MRO: Compliance and Meeting Market Demands, Aided by Hygienic Design Solutions
The Canadian dairy sector was influenced by two major trends in 2020: The COVID-19 crisis and the Canada-U.S.-Mexico Trade Agreement (CUSMA).
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While the pandemic caused temporary production cuts, the CUSMA agreement improved market access and removed limits to exports of skim milk powder and infant formula. Ultimately, milk production in 2020 exceeded 2019, and the forecast for 2021 is that this upward trend will continue. The reasons for the rising milk revenues are due to the Canadian Dairy Commission announcing an increase in the butter support price, expected re-opening of food services as vaccines become freely available, and higher, more stable U.S. non-fat milk prices. Due to these three factors, revenues are expected to increase by $1.69 – $1.77 per hectolitre in the Canadian milk pools.
Driven by population increases, rising income levels, urbanization, and changes in dietary patterns – particularly in China and India where milk supply is not keeping pace with the growing demand – developing countries offer a compelling opportunity for North American dairy companies able to bridge the gap between supply and demand overseas. However, maximizing that opportunity will require change, including:
-Adoption of digital technologies for consumer engagement and product innovation;
-Greater use of advanced manufacturing processes and technologies;
-Increased shelf life of milk and related products; and,
-Compliance with international safety and cleanliness requirements and quality standards.