Canadian Dairy Commission
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Newfoundland Joins National Dairy System

OTTAWA , August 2, 2001   The Canadian Dairy Commission (CDC) is pleased to announce that effective today, the province of Newfoundland is a member of Canada ''s national system for the marketing of industrial milk.

At its meeting last July 25-26, 2001 , members of the Canadian Milk Supply Management Committee unanimously reached an agreement with Newfoundland for the province''s entry into the National Milk Marketing Plan and the Comprehensive Agreement on Pooling of Milk Revenues. A new agreement, encompassing all 10 provinces and the CDC, will shortly be signed.

"I''m delighted that the negotiating team reached an agreement that accommodates all provinces. Now we have a truly national system," commented CDC Chairman Michel Pagé.

Due to its relatively low production of industrial milk, Newfoundland was not previously a member of the national system. However, there has always been a strong desire on the part of Newfoundland and the other nine provinces to work together in a truly national system. Newfoundland currently has close to 50 dairy producers who produced 34 million litres of milk in the year 2000 which was sold to two main processors. In recent months, Newfoundland has formalized discussions with the other provinces, and in collaboration with industry and government within the province, developed a strategic plan in anticipation of expansion and diversification. Through its strategic plan, Newfoundland hopes to double its production over the next 15 years and expand its processing capabilities in order to maximize utilization of its available industrial milk quota, or Market Sharing Quota.

The National Milk Marketing Plan, a federal-provincial agreement between provincial milk marketing boards/agencies and the Canadian Dairy Commission, governs milk supply management in Canada . The Canadian Milk Supply Management Committee, comprised of signatories to the National Milk Marketing Plan, oversees the administration and implementation of the Plan. Supply management has been in existence since April 1,1971 . The last two provinces to join the national system were New Brunswick and Nova Scotia on April 1, 1974 .

The Comprehensive Agreement on Pooling of Milk Revenues provides a means for market returns from the sale of milk to processors for special class purposes to be shared (or pooled) among all provincial signatories to the National Milk Marketing Plan.

The Canadian Dairy Commission, a federal Crown corporation created in 1966, advises the Minister of Agriculture and Agri-Food on matters related to the dairy industry. The CDC is a key facilitator within the Canadian dairy sector and helps initiate and administer policies and programs that meet dairy producer and processor needs, while ensuring that Canadian consumers are provided with adequate supplies of quality dairy products.

For further information, please contact:

Communications Services
Canadian Dairy Commission
Ottawa , Ontario
Canada K1A 0Z2
Tel.: (613) 792-2040
Fax: (613) 792-2009