DAIRY FACTS
Dairy farming is an important agricultural sector in Newfoundland and Labrador, despite the province's relatively small agricultural footprint and challenging climate.
A Small Industry
With a Big Impact
Dairy is the largest agricultural commodity in the province and, together with chicken and egg production, accounts for the majority of farm cash receipts in Newfoundland and Labrador.
In 2025, provincial milk production was approximately 48.7 million litres, with a farm-gate value of about $54 million.
(from Budget 2026 https://www.gov.nl.ca/budget/2026/wp-content/uploads/sites/10/Budget-2026-The-Economy.pdf)
While the industry is small compared with major dairy-producing provinces such as Ontario or Quebec, it punches above its weight economically. Statistics Canada data show dairy farms generate the largest share of farm revenues in the province.
The Farmers
Newfoundland and Labrador's dairy farming industry has undergone the same consolidation seen across much of Canada:
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The number of dairy farms has declined over time
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Average herd sizes have increased
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Farms have become larger and more specialized
There are presently about two dozen dairy farms remaining in Newfoundland and Labrador, many operating at a larger scale than dairy farms elsewhere in Canada.
Most farms are family-owned and multi-generational. The industry frequently highlights that many producers are third-, fourth-, and even fifth-generation dairy farmers.
Unique Challenges
Newfoundland and Labrador's dairy farmers face several challenges that are less severe in mainland Canada:
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Limited farmland availability
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Rocky soils and a shorter growing season
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High transportation costs because feed, equipment, and many inputs must be shipped to the island
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Higher production costs relative to many mainland regions
As one Newfoundland producer explained in a recent industry profile, profitability often requires larger herds because operating costs are so high.
Local Milk Matters
One distinctive feature of the industry is its strong local focus. Newfoundland and Labrador produces enough fluid milk to meet local demand and has long emphasized buying local milk. Provincial regulations and supply management structures have historically supported local production.
In 2024, local dairy farmers took a major step by purchasing the province's only fluid milk processing plant and creating the Newfoundland and Labrador Dairy Co-operative. The co-op is owned by local dairy farmers and markets products under the Central Dairies brand.
Community & Economic Importance
For many rural communities in Newfoundland and Labrador, dairy farms provide:
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Stable year-round employment
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Local spending on feed, equipment, veterinary services, and transportation
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Stewardship of agricultural land
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A reliable local food supply
Because dairy operates under Canada's supply management system, dairy farms tend to provide more stable farm incomes than many other agricultural sectors, helping sustain rural communities over the long term.
What People Don't Realize
Many Newfoundlanders and Labradorians don't realize how local their milk supply is.
The Newfoundland and Labrador Dairy Co-operative's milk comes from local farms and that the processing company itself is owned by Newfoundland and Labrador dairy farmers.
The result is a relatively rare food system where the milk, the farms, and much of the processing infrastructure remain locally controlled.
Overall, Newfoundland and Labrador's dairy farmers are a small but highly productive group of family-run businesses that have adapted to a difficult environment while maintaining a locally focused milk industry that remains a cornerstone of provincial agriculture.
