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Dairy industry in Canada hit by the health conscious consumer

As a response to less sales of butter and cheese in Canada, Canadian Dairy Commission lowered the country's industrial milk quota by 1.7 percent//. This is due to raise in health conscious individuals.

Commission's senior director, Gilles Froment, said "It should start stabilizing over the next few months. Retail price increases over the past 18 months have finally been absorbed by the market. It means culling cows because we have too many cows in the system.”

The commission is government-owned and controls milk production to stabilize revenues and avoid surpluses. According to experts, “Between February 2005 and January 2006, butter consumption dropped 4.7 percent. This followed an average 0.3 percent decline over the previous four years.”

Speaking on the consumers side Patricia Jensen, Consumers Council of Canada board member said, "(Consumers) are concerned about the connection between cardiovascular disease and saturated fats, and the reported associations between some fats and cancers."

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