Monthly average retail prices for selected products, for Canada and provinces. Prices are presented for the current month and the previous four months. Prices are based on transaction data from Canadian retailers, and are presented in Canadian current dollars.

The average retail price for homogenized milk hit an all-time high with 6.53 Canadian dollars per four liters in February 2022 in Canada.

What is homogenized milk?

Homogenization is the process of breaking down the fat molecules within milk to ensure that they do not separate. This prevents the fat molecules rising to the top and creating a layer of cream, therefore creating a more consistent product with a longer shelf life. Homogenization generally occurs after pasteurization, which is a heating process to eliminate bacteria.

The Canadian milk market

The volume of milk produced in Canada has steadily risen year-on-year to reach approximately 93.24 million hectoliters in 2020. Quebec and Ontario are the provincial frontrunners in milk production, both producing over 30 million hectoliters in that year. Quebec and Ontario are also home to the largest number of certified organic milk producers in Canada.

This statistic shows the average retail price for 4 liters of partly skimmed milk in Canada from January 2016 to February 2022. The retail price stayed fairly constant for most of 2021, at around 5.5 Canadian dollars, but jumped up to 5.9 Canadian dollars in February 2022.

In 2021, the retail price of one liter of milk in Canada was on average 1.68 Canadian dollars, with some regional differences. For instance, in Quebec, one liter of milk cost 2.06 Canadian dollars on average, while it cost 1.56 Canadian dollars in Ontario.

Milk production in Canada

Canada featured among the leading producers of cow milk worldwide, with a production volume exceeding 10 million metric tons in 2021. Although this production volume pales in comparison to that of the EU-27 or the United States, Canada’s dairy farming industry is among the most important agricultural sectors in the country. Dairy farms in Canada were home to more than 990,000 milk cows in 2021. In addition to being the provinces with the largest number of milk cows in the country, Quebec and Ontario also produced the largest volume of milk in Canada in 2020, at around 33 million and 31 million hectoliters, respectively.

Milk consumption in Canada

Since 2004, consumption of milk per capita in Canada has been steadily declining, with a significant decrease of more than twenty liters per capita between 2004 and 2019. This can be attributed to the emergence of new consumption habits and the rise of non-dairy substitutes for milk such as soy milk, almond milk, coconut milk and others, which appeal primarily but not exclusively to people following plant-based diets. It was estimated that the milk substitute market in Canada would generate approximately 367 million U.S. dollars in revenues in 2022.

Milk rose to 18.77 USD/CWT on June 27, 2025, up 0.11% from the previous day. Over the past month, Milk's price has risen 0.91%, but it is still 5.82% lower than a year ago, according to trading on a contract for difference (CFD) that tracks the benchmark market for this commodity. Milk - values, historical data, forecasts and news - updated on June of 2025.

The consumption of milk has gradually declined in Canada in recent years – in 2022, consumption hit a new low of around 58.2 liters per capita. This is a decrease of over ten liters per capita since 2015. Around half of the volume of milk consumed per capita was milk with a two percent butterfat content, making it the most popular type of milk to drink in Canada.

Why is milk consumption decreasing?

Milk consumption is following a similar trend to red meat consumption in Canada - the intake of pork and beef have generally seen decreases in recent years. The number of vegetarians and vegans in Canada, recorded at 2.3 million and 850,000 respectively, is likely to be a reason behind the decline. The average retail price for homogenized milk has experienced only a minor increase in Canada, suggesting that price is not a cause of declining consumption.

Milk industry in Canada

Over 90 million hectoliters of milk are produced annually in Canada. As of December 2022, there were 76 milk manufacturing establishments located across Canada to support this production, with the majority located in Ontario and Quebec.