(s), milk and other dairy related products. Gay Lea Foods is 100% Canadian-owned by over 1400 farmers with approximately 50% of those farmers being in Ontario in 2021
Lactalis Canada are proud supporters of the Canadian dairy industry and its farmers who have integrated their values into providing Canadians with nutritious and high-quality products that fosters the compassion for dairy. The company’s catalog of brands include Astro, Balderson, Beatrice, Black Diamond, Cracker Barrel and Lactantia among others
Highlights and investment activities
Chapman’s Ice Cream will be expanding its Markdale facility by 90,000 ft2 by 2022 as consumption of ice cream continuously increases
Nestle Canada is investing $41.3 million in its London ice cream factory, allowing for the increase of production capacity and the creation of 88 new jobs
Recent substantial provincial investments within the dairy industry include Gay Lea Foods, Parmalat (Lactalis Canada), Fairlife and Feihe Canada Royal Milk
Trends
Trends in this sector include:
- dairy brands seeking to convey a more wholesome and natural image through hormone-free and organic ingredients
footnote 56 - cheese makers in North America appealing to the consumers’ interest in diversifying more natural cheese offerings
footnote 57 - innovation in dairy being centered around functional benefits, most notably involving immune support
footnote 56 - North Americans being increasingly aware of wellness benefits and the positive effects on bacteria on immunity and digestion through probiotic foods and drinks
footnote 56
Footnotes
- footnote[1] Back to paragraph 2020 Ontario Agri-food GDP
- footnote[2] Back to paragraph Labor market analytics and economic data
- footnote[3] Back to paragraph Ontario employment in agri-food industry, 2000-2021
- footnote[4] Back to paragraph Principal statistics for manufacturing industries, by North American Industry Classification System (NAICS)
- footnote[5] Back to paragraph Ontario agri-food trade by region
- footnote[6] Back to paragraph Agropur - Our history
- footnote[50] Back to paragraph Our Story - Chapman’s Ice Cream
- footnote[51] Back to paragraph About Our Co-operative - Gay Lea Foods
- footnote[52] Back to paragraph Lactalis in Canada
- footnote[53] Back to paragraph Chapman's Ice Cream eyes expansion in 2022
- footnote[54] Back to paragraph Nestlé Canada Announces $41.3 Million Expansion Investment in London Ice Cream Factory
- footnote[55] Back to paragraph Government of Canada invests in dairy co-operative to modernize equipment and help grow markets
- footnote[56] Back to paragraph A year of innovation in dairy drinks, 2021 - Mintel
- footnote[57] Back to paragraph A year of innovation in cheese, 2021 - Mintel