SUMMARY
The dairy processing industry is the third-largest food processing industry in Canada and the largest in Quebec. Canada’s Dairy processing industry is diverse and produces a large number of distinct products grouped under three broad categories: fluid milk and fluid milk products, cheese and cheese products and butter and dry and canned dairy products. Producers of these products includes small, medium and large processors located in both rural communities and large urban centers.
This report provides a summary of findings from the Dairy Processing Labour Market Study conducted for the Food Processing Skills Council (FPSC). The objective of this study is to provide evidence-based assessments of current and future employment, hiring requirements and labour market conditions for Canada’s dairy processing industry at national and regional levels. The information is meant to better inform government, employers and industry stakeholders about the degree and nature of labour market challenges faced by Canada’s Baked goods manufacturing industry.
- The dairy processing industry employed an estimated 24,928 people in 2021.
- According to 2021 Statistics Canada business directory data, there were 392 dairy processing establishments across Canada that had at least one employee.
- Overall, the Canadian dairy processing industry consists mostly of small-medium enterprises (SMEs) with only 2% of processors in the larger size range at 500 or more employees.
- Dairy processing establishments are concentrated in Quebec and Ontario, accounting for 71% of the establishments and approximately 75% of the workers in 2021
Between 2021 and 2030, the rate of employment growth for the Canadian dairy processing industry is expected to be approximately 11% growing from approximately 24,900 employees in 2021 to 27,600 by 2030.
As a result, the dairy processing industry will need to find an additional 9,300 new employees by 2030. This total demand will be 36% due to growth, and 64% due to replacements.
Labour market tightness is expected to persist through 2022 as economic recovery collides with reduced rates of labour force participation. This means that recruitment and retention will be particularly challenging for many occupations and roles through 2022.
Increased labour force participation is expected to ease recruitment challenges for several occupation groups by 2023, but then labour market tightness will return in 2028 onwards as labour force growth slows and there is increased competition from other industries.
By 2028, recruitment challenges will be most severe for occupations and roles related to:
- Management
- Logistics
- Some Technicians
- Drivers
Who will the dairy processing industry need to find?
On an annual basis, the industry will need to recruit
- 344 new managers, sales, logistics and admin staff
- 146 new entry-level labourers
- 244 skilled/semi-skilled operators and managers
- 146 trades people
Part 1
SECTOR
OVERVIEW
AND
CURRENT
CONTEXT
1.0 INTRODUCTION
Importance of LMI
Food Processing Skills Canada (FPSC) is pleased to present this report to the dairy processing industry, government decision makers and other industry stakeholders. This summary report focused specifically on the dairy processing industry is one in a series of labour market information (LMI) studies that have been designed to be a resource for all. The report covers details on the structure of the industry, current challenges and opportunities, and an overview of the important role of labour in ensuring the industry’s success now and in the future.
Accurate and timeline labour market information (LMI) has significant benefits for industry, decision-makers and stakeholders such as understanding the composition of the current workforce and determining estimates of future supply and demand to inform workforce planning. This report demonstrates that labour challenges and concerns are currently top of mind for the dairy processing industry. It outlines the evidence and storyline that estimates labour challenges increasing for many key occupations, particularly towards the end of the current decade.
Canadian dairy processors are the link between the farms and tables for a multitude of products. The structure of the industry is such that the vast majority of dairy products consumed by Canadians are produced by Canadian dairy processors, with limited imports Understanding the importance of the industry is relatively easy – understanding the challenges that the industry faces to have continued success and growth is more difficult. Understanding challenges using a solution-focused lens requires in-depth, detailed knowledge of the labour situation overall and by subsector within the industry. This LMI study provides an important step towards this more in-depth understanding.
Focusing specifically on the Canadian dairy processing industry, this study provides evidence-based assessments of current and future employment, hiring requirements and labour market conditions at national and regional levels. In addition, potential solutions and opportunities to address identified challenges are presented within the context of the overall Canadian food and beverage processing sector.
Canadian dairy processors are the link between the farms and tables for a multitude of products.
LMI REPORT SERIES OVERVIEW
This report on the Canadian dairy processing industry is one in a series of LMI reports produced by FPSC. In addition to this national summary report, FPSC has developed 11 brief region-specific reports that focus on LMI within ten areas in Canada with concentrated dairy processing employers. The recent LMI report on the overall Canadian food and beverage processing industry (At the Crossroad to Greatness, 2021) provides an excellent context for the current report. Even though the dairy processing industry is quite distinct as a sub-sector, there are some trends and insights from the overall report that could be equally applied to the dairy processing industry. Finally, there are other sub-sector specific LMI reports available that may be of interest in understanding the comparability of the dairy processing industry with other sub-sectors such as meat processing, fish & seafood processing, baking, and other food industry.
The 11 regional reports focus on the following geographic locations that have higher concentrations of processors and those employed by the dairy processing industry.
- Burnaby BC
- Kitchener ON
- Granby QC
- Calgary AB
- Toronto ON
- Quebec-Lévis QC
- Edmonton AB
- Belleville ON
- Halifax NS
- Winnipeg MB
- Montreal QC
METHODOLOGY
This report was developed using various data sources including both primary and secondary research to develop profiles of the Canadian dairy processing labour market and projections of labour demand and supply over the upcoming decade. Methods were specifically selected to complement one another in providing an understanding of the dairy processing labour market from multiple angles.
Key methods as outlined in the table included a national survey of dairy processors in 2020, extensive analysis of industry and workforce data from Statistics Canada (e.g., Labour Force Survey, Census), review and analysis of other sources of industry data (e.g., OECD, Industry Canada, Agriculture and Agri-Food Canada), scans of training and education programs, and interviews with industry associations and employers.
| Method | Objective | Approach |
|---|---|---|
| Review of Statistics Canada Reports and Data | Profile the industry, estimate current and potential future contribution to the economy, and project growth in production and employment. | In-depth analysis of most current and relevant labour market statistics and population data. |
| Review of other primary and secondary data sources | Complement the review and analysis of Statistics Canada data an to estimate potential labour demand and identify data gaps. Identify key industry trends of most relevance to the labour market. | Review and extract key data and information from the most relevant government, private and NGO reports (e.g., OECD, Industry Canada, Agriculture and Agri-Food Canada, Advisory Council for Economic Growth, FPSC) |
| Survey of Dairy Processors | Identify labour market challenges and related issues (e.g., HR challenges, retention and recruitment strategies) | 89 dairy processors were surveyed using online and telephone interviewing techniques. |
| Identification of Study Programs for Dairy Industry | Profile the range of programs available and to help identify potential gaps related to employer needs. | Scan of approximately [[XXX]] dairy-related programs and courses offered by Canadian post-secondary institutions, private career training organizations, industry associations and secondary vocational training. |
| Interviews and Consultations with Industry Stakeholders | To collect qualitative information, views and perspectives on key labour market challenges and solutions for the dairy processing industry. | Consultations and interviews conducted with provincial dairy processing associations, dairy processors, and other industry stakeholders |
2.0 SECTOR CONTEXT AND BACKGROUND
Sector Overview and Structure
Dairy manufacturing comprises companies or cooperatives that are primarily engaged in processing raw milk for beverage use, and manufacturing cream and other processed dairy products, such as butter cheese and ice cream. The industry also includes the production of dairy product substitutes (e.g., soy, almond, oat milk, etc. and their derived products). Although dairy processing is closely linked to raw milk production by dairy farmers, the dairy processing industry is defined according to when the raw milk arrives at a processing plant bay for unloading.
Dairy processing plants are generally located close to where farm milk production is concentrated: producers of fluid milk tend to be located on the fringe of urban areas to serve the consumer market, while manufacturers of products with a longer shelf life tend to be concentrated closer to the raw milk supply to keep costs low and a reliable access to their main input.
There is large diversity in the types of establishments observed in the industry, ranging from private companies to multinational conglomerates, dairy cooperatives and small companies with few employees.
Dairy Product Manufacturing (NAICS 3115)
Following the North American Industrial Classification System (NAICS) 2017, the sector includes:
- Milk processing (e.g., bottling, homogenizing, pasteurizing, vitaminizing), and manufacturing of non-alcoholic dairy products (e.g., eggnog), sour-cream and sourcream based dips, whipped toppings, yogurt, cottage cheese, and dairy substitutes.
- Manufacturing of butter, cheese, cheese-based products and dry and condensed dairy manufacturing (e.g., whey, dips, non-dairy creamers, mixes) including substitutes (e.g., almond milk, soymilk and derived products). Margarine and margarine-butter blends as well as cheese-based salad dressing manufacturing are excluded.
- Ice cream and frozen dessert manufacturing, including sorbets, frozen yogurt, frozen pops (e.g., flavoured ice, fruit, pudding and gelatin). It excludes manufacturing of frozen baking products. 10
The Canadian Other Food Processing Industry is largely composed of SMEs with fewer than 200 employees (98%)
The Canadian dairy industry is heavily regulated. Regulations include food safety requirements as well as a complex supply management system that establishes production quotas, controls pricing, and sets import tariffs.
Canadian Dairy Commission/Canadian Milk Supply Management Committee
- Determines the national milk quota on a monthly basis
- Determines support prices for butter fat and SMP annually
Provincial Marketing Milk Boards
- Receive a quota based on historical market shares
- Determine how much can be produced by an individual quota holder
- Have price-setting authority and collectively negotiated with dairy farmers and use support prices as reference
- Purchase all milk from dairy farmers and sell directly to processors
Dairy Farmers
- May purchase or sell individual production quotas at monthly auctions
- Sell product to provincial milk marketing board at a blended prices (determined within regional pools)
Dairy Processors
- Purchase inputs from the provincial marketing board
- Set prices of dairy products for distributors and retailers
Retailers
- Set the final retail price to consumers
Different Types of Milk Products
Milk products are generally divided according to fluid milk products and industrial milk products.
Fluid Milk – used for beverages such as milk (3.25%, 2%, 1%, skim), buttermilk, flavoured milk (chocolate and other flavours, and eggnog.
Industrial Milk – about 70% of milk production and is used in a product other than fluid milk. These can include:
- Cream products: light cream, half and half, table cream, whipping cream and sour cream
- Cheese products: cheddar, mozzarella, pizza and specialty cheese, cottage cheese.
- Butter
- Ice cream products: hard and soft ice cream, ice cream mix, sherbet, water ices, milkshake and other mixes.
- Milk powder products: skim milk powder, buttermilk powder, whey powder.
- Concentrated milk products: evaporated, condensed and other milk products
Cheese production in Canada exceeds 1,400 different kinds…
Cheeses are classified according to moisture content. Organized by their share of total production, these are:
- Firm cheese which is firm and elastic and represents 35% of production (50%-62% moisture)
- Soft cheese represents 26% of production (67%- 80% moisture)
- Semi-soft is generally soft and creamy and represents 22% of production (62%-67% moisture
- Fresh-cheese has a limited shelf-life and is consumed as soon as possible and represent 11% of production (80%+ moisture)
- Hard-cheese can aged and stored for several years and represents 4% of production (under 50% moisture level)
- Blue-veined cheese is commonly known as blue cheese and represents 4% of production
Voices of the Canadian Dairy Processing Industry
Key stakeholders in the Dairy Processing Industry are the national and regional industry associations. These organizations on behalf of their members consult, lobby and conduct research for the dairy processing industry in Canada:
- The Dairy Processors Association of Canada at the national level (http://www.dpac-atlc.ca/)
- The Western Dairy Council is a non-for-profit trade association representing dairy processors from British Columbia, Alberta, Saskatchewan and Manitoba. (https://www.westerndairycouncil.com/ )
- The Ontario Dairy Council (https://ontariodairies.ca/frameset/index.htm)
- The Conseil des industriels laitières du Québec Inc. (https://cilq.ca/)
- The Atlantic Dairy Council is the industry association for dairy processors in Nova Scotia, PEI, Newfoundland and New Brunswick (https://www.adcrecycles.com/about.htm)
Industry Research and Development
There are several research and development centers and programs funded by public and private sources, which aim to develop new and differentiated products to keep the dairy processing industry competitive. Several are linked to postsecondary institutions and work in multidisciplinary teams directly with industry.
3.0 CURRENT SECTOR PROFILE
Establishment Profile
How big is the Canadian Dairy Processing Industry?
According to 2021 Statistics Canada business directory data, there were 392 dairy processing establishments across Canada that had at least one employee. This count includes sole proprietors with at least one employee and micro-businesses (less than 10 employees) which combined make up 34% of these businesses. Overall, the Canadian dairy processing industry consists mostly of small-medium enterprises (SMEs) with only 2% of processors in the larger size range at 500 or more employees. The industry employed 24,928 workers in 2021
The Canadian Dairy Processing Industry is largely composed of SMEs with fewer than 500 employees (98%).
What is the composition of the “average” Canadian Dairy Processor?
The “average” composition of a dairy processor shows that the most employees are entry level labourers (on average 40.9) , and not surprisingly also represent the highest number of current vacancies and new hires. The next most numerous occupation group (on average 16.2) is among management, finance, sales and administration. Smaller averages are found for skilled/semi-skilled process control and machine operators (5.7), other occupations (4.3) and quality control, assurance.
The “average” composition of a dairy processor shows that the most employees are entry level labourers.
The Canadian dairy industry is heavily regulated. Regulations include food safety requirements as well as a complex supply management system that establishes production quotas, controls pricing, and sets import tariffs.
Where is the Canadian Dairy Processing Industry located?
Dairy processing establishments are concentrated in Quebec and Ontario, accounting for 71% of the establishments and approximately 75% of the workers in 2021. Dairy processing plants are generally located close to where farm milk production is concentrated: producers of fluid milk tend to be located on the fringe of urban areas to serve the consumer market, while manufacturers of products with a longer shelf life tend to be concentrated closer to the raw milk supply to keep costs low and a reliable access to their main input. Milk processing facilities also tend to follow population concentrations. The Canadian dairy processing industry is primarily concentrated in Ontario and Quebec, and the two Western provinces (BC and AB). Ontario, the most populous province, has 162 dairy processing facilities and approximately 9,600 employees in 2018. In Quebec, there are 201 dairy processing facilities with 9,100 employees, the province with the largest number of dairy farms.
Technology and Automation in the Dairy Processing Industry
Different technological advancements and innovations have been observed overtime as the dairy processing industry has evolved. The mechanization, automation and computerization of processes are observed primarily in large operations, while smaller producers may have slower rates of technology adoption due to costs and lack of economies of scale. Product innovation is at the heart of the industry, as it is a source of differentiation and increased competitiveness. For instance, membrane technology uses membrane filters of different structures at different pressures to separate milk components (e.g., whey proteins, lactose, minerals, bacteria and other organisms). This technology extends the product’s’ shelf life, standardizes its composition, minimizes waste while increasing yield and can be more energy efficient. Another example is a relatively newly developed procedure known as supercritical extraction that is able to remove cholesterol from milk fat, which leads to the development of low-cholesterol soft spread butter. Lab grown milk and dairy products, already being sold in the United States, may not currently be as attractive for Canadian consumers, but may gain popularity given their potential environmental benefits as the case for lab-grown proteins is built. Cheese, ice cream and frozen dessert technologies are also advancing, introducing new low fat or sugar free options, unique flavours, or increasing product homogeneity requiring less equipment to produce.
On the survey of employers, approximately one-half (52%) of dairy processors reported moderate to higher levels of investments in automation and digitization of production processes. Compared to the overall food and beverage processing sector, the dairy processing reports overall moderate levels of investment with lower proportions of high investments, but 92% making some investment vs. 83% of the overall sector.
Production Facilities and Outsourcing of Production
On the survey of employers, it was highlighted that processors focus primarily on internal production in their own facilities (85%), with very few outsourcing their production (2%), while some blended both internal and outsourcing of production (12%). This would indicate that the labour requirements and challenges related to production are for the most part being experienced directly by the producers within their own facilities compared with some other manufacturing sectors that see considerably higher rates of outsourcing.
Source: FPSC Survey of Employers 2020 (n=89)
(DATA LINK – SLIDE #5 – PRISM Dairy Survey Deck – July 2020)
OCCUPATIONS PROFILE
Key Occupations
Occupations in the dairy processing are quite diverse, including equipment operators, laboratory technicians, food scientists, tanker and other truck drivers, engineers, programmers, accountants, sales and marketing professionals, and policy analysts.
Using the National Occupation Classification (NOC) system, five key occupations are identified for the dairy processing industry which are also common to various sub-industries in the food and beverage processing sector:
- Labourers in food and beverage processing (NOC 9617)
- Process control and machine operators, food and beverage processing (NOC 9461)
- Testers and graders, food and beverage processing (NOC 9465)
- Supervisors, food and beverage processing (NOC 9213)
- Shippers and receivers (NOC 1521).
Other occupations that are relevant to the sector include:
- Dairy plant managers (NOC 0911 Manufacturing managers)
- Dairy chemist (NOC 2112 Chemists)
- Dairy bacteriologist or dairy scientist (2121 Biologists and related scientists)
- Dairy plant engineer (NOC 2148 Other professional engineers)
- Dairy products technicians or technologists (NOC 2221 biological technologists or technicians)
- Dairy equipment repairer (7311 construction millwrights and industrial mechanics).
| NOC Code | NOC code label | Common Job Titles in Dairy Processing |
|---|---|---|
| 9617 | Labourers, food and beverage processing |
|
| 9461 | Process control and machine operators, food and beverage processing |
|
| 9465 | Testers and graders, food and beverage processing |
|
| 9213 | Supervisors, food and beverage processing |
|
| 1521 | Shippers and receivers |
|
Levels of Diary Processing Occupations
Levels of Dairy Processing Occupations
There is room for a wide variety of skill levels and experience in the dairy processing industry. Skill levels range from foundational skill level dairy plant labourers who as entry level workers are not usually required to have specific experience or education, up to management and executive leadership roles that require specific experience and post-secondary requirements.
Career Pathways
A career ladder can be helpful to educate potential workers about the opportunities and career pathways within the dairy processing sector. The career ladder is a helpful tool for employers to attract, recruit and retain productive and skilled workers.
As the graphic illustrates, workers within High Skill Level occupations (such as Lead Hand) may move to the Quality Control/Quality Assurance Department and assume a role of Quality Control Inspector. This position is still a production/processing line position, but the Quality Control Inspector performs quality control tests and inspections on the processing line.
WORKFORCE PROFILE
Workforce by Occupation
One of the largest occupation groups in the dairy processing industry is management, finance, sales and administrative occupations (37%). A slightly smaller sized occupation group is skilled and semi-skilled workers (31%). Other sizeable occupation groups include trades (13%) and entry-level labourers (10%).
Dairy Processing Employment by Occupation Group
| Occupation Group | # Employed |
|---|---|
| Management, Finance, Sales, Admin | 9,190 |
| Skilled/Semi-Skilled | 7,615 |
| Trades | 3,757 |
| Entry-level Labourers | 2,457 |
| Product Development and QC | 1,391 |
| Other | 518 |
| Total | 24,928 |
Source: Statistics Canada, Census 2016
Management, finance, sales and administrative occupations (37%) are the largest occupation groups in the dairy processing industry.
Workforce Age & Gender Distribution
Overall, the dairy processing workforce according to 2016 data are relatively spread out across the working traditional working age groups of 25 to 64 years of age. Approximately one half of the workforce (47%) is aged 45 years or older, with the other one half under the age of 45 (53%).
Across age groups, the majority of workers are male with two-thirds overall (66%) of the workforce. In the youngest age group of 15-24 year olds there is a proportionally larger group of females (40%) compared with the other age groups.
Examining recruitment and retention according to gender may be worthwhile for dairy processors to consider as they face increasing challenges of meeting their workforce needs within a ever-tightening labour market.
Dairy Processing Workforce by Age and Gender (2021)
| Age Group | % Group | % Male | % Female |
|---|---|---|---|
| 15–24 | 13% | 60% | 40% |
| 25–34 | 18% | 67% | 33% |
| 35–44 | 22% | 65% | 35% |
| 45–54 | 25% | 68% | 32% |
| 55–64 | 20% | 69% | 31% |
| 65+ | 2% | 75% | 25% |
| OVERALL | 100% | 66% | 34% |
Source: Statistics Canada, Census 2016
Workforce Education Levels
The education credentials among the current workforce vary considerably within the industry and within occupation group. Entry-level labourers are the least likely to have post-secondary certificates or diplomas (30%), followed by those working in the skilled/semi-skilled occupation group (43%). Those in occupation groups such as product development and quality control have high rates of post-secondary certificates and diplomas (approximately 90%). Similar rates of post-secondary credentials are found among those working in management, finance, sales and administration (65%) and other occupations (63%).
Many positions within the dairy processing industry also require additional experience, certification and skills sets besides formal education credentials. For example, certain processor operations in the dairy sector require higher skills than other operating positions. In particular, occupations such as pasteurizer operators, CIP operators and raw milk receivers” require acute document use and numeracy skills; are required to communicate and collaborate with on-site inspectors; require enhanced thinking skills and perform more high-risk, critical operations in relation to HACCP and food safety.
Education Credentials by Occupation Type
(DATA LINK – SLIDE #15 – PRISM Dairy Outlook Deck – December 2021)
Workforce Diversity
When dairy processors were asked to describe their workforce, they reported on average 45% of paid positions were filled by women which is slightly higher than the overall sector average of 40%. Small proportions of paid positions were filled by recent immigrants (7%). Participation by Indigenous workers is relatively low in the industry at 1%. Persons with disabilites are noted as filling on average approximately 2% of paid positions.
On average, in 2019 how many paid positions were…?
Source: FPSC Survey of Employers 2020 (n=89)
(DATA LINK – SLIDE #7 – PRISM Dairy Survey Deck – July 2020))
Persons with disabilities are noted as filling on average approximately 2% of paid positions.
Part 2
UNDERSTANDING
DEMAND
* HOW MANY WORKERS DOES
THE SECTOR NEED?
4.0 OVERVIEW OF DEMAND DRIVERS FOR DAIR SECTOR
The demand drivers for the dairy processing sector are relatively complex and integrated with various factors. In attempting to understand and quantify demand estimates and projections, the study team examined numerous trends related to the key demand drivers outlined for the various industry components. The key areas of focus include:
The key areas of focus include:
- Consumption and related consumer preference trends
- Predictions and trends attributable to the various international trade agreements that implicate dairy processing
- Standard economic indicators such as GDP growth
- Population demographic trends of an aging population
- Industry output trends according to main product areas
Demand Drivers for the Dairy Processing Industry
CONSUMPTION AND CONSUMER PREFERENCE TRENDS
Overall Consumption Trends
Overall, the consumption of milk dairy products is on a downward trend when viewed from a historical perspective; however, this is not the case when examining specific product areas (for example fluid milk vs. variety cheese consumption). Reasons for the changes and trends in dairy product consumption are complex and likely due to multiple factors. Some potential contributing factors include:
- aging and more ethnically diverse population who are less likely to drink milk
- increase in dairy milk substitutes and dairy alternatives available to consumers, such as soy, oat and almond milks
- increase in people who are lactose intolerant or who have specific dietary preferences
| Dairy Product | Trend |
|---|---|
| Fluid Milk |
|
| Cream |
|
| Yogurt |
|
| Ice Cream |
|
| Cheddar Cheese |
|
| Variety Cheeses |
|
| Processed Cheese |
|
| Cottage Cheese |
|
TRADE TRENDS
Historical and Current Situation
In 2020, Canada exported dairy products valued at $486 million while importing products valued at $957 million resulting in a negative trade balance of approximately $471 million.
Canada’s dairy exports have increased significantly. Since 2015, the value of Canadian dairy exports has increased approximately 130%, while during this period imports have risen 5% shrinking the trade balance.
Canada’s main dairy exports are:
- Skim milk powder (37%)
- Other products (includes yogurts) (35%)
- Cheese (21%)
In 2021, Canada’s imports of cream and not concentrated milk from the US have significantly increased from previous years. As well, imports of cheese from various countries have increased as well.
Exports by Product in 2020
(DATA LINK – SLIDE #16 – PRISM Dairy Outlook Deck – December 2021)
Canadian Dairy Trade Balance
(DATA LINK – SLIDE #15 – PRISM Dairy Outlook Deck – December 2021
Impacts of Trade Agreements
Three trade agreements signed in recent years (CETA ,CPTPP, USMCA) provide foreign producers with increased access to the Canadian market. The impacts of the current trade agreements on the Canadian dairy processing industry are expected to have differential impacts depending on the products and countries of origin. Some forecasted impacts include:
- Increased EU access to Canada’s high value cheese market, potentially displacing some Canadian production. Cheese imports are expected to expand further in 2022. (CETA)
- In addition, Canada will continue to import over 20,400 metric tonnes of cheese predominantly from EU origins under a tariff rate quota established by the World Trade Organization(WTO) in 1994.
- Decline in the production and export of skim milk powder in 2021 primarily as a result of USMCA provisions that impose export surcharges on Canadian exports of skim milk powder and mild protein.
Trade Agreements
- Comprehensive Economic and Trade Agreement (CETA)
- Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)
- United States-Mexico-Canada Agreement (USMCA).
Canada will continue to import over 20,400 metric tonnes of cheese predominantly from EU origins under a tariff rate quota established by the World Trade Organization (WTO) in 1994.
ECONOMIC INDICATORS
Canadian provincial economic environments are a key determinant of provincial dairy product consumption. Due in part to supply management of Canada’s dairy sector, most dairy products consumed in Canada are produced domestically. Consumption of dairy products can be affected by fluctuations in economic conditions, through substitution between high and low-cost products (especially in the case of cheeses), or food products purchased outside the home.
Economic growth is also closely tied to population growth, which has a significant impact on consumption of food and dairy products. While natural population growth rate is declining for Canada with an aging population and a falling birth rate, with established immigration targets, the population of Canada is expected to increase by 9% between 2021 and 2030 to reach 41.8million.
National Real GDP Growth Forecast:
- Economy expected to rebound 5.7% in 2021, followed by 4.5% in 2022
- Annual growth rate averages 1.8% averages between 2023 and 2030
- Consumer price inflation (CPI) in Canada is anticipated to exceed 3.5% in 2021 before settling back to the Bank of Canada’s inflation target over the forecast horizon, averaging 2.1% through to 2023 to 2030 period. Rising cost of (Missing text.)
Gross Domestic Product Growth (2017 to 2030)
OUTPUT TRENDS
The projected value of output by product category was developed to factor in the various trends in economic and population growth, consumer consumption and preferences, and impacts from trade agreements.
Overall, following a decline in 2020, dairy sector output is estimated to rise 1.7% per year between 2021 and 2030.
Strongest annual average growth is expected in fluid milk and milk products of 2.5%, while growth in cheese and butter products is constrained to average around 1.2% due to the implementation of various trade agreements.
Out by Product, Canada (2010 to 2030)
(DATA LINK – SLIDE #16 – PRISM Dairy Outlook Deck – December 2021)
Dairy, Total Output
(DATA LINK – SLIDE #22 – PRISM Dairy Outlook Deck – December 2021)
5.0 SECTOR EMPLOYMENT OUTLOOK AND HIRING REQUIREMENTS
Employment Trends by Region Overall
Overall, dairy processing sector employment is projected to rise by 11% between 2021 and 2030. This would mean a rise from 24,928 jobs in 2021 to 27,585 in 2030, a difference of 2,657.
In terms of jobs to be created, the leading regions are those that are already have the largest dairy processing industries: Ontario and Quebec. Ontario is expected to add 1,120 jobs between 2021 and 2030 (up from 9,560), while Quebec is expected to add 786 jobs in the same period (up from 9,126).
In terms of relative employment growth in the dairy processing industry, Atlantic will be the fastest growing at 14% during this period, followed by Ontario with 12% growth. Quebec’s industry is expected to expand the most slowly with a predicted 9% growth between 2021 and 2030.
Dairy Processing Employment 2005-2030
EMPLOYMENT GROWTH BY OCCUPATION TYPE
Overall Dairy Processing Employment Changes
The trend in employment growth between 2021 and 2030 remains relatively consistent across occupational groupings. Relative proportions do not fluctuate significantly, with management-finance-sales-administration- jobs remaining the largest share, followed by skilled and semi-skilled jobs.
Change in Dairy Processing Employment by Occupation Type, 2021 to 2030
(DATA LINK – SLIDE #25 – PRISM Dairy Outlook Deck – December 2021)
Manage, Finance, Sales and Admin
The occupations in this group make up the largest proportion of jobs in the industry, and within this group, the sales jobs make up the largest proportion at 33%. Sales jobs are also expected to have the fastest growth rate within this group with 497 additional sales jobs created by 2030.
Entry-level Labourers
The labourer jobs are forecasted to have the largest growth with an increase of 26% or 645 jobs. It should be noted that this is largely the result of recovery and not due to longer-term growth trajectories for the occupation group. Many labourers were impacted by the COVID recession with total employment falling from 2,980 in 2019 to 2,255 in 2020.
Trades
Driver jobs are expected to grow from 1,077 jobs in 2021 to 1,152 in 2030, but the hiring challenges will be significant given the number of anticipated retirements in this field during this period.
| Occupation | 2021 | 2030 | % Change | Change |
|---|---|---|---|---|
| Management, Finance, Sales, and Administration | 9,190 | 10,279 | 11.9% | 1,089 |
| Management | 2,005 | 2,269 | 13.2% | 264 |
| Administrative | 2,176 | 2,296 | 5.5% | 120 |
| Sales | 3,040 | 3,538 | 16.4% | 497 |
| Logistics | 1,547 | 1,748 | 13.0% | 202 |
| Information Systems | 423 | 428 | 1.4% | 6 |
| Entry-level Labourers | 2,457 | 3,101 | 26.2% | 645 |
| Labourers | 2,457 | 3,101 | 26.2% | 645 |
| Other | 518 | 583 | 12.6% | 65 |
| All Other | 518 | 583 | 12.6% | 65 |
| Product Development and Quality Control | 1,391 | 1,529 | 10.0% | 139 |
| Technical Occupations in Physical Sciences | 1,031 | 1,095 | 6.2% | 64 |
| Technical Occupations in Life Sciences | 145 | 176 | 21.3% | 31 |
| Other Technical Occupations | 215 | 259 | 20.5% | 44 |
| Skilled/Semi-Skilled | 7,615 | 7,931 | 4.2% | 316 |
| Managers | 1,340 | 1,501 | 12.0% | 161 |
| Operators | 6,275 | 6,430 | 2.5% | 155 |
| Trades | 3,757 | 4,160 | 10.7% | 403 |
| Drivers | 1,077 | 1,152 | 6.9% | 75 |
| Material Handlers | 1,207 | 1,349 | 11.7% | 142 |
| Other Trades | 1,472 | 1,660 | 12.7% | 187 |
| Total | 24,928 | 27,585 | 10.7% | 2,657 |
(DATA LINK – SLIDE #35 – PRISM Dairy Outlook Deck – December 2021) 36
WORKFORCE HIRING REQUIREMENTS FOR THE DAIRY PROCESSING INDUSTRY
Over the 10 year period between 2008 and 2018, the dairy processing industry saw employment growth of approximately 8.5% or the addition of 1,900 employees. Between 2021 and 2030, the rate of employment growth is expected to be higher at approximately 11% growing from 25,000 employees in 2021 to 27,600 by 2030. This will require an additional 3,324 workers due to growth of the sector. However, the total demand for new employees during this time will be significantly larger due to the large number of replacement employees required for the sector as a result of retirements during this period (5,993 replacements needed). As a result, the dairy processing industry will need to find an additional 9,317 new employees by 2030. This total demand will be 36% due to growth, and 64% due to replacements.
Who will the dairy processing industry need to find?
On an annual basis, the industry will need to recruit:
- 344 new managers, sales, logistics and admin staff
- 146 new entry-level labourers
- 244 skilled/semi-skilled operators and managers
- 146 trades people
| Occupation Type | Employment 2021 | Employment 2030 | Total Growth | Annual Growth | Replacement Demand | Total Demand | Average Replacement Demand | Average Annual Demand |
|---|---|---|---|---|---|---|---|---|
| Management, Finance, Sales, and Administration | 9190 | 10279 | 1089 | 11.9% | 1634 | 2723 | 163 | 303 |
| Information Systems | 423 | 428 | 6 | 1.4% | 96 | 102 | 11 | 11 |
| Logistics | 1547 | 1748 | 201 | 13.0% | 435 | 636 | 48 | 71 |
| Sales | 3040 | 3538 | 497 | 16.4% | 658 | 1155 | 73 | 128 |
| Administrative | 2176 | 2296 | 120 | 5.5% | 708 | 828 | 79 | 92 |
| Management | 2005 | 2269 | 264 | 13.2% | 689 | 953 | 77 | 106 |
| Entry-level Labourers | 2457 | 3101 | 645 | 26.2% | 353 | 999 | 39 | 111 |
| Other | 518 | 583 | 65 | 12.6% | 258 | 323 | 29 | 36 |
| Product Development and Quality Control | 1391 | 1529 | 139 | 10.0% | 226 | 365 | 25 | 41 |
| Skilled/Semi-Skilled | 7615 | 7931 | 316 | 4.2% | 2045 | 2361 | 227 | 262 |
| Trades | 3757 | 4160 | 403 | 10.7% | 1036 | 1439 | 115 | 160 |
| Total | 24928 | 27585 | 2657 | 10.7% | 5940 | 8597 | 660 | 955 |
Source: Statistics Canada, Prism Economics and Analysis 2021
(PRISM Dairy Outlook updated file sent January 2023)
Part 3
UNDERSTANDING
WORKFORCE
SUPPLY
*Where will the workers come from?
6.0 Overview of Workforce Supply
CONSIDERATIONS IN IDENTIFYING SUPPLY SOURCES
Youth New Entrants
As the popultion of Canada ages, the overall proportion of labour supply that is made up of youth new entrants is expected to decline. Young people entering the Canadian workforce are expected to provide 68.1% of Ontario’s labour supply available to be hired by employers for new and replacement positions. A similar proportion (60.8%) is expected for Quebec, with much lower proportions anticipated for Atlantic (46.4%) and Western Canada (43.6%).
Dairy Processing Employment 2005-2030
Specifically for the dairy processing industry, the youth labour supply is expected to decrease in all regions between 2010 and 2030, with the largest drop occurring in Quebec going from approximately 500 in 2010, down to approximately 200 by 2030. Ontario is also expected to see a decrease in youth labour supply with a drop from approximately 350 in 2010, down to 225 by 2030. The dairy processing industry is likely going to have to continue to seek out and recruit from labour supply sources (e.g., immigration, other sectors) with less reliance on youth new entrants to meet labour demand.
Factors Impacting Labour Supply
In addition to understanding the fluctuating rate of youth new entrants on labour supply, there are other factors that can influence labour supply that can be characterized by sector. Some of these used to understand potential labour supply for the dairy processing include:
Unemployment Contraction: The potential labour supply can be impacted by contractions and expansions of unemployment rates. Contracting unemployment rates result in fewer job-seekers, and decreases in potential labour supply. Conversely, as unemployment rates increase, there are more job-seekers resulting in more individuals available to fill employment positions. Understanding unemployment fluctuation at the industry and regional level can inform important considerations regarding estimations of labour supply.
Labour Market Participation Adjustment: Similarly, labour market participation adjustments can impact labour supply. There are various reasons why individuals do not actively participate in the labour market such as raising a young family, caregiving for parents, attending school, retirement, or due to other personal contexts and situations. The labour market participation rate fluctuates according to various factors (e.g., population demographics, economic factors) and is an important consideration in understanding and predicting labour supply.
Other Sources of Supply: Another key consideration in understanding supply is identifying and quantifying potential o ther s ources o f w orkers. T hese c an f requently i nclude o verall immigration r ates, immigrant retention for specific regions, and potential employment fluctuations in similar sectors or occupations (e.g., other manufacturing sectors).
There are various reasons why individuals do not actively participate in the labour market such as raising a young family, caregiving for parents, attending school, retirement, or due to other personal contexts and situations.
Workforce Supply by Source for Other Food Processing Industry
The potential sources of labour supply for the dairy processing industry vary according to occupation groups between 2021 to 2030 to meet the projected overall demand for 9,316 workers. The largest source (65% or 6,012) is expected to be youth new entrants. Much smaller proportions will be derived from unemployment contraction (13% or 1,232) or other sources such as immigration (13% or 1,214). Labour market participation adjustment is expected to account for 9.2% of the labour market supply available to fill vacancies due to replacements or sector growth.
| Occupation Type | Youth New Entrants | Unemployment Contraction | Participation Adjustment | Other Sources | Total Supply |
|---|---|---|---|---|---|
| Management, Finance, Sales, and Administration | 2,281 | 475 | 244 | 439 | 3,438 |
| Management | 325 | 61 | 223 | 352 | 961 |
| Administrative | 408 | 103 | -66 | 266 | 712 |
| Sales | 1,128 | 215 | 131 | -328 | 1,147 |
| Logistics | 344 | 82 | -5 | 134 | 556 |
| Information Systems | 76 | 13 | -39 | 14 | 64 |
| Entry-level Labourers | 816 | 127 | 592 | -72 | 1,464 |
| Labourers | 816 | 127 | 592 | -72 | 1,464 |
| Other | 127 | 29 | 12 | 35 | 203 |
| All Other | 127 | 29 | 12 | 35 | 203 |
| Product Development and Quality Control | 303 | 71 | -86 | 22 | 310 |
| Technical Occupations in Physical Sciences | 225 | 51 | -88 | 4 | 193 |
| Technical Occupations in Life Sciences | 31 | 5 | 7 | 10 | 53 |
| Other Technical Occupations | 46 | 14 | -5 | 8 | 63 |
| Skilled/Semi-Skilled | 1,593 | 305 | -43 | 584 | 2,439 |
| Managers | 240 | 53 | -56 | 161 | 398 |
| Operators | 1,354 | 252 | 12 | 423 | 2,041 |
| Trades | 891 | 225 | 140 | 206 | 1,462 |
| Drivers | 209 | 80 | 108 | 367 | 764 |
| Material Handlers | 355 | 93 | 15 | 128 | 591 |
| Other Trades | 327 | 52 | 17 | -289 | 107 |
| Total | 6,012 | 1,232 | 859 | 1,214 | 9,316 |
The annual changes in the components of the labour supply for the dairy processing industry fluctuate from year to year. In 2020, labour force declined in reaction to a drop in employment. Labour force participation fell, unemployment rose, and a smaller number of new entrants and workers from other sources found work in the dairy processing industry. Across all years, the largest component of supply is from youth new entrants
Part 4
PUTTING IT ALL TOGETHER – LABOUR MARKET TIGHTNESS
7.0 Labour Market Tightness
LABOUR MARKET TIGHTNESS
Labour market tightness is a measure of the share of the annual supply change that occurs after accounting for available new entrants. Recruitment challenges increase as the proportion of workers need to be recruited from other industries, occupations and geographic regions rises. Recruitment challenges are exacerbated when tightness in other industries exceeds that of the dairy sector. The figure to the right shows the annual market tightness measure for the dairy manufacturing and all industries for Canada between 2012 and 2030.
The primary challenge in quantifying the supply of workers available to meet dairy processing industry demand is assessing the potential dairy processing labour force that would be recruited from other industries. This is especially difficult for production level workers with no specific tracked skills or qualifications to attach them to a specific sector other than experience. This makes it difficult to discern and measure any differences between worker availability and labour market conditions in one industry from another.
The method adopted in this analysis is to measure the annual hiring requirement for an occupation or trade, less the amount of new entrants available, as share of the labour force in the previous year. This assumes the recruitment challenges are greater in circumstances where relatively large numbers of workers are required in additional to the expected number of new entrants available. The analysis also considers the labour market tightness for the same occupation in all other industries. Recruitment challenges are expected to be greater when labour market tightness in other sectors exceeds that of those in the dairy sector.
Prior to 2020 and the onset of the COVID-19 pandemic, the dairy processing industry had experienced ups and downs in labour market tightness, with higher levels leading up to the pandemic onset. This would be reflected in employers likely experiencing greater challenges in recruiting for various positions. Post 2020 until 2024, the outlook for the industry labour market tightness will be lower compared to all other industries. As of 2025 the level of labour market tightness will be smilar to the the levels predicted overall for industry.
LABOUR MARKET TIGHTNESS BY OCCUPATION
Labour market tightness is expected to persist through 2022 as economic recovery collides with reduced rates of labour force participation. This means that recruitment and retention will be particularly challenging for many occupations and roles through 2022.
Increased labour force participation is expected to ease recruitment challenges for several occupation groups by 2023, but then labour market tightness will return in 2028 onwards as labour force growth slows and there is increased competition from other industries.
By 2028, recruitment challenges will be most severe for occupations and roles related to:
- Management
- Logistics
- Some Technicians
- Drivers
Reading the Rankings
Labour markets have tightened significantly in recent years and what were previously periodic recruitment challenges have now become permanent challenges faced by employers in all sectors of the economy. Given this reality, the ranks are intended to be interpreted in relation to recruitment and retention conditions experienced over the previous five years. The analysis of labour market tightness uses a relative ranking system:
Recruitment and retention will be particularly challenging for many occupations and roles through 2022.
Part 5
WORKING TOWARDS SOLUTIONS
8.0 Recruitment and Retention
CURRENT PRACTICES AND CHALLENGES
Business Challenges
The top business challenge for dairy processors in 2020 was identified as the availability of labour with over one-third (36%) identifying it as an “extreme challenge” and an additional one-quarter (25%) reporting labour availability as “somewhat” of a challenge.
This finding should be interpreted within the context of the labour market tightness projections which indicate that the challenges with recruitment and retention are expected to remain similar for the upcoming years for many occupations in the industry, with additional challenges and tightening occurring towards the end of the decade.
HR Challenges
The three top human resource challenges identified by dairy processors are a lack of qualified applicants, lack of applicants with proper training or certification, and applicants having high expectations for wages and compensation. These challenges are similar to those identified within other food processing sectors, and various other Canadian industries. Labour market tightness and labour supply being outstripped by demand contributes directly to challenges such as lack of applicants and high expectations regarding compensation. The challenge related to applicants not having proper training could be traced to the availability of appropriate and accessible training programs for the industry, and possibly the level of career awareness and perceptions of the dairy processing industry among new entrants and other sources of labour.
Labour market tightness and labour supply being outstripped by demand contributes directly to challenges such as lack of applicants and high expectations regarding compensation.
Workforce Availability & Recruitment Challenges
Highlighted as the top business challenge among dairy processors, workforce availability challenges are characterized as immediate and persisitent by approximately one-third (36%) of processors, with an additional quarter (27%) indicating the challeng is ongoing.
Recruitment challenges for most had remained similar in 2020 compared to 2019 (58%), but one-third (35%) reported that they had increased either “moderately” or “significantly” over the year.
Other Food Jobs most Difficult to Recruit
Dairy processors reported that the jobs most difficult to recruit for were within the production department (66% reported challenges) with most frequent challenges occuring in recruiting skilled and semi-skilled process control and machine operators (26%), production workers (17%) and entry level general labourers (17%). These findings match with the labour market tightness outlooks, particularly with respect to general labourer recruitment.
Dairy processors reported that the jobs most difficult to recruit for were within the production department.
Recruitment Efforts with Underrepresented Groups
Recruitment efforts among dairy processors indicated that particular efforts are being made to engage with and youth (58%), women (53%), workers over 50 years old (40%) and recent immigrants (36%).
Less frequently, dairy processors reported targeted efforts to engage with and potentially recruit among Indigenous groups (24%) or persons with disabilities (22%).
Given that these underrepresented groups are significant potential sources of labour within an increasingly tight labour market, dairy processors may need to consider further development and implementation of recruitment efforts that target and accommodate these groups in order to benefit more fully from from their participation in the industry.
IMMIGRATION PROGRAMS:
OPPORTUNITIES AND CHALLENGES
Dairy processors reported very similar rates of usage of immigration programs when compared with the overall food and beverage processing sector with 16% reporting that they used federal immigration programs such as the Temporary Foreign Workers Program (TFWP), and 11% reporting using provincial immigration programs such as the Provincial Nominee Program (PNP). Dairy processors reported that on average 7% of their workforce is composed of recent permanent immigrants (arrived within the past 5 years) compared with 9% among the overall food and beverage processing sector.
Given the anticipated continued increase in immigration to Canada, there may be additional opportunities for the dairy processing sector to take part in accessing this growing labour supply depending on skill requirements, workplace culture developments, and support systems established.
EMPLOYEE PAY AND BENEFITS
Wages and Salaries
Wage and salary information for the dairy processing industry is contingent on region, sub-industry, occupation, skills and experience levels. The diversity in occupations and skill/education requirements should be considered in analysing wage and salary rates for the industry.
Dairy processors responding to the survey of employers in 2020 indicated an average hourly starting wage of $16.10 for an entry level front-line worker ranging from $13/hour to $28/hour. T his is in alignment with ESDC published 2020 hourly wages for labourers in food and beverage processing (NOC 9617) which ranged from $14.25/hour to $19.25/hour depending on province, with an overall median of $15/hour.
Using somewhat dated median income data from the 2016 Census, the overall median income for the dairy processing industry is approximately $48,500, with median income related to education and gender.
- The median income for all workers regardless of their gender ranges from more than $37,600 for those employees with less than a high school education to approximately $62,700 for those workers with at least a bachelor’s degree.
- A gender gap in remuneration is observed for median income at all levels of education attainment. On average, women make 74 cents for each $1 that a male colleague makes.
2015 Median Income – NAICS 3115
| Level of education (highest diploma) |
Median Annual Income | ||
|---|---|---|---|
| Total | Male | Female | |
| OVERALL | $48,532 | $53,369 | $37,918 |
| No certificate, diploma or degree | $37,651 | $44,037 | $23,939 |
| Secondary (high) school or equivalent | $45,925 | $49,939 | $33,697 |
| Apprenticeship or trades certificate or diploma | $48,273 | $54,724 | $31,155 |
| College, CEGEP or other non-university certificate or diploma | $51,654 | $59,445 | $40,570 |
| University certificate or diploma below bachelor level | $57,872 | $63,854 | $52,906 |
| University certificate, diploma or degree at bachelor level or above | $62,733 | $68,461 | $55,991 |
Benefits
The dairy processors responding to the survey in 2020 noted a number of different benefits that they offered their employees. Almost all (97%) indicated that they offered an extended health of drug plan, while three-quarters (76%) reported providing paid days for sick or family leave. Slightly less than one-half (45%) reported RRSP matching or a pension plan. Approximately one-third (34%) provided tuition reimbursement for employees.
Benefits offered by large dairy processors
From a review of job postings and employment boards, some of the benefits that were noted as being offered by large dairy processors included:
- Bonus for evening and night shifts
- Health insurance coverage, including a health savings account, dental coverage, and employee assistance programs
- Defined pension benefit with employer contribution
- Sick days, short-term and long-term disability
- Annual bonus program opportunity based on salary grade
- Three-week vacation to start
- Tuition reimbursement
- Stock options
- Access to cafeteria and sports program during lunch hour
5 GENERATIONS IN THE WORKPLACE
FPSC conducted a study on career-related aspeications, expectations and preferences across five generations in the workplace. The key findings from this study can be applied to some of the potential solutions that the dairy processing industry is developing as it looks to address current and future challenges in with recruitment and retention in an increasingly tightening labour market
When developing solutions, keep in mind for everyone…
- Financial security and work-life balance are key goals for almost everyone.
- Workers of all ages want to continue to learn throughout their lives.
- Performance bonuses and health/dental coverage are attractive to everyone
- Most workers would actually prefer to remain with an organization for as long as possible – job hopping is not attractive for many
- Wages and benefits form only part of the overall attration – as important is to work for someone who is fair, open and transparent
- Workers want to be proud of where they work
- Workers want to understand key aspects of their workplace’s big picture and context
When developing solutions, keep in mind for younger workers, women, and new entrants to the labour market …
- They have higher expectations about what a job should provide them beyond a pay cheque.
- They want to make friends, have fun at work and have a supervisor who is friendly.
- They are keen to see how their work and the organization contributes to the greater good.
- A sense of belonging is important.
- They want more feedback about how they are doing and need more structure.
- Very attracted to health and wellness policies and programs
When developing solutions, keep in mind for Generation Z and Young Millenials…
- Advancement becomes more important, and they hope to see a path forward.
- They are particularly keen to learn new things.
- Performance bonuses and health/dental coverage are attractive to everyone.
PERCEPTIONS OF SECTOR
Recent studies by FPSC have highlighted the relatively low awarness of the food processing sector overall among Canadian. This contributes to the challenges processors are facing in recruitment and retention. A survey conducted in 2018 by FPSC found that only one in four Canadians reported being familiar with the food and beverage processing industry, and only one in six indicated that they would apply for a job in the industry if it was located near them.
Perceptions of the food processing sector tend to vary according to various factors which may be useful for dairy processors and the industry to consider as they attempt to develop and implement solutions to recruitment and retention challenges. Two groups that stood out in the analyses as being more attracted to employment opportunities in the sector are recent immigrants and Indigenous people. C urrently, the dairy processing industry employs slightly lower proportions of recent immigrants compared with the overall sector (7% vs. 9%) and is not a big user of immigration programming compared with some other food processing industries. Similarly, Indigenous people appear to be underrepresented in the dairy processing industry at 1% of the workforce on average across surveyed dairy processors.
Currently, the dairy processing industry of immigration programming compared with some other food processing industries.
EMPLOYER - LED TRAINING - OPPORTUNITIES AND CHALLENGES
Dairy processors report offering a wide variety of types of training to their employees with the most frequent being on-the-job training (92%), and in-house training (78%). On average, dairy processors reported allocating approximately $25,500 annually to training which results on average $330 per paid position.
One of the top HR challenges noted on the survey of employers for the dairy processing industry was a lack of applicants with the proper training and qualifications. While there are a limited number of dairy processing training programs in Canada, the requirements from employers appear to not being met with either the number and/or quality of graduates from these programs. Employer-led training is another option that appears to be filling the gap for some employers.
On average, dairy processors reported allocating approximately $25,500 annually to training.
9.0 Leveraging Canada’s Leadership In Education
EDUCATIONAL LANDSCAPE FOR THE SECTOR
The availability of training options for dairy processing, ice cream production, or cheese making in Canada is varied, with 33 courses or programs offered that specialize in these subjects as of 2020. Offerings consist of short courses or longer programs (generally no more than one-year). Continuing education courses may be taken individually or as part of a continuing education certificate program.
Training options are offered in three main subjects: cheese, dairy processing, and ice cream production. Making up over 70% of current training options, the focus on cheese instruction and cheese making is strong, including an introduction course on cheese, a course on cheese ageing, cheese-making workshops, and the professional fromager certificate. The emphasis on cheese is likely in response to the expected demand for cheese makers throughout the country and to increased interest in small batch artisanal cheese making.
Most training options are delivered through post-secondary education institutions. University programs, college certificate programs and continuing education require the participant be enrolled as a student. These programs would appeal to those interested in pursuing employment in the industry and who require technical skills to complete their job duties. Workshops and one-week training programs do not require enrollment as a student and may attract a wider range of participants: those working in the industry, those interested in the subject as a hobby or those involved in a small or medium-sized enterprise (SME).
Canadian Dairy Commission's Workforce Development Initiative
The Workforce Development Initiative (WDI) was launched in 2018 as a three-year, $5 million funding program that promoted training in the dairy industry, provided scholarships to study in relevant areas (e.g., dairy science and dairy policy), as well as provided support for program development. The WDI provided funding for three programs pertinent to education and training:
| Program Name: | Details: | Target Participant Group: |
|---|---|---|
| Scholarship Program | To encourage graduate studies in the fields of animal science, dairy science and policy and economics as they relate to dairy. | Graduate students |
| Career Promotion Program | Promotes careers in the dairy industry | Students and job seekers |
| Education Program | Creates full-time, government-certified programs to train qualified staff to work in dairy plants. | Students and job seekers |
| Continuing Education Program | Provides training and upgraded learning opportunities to those already working in the dairy industry. | Dairy industry workers |
The Education Program creates full-time, government-certified programs to train qualified staff to work in dairy plants.
10.0 At the Crossroad – Moving Forward Recommendations
The Canadian Dairy Processing Industry like other food processing sectors is at somewhat of a crossroad with respect to attracting sufficient numbers of qualified, skilled workers in the upcoming decade to meet the anticipated hiring requirements due not only to projected industry growth, but also the proportion of current workforce who are at or near the age of retirement. The following recommendations and considerations have been developed based on the results of this labour market information study, combined with overall trends, opportunities and challenges that the Canadian food processing industry is addressing more broadly in the upcoming decade.
Positively Shift Industry Perceptions
- Utilize research and insights from this report to support meaningful stories that promote careers and job opportunities in the dairy processing industry. This can help boost awareness of critical roles between dairy farmers (well publicized) and the role of processing.
- Showcase the dairy processing industry’s current good business practices including environmental programs and corporate social responsibility to engage iGen and young millennials.
- Leverage existing industry and career initiatives including Taste Your Future, Careers Now!, Frontline Food Facts, Feeding Your Future and AgCareers to attract underrepresented groups and inform job seekers.
Showcase the dairy processing industry’s current good business practices including environmental programs and corporate social responsibility.
Adapt Recruitment and Retention Strategies to the Workforce of the Future
- Dairy processors can update job postings and other outreach and recruitment activities to remove barriers and appeal to a diverse range of people. Job postings are also an excellent opportunity to highlight company values, contributions to community/country, the work environment and advancement possibilities.
- Strengthen connections with local educators, workforce planning boards and groups representing New Canadians and racialized individuals to share local employment opportunities.
- Work with local educational institutions to offer Work Integrated Learning opportunities to students, especially in the skilled trades, that provide job experiences and a bridge to future employment with local dairy processors.
- Commit to a workplace culture of the future that reflects openness, flexibility and diversity and empowers employees to make decisions.
Build and Grow Skills and Knowledge
- Ensure a commitment to continuous learning and upskilling and an environment where professional development and skilled employees are valued. Utilize existing industry and employer resources such as the Canadian Food Processors Institute and Food Skills Library to train people.
- Identify the sub-sectors or regions within the Canadian dairy processing industry that are not served by the current educational offerings and collaborate with educational and training institutions to determine how best to serve those populations.
- Pilot training and reskilling programs that are specific to future skills needs in the dairy processing industry.
- Align skills training with the industry’s skills gap to ensure the next generation of worker has every opportunity for success.
- Partner with industry and educators in further developing the Learning and Recognition Framework with new learning pathways and industry certifications.
- Provide supervisory training for those currently holding, or transitioning to, supervisory positions to support new and existing supervisors in achieving success.
- Ensure workers at all levels have access to Emotional Intelligence (EI) training to support more resilient and adaptable employees.
