Canada maintains a strategic national butter reserve at the Canadian Co-operative Dairy Commission (CDC), storing over 500,000 tonnes of butter to ensure availability during potential shortages. This reserve is kept in cold storage at -18°C (-25°F) and was established in the mid-1960s with a focus on stabilizing prices amid inflationary pressures.
Originally, the system aimed to protect Canadian farmers by preventing foreign competition through protectionist policies. However, this has led to disputes with trading partners like New Zealand and the U.S., who argue against Canada’s trade restrictions.
Despite these challenges, the reserve remains crucial for ensuring butter availability. For instance, Agropur Dairy Cooperative exports a significant portion of its spring butter to the reserve program, as weather fluctuations impact milk production. The CDC has faced criticism for its supply management approach, which includes limiting imports from certain countries.
This article highlights how such policies and storage mechanisms play into larger economic issues affecting Canada’s food supply chain.
