Industry Statistics and Trends
Market size and recent performance (2015-2030)
Industry revenue has grown at a CAGR of 1.2 % over the past five years, to reach an estimated $11.9bn in 2025.
Trends and Insights
Strong government support and supply management stabilize Canadian dairy farming
- The Canadian dairy sector continues to benefit from robust government support anchored in the national supply management system. This system regulates domestic milk production through strict quotas, enforces stable farmgate pricing based on producer costs, and imposes high tariffs on dairy imports exceeding agreed quota levels, shielding farmers from volatile world markets. In 2025, the federal government reaffirmed its commitment by passing legislation making it illegal to unilaterally lower tariffs or expand import quotas on dairy in future trade negotiations, locking in the supply management framework.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2025-2030)
Market size is projected to grow over the next five years.
Trends and Insights
Feed and input costs to rise through 2025, adding new pressures despite faster revenue growth
- After a sharp decline from historic highs in 2021 and 2022, Canadian dairy feed costs fell by over 12.3% in 2024, as reported by the Canadian Dairy Commission, aiding farm profit. However, forecasts from the Canadian Dairy Commission and Farm Credit Canada indicate these reliefs are temporary: grain and other feed input prices are expected to rise again through 2025 and beyond as global supply chains tighten and weather volatility, especially drought, remains a persistent risk. Other input categories, like energy, logistics and farm services, are also moving upward as inflation remains sticky.
Biggest companies in the Dairy Farms in Canada
| Company | Market Share (%)
2025 | Revenue
2025 | Profit
2025 | Profit Margin (%)
2025 |
|---|
There are no companies that hold a market share exceeding 5% in the Dairy Farms in Canada industry.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Fluid milk , Milk for industrial use and Other. Fluid milk is the largest segment of the Dairy Farms in Canada.
Trends and Insights
Industrial milk is the largest revenue source for dairy farmers
- Industrial milk is supplied as an ingredient for manufacturing dairy products like cheese, butter, yogurt, ice cream and milk powders. The segment has seen an 8.3% rise in sales and a 6% increase in physical volumes in 2025, according to Farm Credit Canada’s annual forecast.
- More insights available in the full report
Table of Contents
About this industry
Industry definition
The dairy farming industry in Canada includes raising and milking specialized dairy cattle to produce milk, which downstream dairy processors transform into fluid milk, cheese, butter and other dairy foods. Activities span animal care, feeding and milking.
What's included in this industry?
Products and services covered in the Dairy Farms industry in Canada include Fluid milk production, Industrial milk production, Production of non-dairy farm products and Agrotourism, equipment rental and other services.Companies
Companies covered in the Dairy Farms industry in Canada include .Purchase this report to view all major companies in this industry.
Related Terms
Related terms covered in the Dairy Farms industry in Canada include industrial milk, organic, raw milk and tariff rate quota.Industry Code
NAICS 112120 - Dairy Farms in Canada
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
The Canadian dairy sector benefits from strong government support and supply management. This system stabilizes farm income by regulating production quotas and prices, shield...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2015-2024) and forecast (2025-2030)
- Employees, including historical (2015-2024) and forecast (2025-2030)
- Businesses, including historical (2015-2024) and forecast (2025-2030)
- Profit, including historical (2015-2025)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Milk is primarily sold to downstream processors. These processors convert it into fluid milk for drinking or incorporate it into various diary products, ensuring that raw mil...
In this chapter
- Products & Services
- Major Markets
- International Trade
Key metrics
- Largest market segment and value in 2025
- Product innovation level
- Total imports, level and trend
- Total exports, level and trend
- Trade Balance
Charts
- Products & services segmentation in 2025
- Major market segmentation in 2025
- International trade, including imports by country and exports by country
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
- Recent trends in import and export volumes, country of origin or destination, and expected future trends
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Ontario is a leading province for dairy farming, benefitting from strategic market access and infrastructure. This location advantage supports both production and processing ...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each province
- Share of population compared to establishments in each region in 2025
Tables
- Number and share of establishments in each province in 2025
- Number and share of revenue each province accounts for in 2025
- Number and share of wages each province accounts for in 2025
- Number and share of employees in each province in 2025
Detailed analysis
- Geographic spread of the industry across North America, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Competition is low in Canada's dairy market. High tariffs and quotas enforced by provincial dairy boards shield Canadian dairy farms from significant competition. This protec...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2020-2025
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
There are no companies that hold a market share exceeding 5% in the Dairy Farms in Canada industry.
Analyst insights
Despite increasing industry consolidation, concentration remains low at the farm level. Market share is spread between many owner-operated, family-owned and regionally-connec...
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Government assistance is very high. Provincial governments have set up a quota and price management system restricting imports. This system tightly controls the import volume...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2015-2030)
- Assistance historical data and forecast (2015-2030)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Canadian dairy farms are more profitable than the average farm. Price controls and quotas safeguard dairy farmers from imports. These measures help maintain stable income lev...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2025
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2025
- Investment vs. share of economy
Data tables
- Liquidity Ratios (2018-2023)
- Coverage Ratios (2018-2023)
- Leverage Ratios (2018-2023)
- Operating Ratios (2018-2023)
- Assets (2018-2023)
- Liabilities (2018-2023)
- Cash Flow & Debt Service Ratios (2015-2030)
- Revenue per Employee (2015-2030)
- Revenue per Enterprise (2015-2030)
- Employees per Establishment (2015-2030)
- Employees per Enterprise (2015-2030)
- Average Wage (2015-2030)
- Wages/Revenue (2015-2030)
- Establishments per Enterprise (2015-2030)
- IVA/Revenue (2015-2030)
- Imports/Demand (2015-2030)
- Exports/Revenue (2015-2030)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2015-2030)
- IVA (2015-2030)
- Establishments (2015-2030)
- Enterprises (2015-2030)
- Employment (2015-2030)
- Exports (2015-2030)
- Imports (2015-2030)
- Wages (2015-2030)
Top Questions Answered
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Dairy Farms industry in Canada in 2025?
The market size of the Dairy Farms industry in Canada is $11.9bn in 2025.
How many businesses are there in the Dairy Farms industry in Canada in 2025?
There are 11,820 businesses in the Dairy Farms industry in Canada, which has declined at a CAGR of 1.3 % between 2020 and 2025.
How may import tariffs affect the Dairy Farms industry in Canada?
The Dairy Farms industry in Canada is unlikely to be materially impacted by import tariffs with imports accounting for a low share of industry revenue.
How may export tariffs affect the Dairy Farms industry in Canada?
The Dairy Farms industry in Canada is unlikely to be materially impacted by export tariffs with exports accounting for a low share of industry revenue.
Has the Dairy Farms industry in Canada grown or declined over the past 5 years?
The market size of the Dairy Farms industry in Canada has been growing at a CAGR of 1.2 % between 2020 and 2025.
What is the forecast growth of the Dairy Farms industry in Canada over the next 5 years?
Over the next five years, the Dairy Farms industry in Canada is expected to grow.
What does the Dairy Farms industry in Canada include?
Fluid milk production and Industrial milk production are part of the Dairy Farms industry in Canada.
How competitive is the Dairy Farms industry in Canada?
The level of competition is moderate and increasing in the Dairy Farms industry in Canada.
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in Canada include:
- Statistics Canada
- Industry Canada
- Canadian Business Patterns
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
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