Canadian Dairy Commission

[17][18][19]: 7 The price adjustment formula is based on the cost of milk production, as determined by a randomized and anonymous survey of roughly 200 farms.

[5] When production exceeds demand, the CDC oversees the removal from the market of surplus butter and skim milk powder for export or later sale.

[5] Sylvain Charlebois, professor of food distribution and policy and the director of the Agri-Food Analytics Lab at Dalhousie University, expressed concern that the CDC, "owned by all Canadians, is controlled by three people, all with dairy connections.

"[17] Perhaps in response to public pressure, in 2022 the CDC was more open when it made a thorough presentation and responded to media questions alongside its annual price hike announcement.

[28] Although Canadians pay high dairy prices, quality is not assured according to Dalhousie University professor Sylvain Charlebois.

He pointed to Buttergate which revealed the practice of feeding cows with palmatite, an imported palm oil derivative, which affects butter's hardness.

Howe Institute commentary said not only are such large price rises undesirable for consumers, but they could be detrimental to the dairy industry if they lead to more illegal milk entering the market from the United States.

)[17][11] As a consequence, newspaper columnist Andrew Coyne says CDC policy was enacted "in the name of saving the family farm" but it has instead "led to its near extinction.

[31][15] [32] Milk farmers are required to participate in the supply management price-fixing system, an arrangement that would be illegal in almost any other sector of the Canadian economy (the Competition Bureau in 2018 brought a case against retailers for fixing the price of bread).

[33][34]: 10 Also, the high cost has a disproportionate impact on low-income Canadians, since a greater proportion of their incomes are spent on dairy products.