CANADA’S $5 BILLION GOAT MILK SUPPLY PROBLEM: The industry has been in a tailspin since the U.S. announced it was phasing out the import of goat milk for human consumption.
The U.K., which is Canada’s biggest importer, stopped selling goat milk in June, but some countries are still importing goat milk.
The trend is expected to continue as countries including Australia and Italy continue to sell goat milk at inflated prices, said John Gillett, an analyst with Canadian Imperial Bank of Commerce.
“The industry is still in a very bad state,” he said.
Gilletts analysis found Canada’s milk market has been hit hardest by the U, U.J.S., and U.A.E. sanctions.
A global glut of goat and goat milk has been a key reason for price rises.
It has also been a boon for the industry’s expansion.
Canada’s goat milk is sold in more than 50 countries and in about 70 per cent of its major markets, according to data compiled by Bloomberg.
“There is a lot of demand, a lot more demand than there was before, and there is still a lot to be done,” Gillets said.
“And the problem is, there are still a number of countries that are still selling goat and other milk products to us.”
Goat milk is produced by cows that are milked on land that’s grazed by goats.
Gillest said the price of goat products in Canada has been dropping since mid-2016, but the drop is less dramatic than that of goat meat, which has been rising.
Goat milk prices have fallen about 30 per cent in the last year.
In the U., the average price of a gallon of goat is $2.35, up about 8 per cent from last year, according the World Bank, while the average cost of a liter of goat or sheep milk is $0.87, up 2 per cent, according data compiled in May by the Agriculture Department.