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TRANSCRIPT
JUN 9 1971
THE DAIRY INDUSTRY IN SASKATCHEWAN
A. Thesis
SUbmitted to the Faculty of Graduate Studies
in Partial Fulfilment of the Requirements
for the Degree of
Master of Science
in the Department of Geography
University of Saskatchewan
by
John Albert Handy
Orangeville, Ontario
February, 1971
The author claims copyright.Use shall not be made of thematerial contained hereinwithout proper acknowledgement, as indicated on the
following page.
528828
ACKl'DWLEDGillIJENTS
I wish to ackno\\fledge the assistance of lJIr. E. vJ-. Gabert,
Secretary-Treasurer of the Dairy and PoultIJ'~ Pool, fuskatoon,
for his assistance in developing understandings of the many
facets of the dairy industry, particularly in the Saskatoon area.
In addition, I wish to acknowledge the assistance given me by
many other people, agencies and goverrunent departments, too
numerous to mention individually, who contributed so freely of
their time and knowledge. I especially thank all the members
of the Geography Dep3.rtment, University of Saskatchewan, Saskatoon,
for their encouragement and help. In particular, I am indebted to
Dr. J. H. Richards, ¥~. E. N. Shannon and Dr. R. fl. Bone for their
guidance and criticisms.
Table of Contents
Page
Introduction 1
Chapter 1 - The History of the Dairy Industry to 1935: 6
Beginnings of Dairying in Saskatchewan ••••••••••••• 6
The History of Cheese ~~king in Saskatchewan •••••• 0 10
Butter Production Under Federal Control............ 11
The Dairy Industry Under Provincial Control........ 14
Perception of the Effects of the Physical Environment 16
Conclusion •••••••••••••••••••••••••••••••••••••••• 20
Chapter 2 - Factors Affecting the Economic Geography ofthe D:1iry Industry: 24
Effects of the Physical Environment on the DairyIndustry........................................... 26
The Development and Effects of Federal Dairy Policies 38
Federal RailvJay Policy and its Effects on wirying. 42
Effects of Provincial Jurisdiction on the DairyIndustry.......................................... 44
Conclusion •••••••••••••••••••••••••••••••••••••••• 53
Chapter 3 - Distribution Pattern in the Dairy Industry,1966. 54
Location of ~lilk Cows •••••••••••••••••••••••••••••• 55
Location of Milk Production •••••••••••••••••••••••• 55
Dairy Farms - T'neir L::>cation and Spe cialization •••• 55
Characteristics of Coramercial Dairy Farms •••••••••• 63
i
Pa.ge
Dairy Products Associa.ted with Non-Conuner cia1Farrns lO " • " • " " " " " " •••••• " • 68
Location of Vanufacturing Plants ••••••••••••••••• 72
The Sales Pattern •............................•.. 72
Conclusion •................ ~~ .................•. 78
Chapter 4 - The S9.skatoon lVlilk-Shed: 79
Geographical Extent and Character of the S3.skatoonMilk-Shed •••••••••••••••••••••••••••••••••••••••• 80
The Dairy Farmers ......••........•. ~ ....•....•.. 84
Transportation ••••••••••••••••••••••••••••••••••
Soils as a Factor Affecting the Distribution ofIvIilk Cows ••••••• " " f' .. • • • • • • • • • • • • •• 86
Processing and Distribution of Dairy Products inthe Saskatoon Shed ••••••••••••••••••••••••••••••• 89
utilization of Capital and labour in Dairy FarmOperations in the Saskatoon Shed ••••••••••••••••• 90
The Development of a l~rketing System in the SaskatoonMilk-Shed ••••••••••••••••••••••••••••••••••••••• 93
Conclusion ......................... " . 97
Chapter 5 - The Special Characteristics of the Dairy Industryin Saskatchewan: 99
The Position of the Saskatchewan Dairy Industry "" 99
Characteristics of Marketing and Production of Fluid]tlilk ••••••••••••• "• "••••••••• "••• " • "••••••• ".... '"' .. 101
The Nature of Small Producers •••••••••••••••••••• 109
Production and lVIarketing of lYJanufa ctured DairyProducts ••••••••••••••••••••••••••••••••••••••••• 110
Conclusion ••••••••••••••••••••••••••••••••••••••
ii
115
Chapter 6 - Future Problems and Policies Affectingthe Dairy Industry in Saskatchewan:
Effect of Substitutes on the Fluid ~lilk ~arket •••
rage
117
ll7
Preserlt and Proposed Policies Regarding CreamProduction •••••••••••••••••••••••••••••••••••••• 119
Conclusion ••••••••••••••••••••••••••••••••••••••
iii
l~
LIST OF TABL:E:3
Table Page
1. HilkCows on Saskatchewan Farms •••••••••••••••••••••••••• 1
2. Total Milk Production in Canada 1965 to 1968 ••••••••••••• 2
3. Total Value of Milk Produced in Canada 1965 to 1968 •••••• 3
4. Dai~ Cattle in Rupert's Land •••••••••••••••••••••••••••• 6
5. Growth of Dai~ing in Saskatchewan to 1921 ••••••••••••••• 7
6. Butter Production from 1906 to 1961 ••••••••••••••.•••••.• 14
7. Government Creameries from 1907 to 1917 •••••••••••••••••• 15
8. Number of Cows and Milk Produced for 1931 and 1936 ••••••• 20
9. Classification of Milk and Cream Producers in Saskatchewan1966 •••••••• '. • ••••••••• •• . • ••• •• . •••• . ••• . ••• . ••• . • •• • 25
10. Temperature and Precipitation Data ••••••••••••••••••••••• 27
li. Seasonal Water Requirements for Selected Fodder Crops •••• 29
12. Relationship of Irrigated Fodder and Presence of Milk Cowsin the Grassland Region 1961 ••••••••••..•••••••••••••• 31
13. Areal Concentration of Dairying in the Park Belt in 1966. 38
14. Butter Subsidy Policy 1961 to 1966 •••••••••••••••••.••••• 41
15. Creamery Butter Production in Saskatchewan from 1963 to1967 •-. • •••• •• •••• . ••••••• •••••• ••• •• •••• •••••• • . •• •. •• 42
16. Production and Consumption of Fluid Milk in Saskatchewanin 1967 •••••••••••••••••.••_........................... 45
17. Sales of Selected Dairy Products in Saskatchewan in 1967. 48
18. Changes in Market Size and Sales of Selected DairyProducts in Saskatchewan from 1961 to 1966 •••••••••••• 52
19. Total Value of Agricultural Products Sold in Saskatchewanin 1966 ••.••••••••••.•••••••••••••.•••••••••••••.••••• 60
iv
Table
20. Farm Classification in Saskatchewan 1966 . .Page
62
21. Specialization of Commercial Farms in Saskatchewan 1966 •• 62
22. Classification of Commercial Dairy Farms according toValue of All Products Sold 1966 ••••••••••••••••••••••• 63
23. Value of Dairy Products from Commercial Farms inSaskatchewan 1966 ••••••••••.••.••••••••••••••••••••••• 66
24 • Classification of Commercial Dairy Farms According toLand-size Groupings 1966 •••••••••••••••••••••••••••••• 67
25. (.Classifica.tion of Commercial Dairy Farms and Farms withMilking Machines according ... to Capital Value Groupings1966 •••••••••••••••••••••••••••••••••••••••••••••••••• 68
26. Farms with Dairy Sales 1966 •••••••••••••••••••••••••••••• 70
27. Value of Dairy Products Sold from Commercial and Non-Commercial Farms 1966 ••••••••••••••••••••••••••••••••• 70
28. Changes in Population of Baskatoon and in t he Number ofMilk Cows in the Saskatoon :Milk Shed 1931 to 1966 ••••• 82
29. Dairy Sales and Producers in Saskatoon Shed Compared withthe Province May 1966 ••••••••••••••••••••••••••••••••• 83
30. Location of Milk Cows and Soil Types in the Saskatoon Shed 86
31. Enployment in Saskatoon Dairy Plants 1968 •••••••••••••••• 90
32. Utilization of Resources on Dairy Fanns in the Saskatoonand Regina Sheds 1967 ••••••••••••••••••••••••••••••••• 91
33. Resource Utilization and Returns in Dairy Enterprises inthe Saskatoon and Regina Sheds 1967 ••••••••••••••••••• 92
34. Costs of Producing Milk in Saskatchewan 1967 ••••••••••••• 93
35. Creamery Butter IToduction in Saskatchewan 1951 to 1966 •• 101
36. Sale of Fluid Milk in Canada 1966 •••••••••••••••••••••••• 103
37. Farm Utilization of Fluid Milk 1966 •••••••••••••••••••••• 103
38. Population of Canada 1966 •••••••••••••••••••••••••••••••• 105
·39. Dairy Herd Improvement Associations in Saskatchewan 1967. 108
v.
Table Page
40. Classification of Fanas with Dairy Produce in Canada 1966 109
41. Consumption and Production of Selected Dairy Products inSaskatchewan 1967 ••••••••••••••••••••••••••••••••••••• 113
42. Exports and Imports of Selected Dairy Products Canada1967 •............•...................................... 113
43. Price Comparison of Fluid, Filled and Synthetic Milk 1967 118
44. Classification of Milk and Cream Producers in SaskatchewanAccording to Volume of Sales 1966 ••••••••••••••••••••• 120
45. Number of Milk Cows on Saskatchewan Fa.rms 1966 ••••••••••• 121
vi
LIST OF MAPS
Yap Page
1. Settlement of Saskatchewan ••••••••••••••••••••••••••••••• 8
2. Types of Farming ••• ~..................................... 9
3. Location of Creameries 1897 - 1905 ••••••••••••••••••••••• 13
4. Trends in Number of Cattle 1921 - 1966 ••••••••••••••••••• 21
5. Total Milk Production 1921 - 1966 ••••••••••••••••••.••••• 22
6. Statistical Divisions Grouped According to NaturalVegetation •••••••••••••••••••••••••••••••••••••••••••• 23
7. Distribution of Precipitation (Part A and B) ••••••••••••• 28
8. Conditions of Temperature (Part A and B) ••••••••••••••••• 30
9. Seasonal Distribution of Butter Production andPrecipitation 1967 •••••••••••••••••••••••••••••••••••• 33
10. Physical Conditions Affecting Dairying (Part A and B) •••• 36
11. Distribution of Milk Cows in Saskatchewan 1966 ••••••••••• 37
12. Production of Milk in 1967 in the Twelve Controlled Areas. 47
13. Development of All-Weather Roads 1946 - 1966 ••••••••••••• 50
14• Milk Cows Per Square Mile of Farmland 1966 ••••••••••••••• 56
15. Cows and Heifers as a Percentage of All Cattle by RuralMunicipalities - May 1966 ••••••••••••••••••••••••••••• 57
16. Gallons of Milk Produced Per 100 Acres of Improved Landby Rural Municipalities - May 1966 •••••••••••••••••••• 58
17. Farms with Sales of Dairy Prcducts as a Percentage of AllFarms by Rural Municipalities - 1966 •••••••••••••••••• 59
18. Average Sales of Dairy Products Per Producer for May 1966. 61
19. Distribution of Commercial Dairy Farms 1966 •••••••••••••• 64
Map Page
20. Urban Population of Saskatchewan 1966 in Centres of 2000and Over •••••••••••••••••••••••••••••••••••••••••••••• 65
21. Distribution of Milking Machines ••••••••••••••••••••••••• 69
22. Classification of Census Farms Saskatchewan 1966 ••••••••• 71
23. Location of Dairy Products Plants 1967 ••••••••••••••••••• 73
24. Milk Production Per Capita of Farm Population May 1966 ••• 75
25. Volume of Milk and Cream Sold Through Commercial ChannelsMay 1966 •••••••••••••••••••••••••••••••••••••••••••••• 76
26. Distribution of Swine 1966 ••••••••••••••••••••••••••••••• 77
27. Distribution of Fluid Milk Producers in the SaskatoonlJulk Shed ••••••••••••••••••••••••••••••••••••••• •'. • • • • 81
28. Major Roads in Saskatoon Area •••••••••••••••••••••••••••• 85
29. Soils of the Saskatoon Area •••••••••••••••••••••••••••••• 87
30. Value of Agricultural Products Sold in Canada 1966 ••••••• 100
31. Classification of Farms in Canada 1966 ••••••••••••••••••• III
32. Production and Utilization of Milk in Canada. 1967 •••••••• 112
33. Nwmber of Milk Cows Per Farm 1966 •••••••••••••••••••••••• 122
viii
LIST OF FIGURES
Figure
1. Seasonal Trends in Milk Production and Precipitation .....Page
35
2. Trends in Production and Utilization of Milk inSaskatchewan 1921 - 1966 •••••••••••••••••••••••••••••• 102
3. Milk Cows in Saskatchewan, Number and Character(Part A and B) •••••••••••••••••••••••••••••••••••••••• 106
4. Position of Dairying on Saskatchewan Farms (Part A and B). 107
5. Production and Consumption of All Milk Products in 1967 •• 114
-ix
LIST OF PHCYrOGRAPHS
Photograph Page
1. Dairy Facilities on the Haight Brothers'Farm at Floral.. 94
2. Dairy Facilities on the Alvin Miller Farm, R.R. 5Saskatoon ••••••••••••••••••••••••••••••••••••••••••••• 95
.x
LIST OF APPENDICES
Appendix Page
A. Dairy Survey of 31 School Districts - 1922-23 126
B. From the By-Laws Governing Patrons of Moose :MountainCheese Manufacturing Association •••••••••••••••••••••• 127
C. Federal Government Creameries in Saskatchewan 1897 - 1905. 128
D. Areal ~ent of a Controlled Area •••••••••••••••••••••••• 129
E. Producers with Mennonite Surnames in the Saskatoon Shed •• 130
F. Skim Milk Powder in Canada 1958 - 1967 ••••••••••••••••••• 131
G. Whole Milk Powder in Canada 1958 - 1967 •••••••••••••••••• 132
H. Creamery Butter Production 1906-1967 ••••••••••••••••••••• 133
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INTRODUCTION
In the one hundred years since the opening of the Northwest Ter-
ritories to settlement, considerable changes have occurred in land use
in this region. In Saskatchewan there developed a system of agriculture
which has stressed cereal production. Yet, almost from the time of
earliest settlement, milk cows have been associated with the farm econ-
~ (see Table 1). In the decades since 1931, there has been a gradual
TABLE 1
MILK CO\'>18 ON SASKATCHEWAN FARMS
Year
1881189119011911192119311941195119611966
No. of PJ.lk: Cows
3,84837,00356,440
181,168414,581480,286437,674306,896246,113153,819
No. of Farms with Cows
data not availabledata not availabledata not availabledata not available
97,27298,22897,68575,29649,22232,144
Note: Data for number of farms with milk cows is not available till1921
Source: D.B.S. for selected years
decline in both the number of milk cows and in the number of farms with
milk cows. Recently, between 1965 and 1968, there has been a decline
-2-
of 15.8% in total milk production in saskatchewan (see Table 2), and as
TABLE 2
TOTAL 1vIILK PRODUCTION IN CANADA 1965 to 1968(in thousands of pounds)
Province
lVlaritimesa
QuebecOntarioM3.nitoba.Sa. skatchewanAlbertaBritish Columbiacanada
1965
926,8116,064,6766,971,092
954,587953,595
1,641,221844,726
18,356,708
1968
828,8206,732,9336,641,173
857,392802,864
1,555,707916,325
18,335,214
Change
- 97,991+ 668,257- 329,919- 97,195- 150,731- 85,514+ 71,599- 21,494
PercentageChange
- 10.5+ 11.0- 4.7- 10.1- 15.8- 5.2+ 8.4- 0.1
Note: a~aritimes include N.B., N.S., P.E.I.
Source: D.B.B. Dairy Statistics 1968.
well, a reduction of 9.7% in the total value of milk produced in the
province (see Table 3, page 3). It is therefore apparent, in terms of
total volume and value of milk produced, that the dairy industry in
S:tskatchewan is declining at a rate in excess of any other province.
Most early settlers in Saskatchewan operated mixed farms and kept
a few milk cows. Surplus milk, butter or cream was sold providing
a small but important cash income. As land was improved and farm sizes
increased there has been a tendency for larger operators to specialize
in various types of grain or livestock. On farms of small to medium
size, the sale of dairy products is still an important part of the
over-al1 operation; indeed, the very existence of some small farms may
depend upon it.
-3-
The purpose of this study is to determine and explain the reasons
for the decline of the dairy industry in S3.skatchewan. The physica.l
envirorunent, historical, economic and political factors were believed
to be important in explaining its decline and were considered.
Information on the suitability of the physical environment was
obtained by examining publications on climate, soil and vegetation in
Saskatchewan and comParing the situation in Saskatchewan with major
dairy areas in eastern canada and western Europe.
Much information on the Past was obtained from the Archives in
fuska toon, especially from the Annual Reports of the DePartment of
Agriculture from 1898, from documents concerning early attempts of
production and marketing and from other maps and sources listed in the
bibliography.
TABLE 3
TOTAL VALUE OF HILK PRODUCED IN CANADA 1965 to 1968(in thousands of dollars)
Province
¥Ja.rit:i.mesa
QuebecOntariolv'.ia.nitoba.SaskatchewanAlbertaBritish ColumbiaCanada
1965
33,903212,478241,61529,47129,44851,17038,292
636,377
1968
34,791249,789265,69428,34026,57253,48247,805
706,473
Change
+ 888+ 37,311+ 24,079- 1,131- 2,876+ 2,312+ 9,513+ 70,096
PercentageChange
+ 2.6+ 17.5+ 9.9- 3.8- 9.7+ 4.5+ 24.8+ 11.0
Note: aMaritimes include N.B., 1'1.8., P.E.I.
Source: D.B.S. Dairy Statistics 1968.
-4-
An understanding of the economic and political factors affecting
the dairy industry in Saskatchewan was obtained from personal interviews.
Also of special help were replies to mailed questionaires from plant
managers and consumers across the province and correspondence from
various federal and provincial dePartments and agencies.
~aps showing the distribution of milk cows, milk and cream
production, dairy farms, dairy-products plants and a wide variety of
other phenomena related to dairying, were constructed from census data.
Data for areas smaller than those nornally published by the Dominion
Bureau of Statistics was obtained from the Livestock Section of the
Census of Agriculture, Ottawa. An attempt has' been ma.de to explain
the distribution Patterns in the light of the history of the dairy
industry and in relation to envirorunental, political and economic factors.
While the future of the industry will likely be affected by similar
characteristics, it was felt that there may be a danger that national
economic policies nay ignore a significantly important quality in farming
tradition. It was also believed that in Saskatchewan, milk production
is connnonly practised as a minor element with other farms of commercial
agriculture rather than as a specialized endeavour as is more cormnon
in other provinces. These latter were considered in evaluating national
dairy policies for this thinly populated province in which choice in
agricultural activity is somewhat restricted.
It is believed that in the foreseeable future, fluid milk pro
ducers in the vicinity of the large cities and within the Park Belt are
like~ to experience modest success. On the other hand the prospects
for cream production in Saskatchewan, treated as part of the operation
-5-
on grain farms and other farm types, are more tenuous; it is thought
however, that even though small, cream production may be a useful
component in the economy of some farms. In saskatchewan a special
case might also be made for the continuation of the small cream
producer to assist traditional farm operations.
-;i.6-
THE HISTORY OF THE DAIRY INDUSTRY TO 1935
The dairy industry in Saskatchewan has developed, fram its begin-
nings, in response to several factors including, fanning traditions,
government policies, changing methods of transportation, and under-
standing of the physical environment. Since these have influenced more
recent developments in the Saskatchewan dairy industry, a brief
historic background is provided as follows.
Beginnings of Dairying in Saskatchewan: While Rupert t s Land was ex-
elusively engaged in the fur trade, only a few milk cows were kept at
the trading posts for a local milk supply (see Table 4). However,
following upon the opening of settlement in the Northwest Territories
in 1870, agricultural activities expanded and the number of dairy cows
increased.
TABLE 4
DAmy CATTIE IN RUPERT I S LAND
Location
Moose FactoryYork FactoryRed RiverCumberland HouseRed River
Year
16631756181818251849
Number ofCows & Calves
uncertain1080
2 cows, 1 bull3,762
Source ofLivestock
BritainBritainU.S.A.Red RiverU.S.A. andnatural growth
Source: H. A. Innis, The Dairy Industry in Canada, Toronto: 1937,p. 4~18
-7-
The movement of both people and their cattle into the Prairies
was facilitated by the construction of the Canadian Pacific Railway in
1885. For the next two decades settlement was concentrated in south-
eastern Saskatchewan along the Canadian Pacific Railway as far as Moose
Jaw and also along the railways in the Prince Albert, Saskatoon and
Yorkton areas (see Map 1, page 8). In these newly settled areas,
pioneer far.mers, preoccupied with developing their new lands, generally
treated dairying as a sideline which was left mainly to the women of
the household.1 In spite of this" the number of milk cows and the pro
duction of butter increased quite rapidly in the early 1900's (see
Table 5). This increase in dairying was encouraged by: the develop-
ment of railways/ with an associated extension of settlement; the
development of mixed-farming, particularly in the Park Belt (see Map 2,
page 9), and the rapid increase in population in the province as a
TABLE 5
GROWTH OF DAIRYING IN SASKATCHE"wANTO .1921
Year Number Percentageof Cows Increase
Home Butter Percentage Population PercentageIncrease Increase
1881 3,848 510,191 27,6511891 37,003 851.6 1,897,432 271.9 66,799 141.61901 56,440 52.5 2,297,836 21.1 91,279 36.61911 181,168 221.0 12,053,201 424.5 492,432 428.51921 414,581 128.8 15,696,818 30.2 757,510 57.0
Note: Only the parts which became Saskatchewan in 1906 are includedafter 1891
Source: D.B.S. for selected years
IG. C. Church, "Dominion Government Aid to the Dairy Industry inWestern Canadau, Saskatchewan History, XVI (Spring 1963), p. 42
r
-8-
SETTLEMENT OF SASKATCHEWAN
Persons per sq. mi.in 190!1
II over 4
§ lto4
D unsettled
50""
in Miles
o 50 100wi Map 1
Sources:Atlas of Canada 1906Saskatchewan Archives
Map 28D.B.S. Statistical Atlas
1931, p. 81
-9-
TYPES OF FARMING
r • U r a niu m City
.8 u Lfa IoNa r row S
D nonfarming
wheat andgrazing
mixedfarming
.Weyburn Ij-------------l
in Miles50 0 50 100.. wi Map 2
Source:D.B.S. Statistical Atlas
1931
-10-
whole. As well, some immigrants undoubtedly brought with them some
knowledge of dairying from their homelands. In any case, a survey in
1922-23 of the quality of dairying in the Prince Albert area showed
that in thirty-one rural school districts nearby, many recent immi-
grants, Europeans especially, were handling dairy animals with some
efficiency as part of a mixed-farming operation (see Appendix A).
The History of Cheese Making in Saskatchevtan: The establishment of
cheese factories is evidence that milk production in the Territories
was increasing in the 1890's. The first was oPened in 1886 at Moose
Jaw by Edward Hopkins, one of a number of the early cheesemakers who
had come from Ontario. At Spring Creek, R. H. Phin, also from Ontario
and educated at the Guelph Agricultural College, operated a plant and
obtained the required milk by renting cows from nearby farmers. 2 In
spite of its early start, cheese manufacturing failed to become a
signific~nt part of the Saskatchewan dairy industry. Prior to 1905,
fourteen cheese factories had been established in the territory later
to become Saskatchewan, but they had all ceased to operate by 1906.3
This lack of success is partly explained by the fact that many
cheesemakers, familiar with conditions in Ontario, quickly became dis-
heartened by the difficulties of obtaining regular milk supplies in the
pioneer areas of Saskatchewan. The secretary of the Glen Adelaide
Cheese and Butter VJ.anufacturing Association stated. that: 1INothing
2personal Communication, dated Nov. 1, 1968, from :Mr. Geo. Phin,son of the man referred to above, indicated that his father's interesthad. later turned to the beef cattle industry.
3R• A. Innis, The Dairy Industry in Canada, (Toronto, 1937), p.53
-ll-
short of the total loss of the wheat crop will bring the farmers to
realize their short-sightedness in allowing concerns of this character
to fail for want of patronage tt •4 On the other side, farmers faced
fairly rigid quality requirements for milk entering the cheese trade
(see Appendix B); these undoubtedly required specialized attention and
time which most pioneer famers could scarcely afford. At the same
time, production of home butter was much less rigidly controlled and
therefore less time consuming. Moreover, butter making had the added
advantage of providing the farmer with skimmed milk which remained on
the farm to feed calves and pigs whereas whey, the by-product of cheese
manufacturing, had to be carted home from the cheese plant and was
useful only as pig feed. Thus, the production of butter suited well
the developing mixed-farming economy while the sale of whole milk for
cheese making required a more specialized dairy operation than was
common or acceptable.
Butter Production Under Federal Control: The Canadian Dairymen t s
Association was formed in 1889 with only one representative from the
North~est Territories.
ftOfficially, he probably represented a limited district aroundWolseley, where a cheese factory was contemplated but unofficially he was a symbol of the Territorial farmers who believed thatthe success of agriculture in the territ~ries depended upon theadoption of some form of mixed farming. tr
This Association was vocal and influential and in 1889 the Territorial
4Annual Report, Department of Agriculture of North-WestTerritories, (1898)
5G• C. Church, loc. cit.
-12-
Government decided upon a policy of aid to the dairy industry in the
North-West. Merchants supporting the Association wished to see the
quality of butter production standardized in factories. Evidence of
the need for this is provided by the following account by Joseph
Flavelle, a Winnipeg buyer of farm produce.
'!The butter was packed in any kind of package which was available to the farmer, in that, as yet, undeveloped country. Therailways were in the process of being built but standard fa.cilities including packages for butter were not available - hencethe shipment was packed in dishpans, nail kegs, wooden pails• • • in anyth~ whereby he could bring it to the local storekeeper •••• "
Shortly, the Federal Government provided financial assistance for
establishing creameries and the first of these was opened at Saltcoats
in 1890. Before others were bu.ilt, a plan for collecting and manu-
facturing cream in Western Canada was put forth by Mr. lin. Watson. His
proposal was to make maximum use of the railways, essentially by
locating the creamery at some central point to which cream could be
shipped. Thus, a few carefully-located plants would be assured of a
large quantity of cream and the economies of large scale production
would be realized.7 In 1893 the first of a number of such plants was
built at Moose Jaw; others followed (see Map 3, page 13), and in 1897
the Federal Government brought all the creameries of the territories
l.1llder its supervision. SUbsequently, farmers' support of these Federal
Creameries was less than had been anticipated and several creameries
closed (see Appendix C). Indeed, in spite of encouragement to do
otherwise, farmers persisted in making butter at home as a sideline
~.A. Innis, Ope cit., p. 36
7G• C. Church, Ope cit., p. 49-50
-13-
LOCATION OF CREAMERIES
1897 - 1905
in Miles
25 0 25 50, , , I Map.3;
Source:Annual Reports,for selected yearsDepartment of Agriculture.
Regina
-14-
to their more general farming operations and the total so produced
remained far greater for some time than the amount supplied by cream-
eries (see Table 6).
TABLE 6
BUTTER PRODUCTION FROM 1906 to 1961
Year
19061911192119.31194119511961
Creamery Butterin Poums
1.32,446596,228
6,6.38,8951.3,920,56128,306,81128,971,77228,011,6.31
Home Butterin Pounds
2,297,8.3612,053,20115,696,81820,97.3,76418,597,987
6,762,6502,767,008
Source: D.B.S. and Annual Report, Department of Agriculture, Regina,for selected years.
The Dairy Industry Under Provincial Control: In 1906, the newly
created Province of Saskatchewan assumed the responsibility for dairy
policy. It undertook to continue to promote improvement in quality of
cream and butter and to assist in marketing; furthermore, it agreed. to
pay express charges on cream shipped to the Government plant s • The
construction and location of new creameries was carefully supervised as
illustrated in the following report.
t~ring recent years there have been frequent enquiries re.advisability of establishing creameries away from the railwayline. •• .iVhile the erection of a creamery at a local pointmay reduce the difficulties and expenses of delivering cream tothe factory, the fact must not be overlooked that the difficulties and expenses of marketing the finished product are materiallyincreased when that product must be freighted a long distanceover country roads to the point of shipment; particularly in hotweather, such freighting may be detrimental to the quality of the
-15-
butter. Except in districts where intensive dairying is practised, it generally appears that the more profitable method ofmarketing cream is to collect it for manufacture at a centralpoint on thesrai1way line where cream from a large territory maybe secured. 1t
From 1907 to 1917, a constantly increasing number of farmers shipped
cream to the provincial creameries and new plant s were built to handle
the trade (see Table 7).
TABLE 7
GOVERNMEI\1T CREAMERIES FROM 1907 to 1917
Year
19071905190919101911191219131914191519161917
Number ofCreameries
55679
101214151719
Number of FarmersSending Cream
213553876 .
1,1661,5961,7552,6813,6255,9797,2058,100
Source: Annual Report , Department of Agriculture,Regina, 1917
Local Saskatchewan markets were strong because of the rapid in-
flow of population and at the same time a market developed in B~itish
Columbia because the latter's regular suppliers were filling Britain's
wartime butter requirements. New provincial creameries were added and
privately owned creameries entered the expanding butter trade. Bowing
to pressure from the private sector the government decided in 1917 to
8Annual Report, Department of Agriculture, Regina, (1919), p. 279
-16-
relinquish its direct control over creameries and encouraged the for-
mation of an independent company, the Saskatchewan Co-Qperative
Creameries Limited, with the understanding that some public financial
assistance would be continued. For the next decade, competition in-
creased and new plants were added almost indiscriminately, with small
regard for their economic viability as stated in the 1927 Report:
".Many of the creameries built in the last two years must certainly have been put up with the idea of preempting territory with aview to future development, rather than of serving the producersat the present tim9, or, anticipating profitable operation in theimmediate future. 1t
As a result of this over-expansion of plant facilities, and other re-
lated problems, the Saskatchewan Co-Qperative Creameries ,failed in 1931
and passed into receivership of the provincial government, the latter
having sustained a considerable loss while supporting this co-operative
effort. The Saskatchewan Government then assumed the task of bringing
plant facilities into balance with milk production on the one hand and
available markets on the other.
Perception of the Effects of the Physical Environment: Until the harsh
realities of the drought of the 1930's had been endur-ed, the effects of
the environment in Saskatchewan upon dairy farming had not been con-
sidered fully. However,. year by year, a growing body of first hand
experience, began to fashion what might be called an agricultural phi1-
osophy which in turn permeated individual and collective decisions and
policies which were shaping the industry.
9Annual Report, Department of Agriculture, Regina, (1927), p .15,16
-17-
Before 1900, there was opti.mistic speculation about the future of
dairying in. some parts of Saskatchewan. The Annual Report of 1898
stated: ft••• it would be hard to find anywhere in the world a better
dairying country than ••• parts of the Saskatchewan Valley and
settlers are rapidly turning their attention to the dairy industry~ ,,10
Similarly, without a long basis of experience or experimentation,
a body of opinion had developed in the West which held that mixed
farming was the answer to all of the real and imagined agricultural
problems, and policies of assistance to dairymen were enacted on this
premise. However in its formative years, the new Saskatchewan
Department of Agriculture under Mr. Motherwell indicated it was not
about to follow this approach. Its Report of 1907 stated:
''The alleged advantages of mixed fanning is an old story. Theyhave been talked about in the West for the last quarter of acentury by some who knew·much about it and by others who knewlittle. Much of this advice, however good it m.ay have been, orhowever well intended, has been comparatively ineffectual largelybecause it was often given indiscriminately and quite regardlessof the suitability of the particular locality for such a systemof farming. It would be as fitting to advise a farmer to go intowheat growing exclusively in districts preeminently adapted formixed farming as to advise that mixed farming with all that itusually implies should be made the mainstay in a fistrict that isparticularly adapted.to exclusive wheat growing. tt
Furthermore the new provincial dairy division displayed a growing
appreciation of both the physical and economic environment, and
encouraged dairying in selected areas. The 1909 Report stated:
''There is every reason to believe that a live interest can bedeveloped among our farmers with respect to this branch offarming; for an intelligent dairyman, who will conduct his workaccording to modern methods has opportunities almost unsurpassed.
10.Annu.al Report t Department of Agriculture of North-WestTerritories, (1898)
llAnnual Report, Department of Agriculture, (Regina, 1907), p.178
-18-
There are som.e districts especially adapted to raJ.smg livestockand these, generally speaking are included in the great Park Beltor semi-wooded. area north of the Yorkton branch of C.P .R. andm.ain C.N.R. line. Here the land is less easily broken up and thetemptation to risk all in a wheat crop is thereby somewhatreduced. Large numbers of cattle are raised in this wooded beltwhich runs in a north-westerly direction across the province and12varies from seventy-five to a hundred and fifty miles in width."
Over the next decade, under Motherwellts direction, the
Department ac~ired a greater insight into problems inherent in farming
generally and in dairy farming specifically. In one of his last
speeches as Minister of Agriculture in 1919, Mr. Motherwell described
same of the difficulties confronting the industry and attempted to set
out new goals.
ftDairying is the slowest and most difficult branch of agricultureto develop • • • it is not expected that success in dairying willbe attained in all parts of the province. There are districtswhere grass is scarce, where water is scarce and districts wherethe disposition to enter the dairy industry is scarcer still.But where nature is kind, where there is a sufficiency of feedand good water, there is a great future for dairying inSaskatchewan. ••• Dairying has been principally a side line a few cows milked in the summer time and dry in the winter timeand this has been the type of dairying in many districts and overthe entire province until quite recently. The time hasnow come when we must develop the different districts of theprovince along the lines for which they are best suited and wheredairying mUi~ be taken up as a special branch of farming not as aside line. 1I
Shortly thereafter, the problem of drought began to be experienced
in the south-west region of the province. Successively poorer crops
had been harvested since 1917 and a Royal Commission was established in
1921 to investigate the causes of the economic ills of the area and to
make suggestions. Regarding the dairy industry it stated:
12 )Annual Report, Department of Agriculture, (Regina, 1909 , p.48
13Annual Report, Department of Agriculture, (Regina, 1919j,~ p.279
-19-
"The advantages of dairying have never been better demonstratedthan during the past three years when crops were poor and theincome from grain growing slim and uncertain. During the1919-20 season the creameries at Swift Current and Maple Greekhave paid to farmers in the surrounding area $225,000 cash forcream. These men who have a few milch cows ••• were immeasurablY better off than those who had none of these to bring in alittle money regularly to provide groceries and living necessities. ••• The kinds of livestock to be kept on a dry farmwill naturally vary. Without question, cows should be included.A few good milk cows add greatly to a farmer' s independence whencrops are poor and should be a prominent and ,permanent feature ofevery farm in districts where crops are uncertain. Thesize of farms in the South-West will have to be substantiallylarger than a half section in order to provide facilities forgrazing. Large public pastures were suggested so that thefarmer might conserve the home pasture for the work animals andmilk cows by sending the other stock to the community pastures.• •• The fundamental principle underlying the whole system isthe division of risk, provision of a large part of the foodsu.pplies on the farm itself, thus insuring a degree of independn.ence not possible from either grain farming or ranching alone. tt
These recommendations regarding diversification, although designed
specifically for the south-west region, an area of special agricultural
difficulties, indicated that farmers were searching for ways to cope
with problems of the physical environment in Saskatchewan and many
thought that small dairy herds as part of the farm cycle could assist
in this. As the drought worsened in the 1930's, 1600 families were
given assistance in m,oving from south-western~.Saskatchewan to new
homesteads in the more humid Park Belt. Free freight was provided for
the movement of cattle; and for families without a cow there was a
$20 allowance for the purchase of same.15
In the period. 1931 tQ 1936, there had been a substantial increase
throughout Saskatchewan in the number of milk cows and in the total
=~:::;..£-::::.;;,;:....:..:;.:.=~~~=:.::.::=;;;:;....:;:;......=;=-=S:.=:o.::u:.=th::.-WI...:.::.;:e:.:s::..:;.t,Report of
p.Colonization of Western Canada, (London, 1936),
-20-
volume of milk produced (see Table 8). The increases, both in the
TABLE 8
~1llJ1BER OF COWSAATD MILK PRODUCED FOR 1931 Al\l1> 1936
Number of Cows
Pounds of lfilk
1931
480,286
1,314,441,912
1936
564,831
1,823,377,913
Increase
84,545
508,936,001
Source: D.B.S. for selected years
number of milk cows (see l~p 4, page 21), and in milk production (see
Map 5, page 22), were greatest in Census Divisions 5, 9, 10, 14, 15, 16,
17, 18 which are located in the Park Belt (see Map 6, page 23).
Conclusion: By 1936, the dairy industr~'- was an established part of the
Saskatchewan fann economy. First hand experience 'With land and climate
had brought about adjustments in location in the dairy industry which
indicated a better understanding of the environment. Agricultural
~llnister Motherwell and others had fostered policies designed to
promote the industry where its success seemed reasonably assured.
Production facilities, having experienced an erratic growth period,
were being rationalized and modernized under the guidance of the
Provincial Government and most of the farm areas had been settIed and
were readily accessible by rail. The developmental stage, now com
pleted, had revealed much that could be beneficially employed in the
future concerning both dairy farming and the manufacturing aspects of
milk products.
-21-
Ifbi]12
8
'I
1.1 :51.,51 ,,"
Source:1966 DataD.B .3. • Divisionsfor Census
Map 4 and other years
IN NUMBER OF CATTLE
1921 - 1966
16~16~ 1%n t
, ~
. " .. " ...."II 8' ., 41 " 6.
TRENDS
8
4
in Miles25 50
! Io
-'
-22-
TOTAL MILK PRODUCTION
1921 - 1966
Note:Vertical scale showsmillions of poundsof milk.
4
17
80
(,0
-----L-l--.18~- ~-------t=~;:;;_
Scale in Miles
25 0 25 50.Iw-=:JI-=:lwl-===:::I'==::::;ll
Map 5
Source:D.B.S 1921-66 Datafor Census Divisions
-23-
STATISTICAL DIVISIONS
GROUPED ACCORDING TO
NATURAL VEGETATION
Park Belt
Tall Grass
Steppe Grass
-
in Miles25 0 25 50
,..,.
41IK+-+--1H-+++-t-HI-ti-++-H-H 1i3n"l-+-+-t~t-t--t- ~
Map 6
Source:RoyalCammissionon Rural Life,Regina, 1957
-24-
CHAPrER 2
FACTORS AFFECTING TEE ECONO¥!IC GEOGRAPHY OF THE DAIRY INDUSTRY
In this chapter the interrelated factors which presently affect
the economic conditions and location of dairy farming in Saskatchewan
will be examined. Specifically, the chapter will deal with those
physical conditions, government policies, transportation factors and
markets which have contributed to the current distribution patterns.
The origin of some current trends in the dairy indus try arose
during the 1930's. Special problems of the decade, drought and
depression brought forth responses which, while intended as only
temporary measures at the time, marked the beginnings of practises that
have continued into the present. In addition, the period of trial and
error and some experiment within an essentially unknown geographical
environment gradually evolved during the decade into an era of adjust
ment and readjustment to conditions of both the physical and economic
environment as they were perceived in new and often different contexts.
In order to understand same of the factors, especially those
related to marketing and government policy to be discussed later in this
chapter, it is necessary to differentiate between two classes of com
mercial dairy farmers. Those who sell fresh whole milk or cream to
dairies for direct human consumption are referred to as Class 1 or
fluid milk producers; those who sell their milk or cream to manufac
turers of butter, cheese, powdered or condensed milk and other
-25-
processed items are Glass 2 or manufacturing~1kproducers.16 While
these terms will be nsed here it is noted that in Saskatchewan, the
Class 2 producers are mainly small cream shippers (see Table 9).
TABLE 9
CLASSIFICATION OF fiIILK AND CREM-i PRODUCERS IN SASKATCHEWAN 1966
Size of Producerin pounds
0-47,999 Ibs48,000-95,999 Ibs96,000 +
Total
Class 1
No. ofFluidShippers
1959
363
441
No. ofCreamShippers
21,8331,385
185
23,453
Class 2
No. ofManufacturingYdlk Shippers
741
12
Total
21,9091,448
549
23,906
Source: William Mackenzie, The Canadian Dairy Industry, ARDA ProjectNo. 15033, (August, 1967) p. 36
The two classes of dairying differ considerably. Production
costs of Class 1 milk are high, relative to Class 2, because special
sanitary regulations must be satisfied by qualifYing producers. These
regulations demand special buildings and facilities that add greatly to
the costs of production. At the same time preferential prices are
awarded such producers so that, currently in the Saskatoon area Class 1
milk brings the farmer an average of $6.05 per cwt. while Class 2 milk
is worth $3.50 per cwt.
lbmward Higbee, American Agriculture, (Toronto, 1958), p.257-260
-26-
Because it is bulky and therefore costly to transport and because
it is high1)" perishable and must reach the market in a fresh conditien,
fluid milk is generally produc ed in a limit ed area near urban centres.
On the other hand, manufacturers of butter are less insistent upon the
freshness of cream intended for churning into butter and as well the
volume of cream. is much less than fluid milk as a result of separating
the cream from the whole milk at the farm. Consequently, cream. can be
shipped economically from a much wider area.
Effects of the Physical Environment on the Dairy Industry: The
generaJ.;Ly accepted ideal condition for dairying is stated by Ellsworth
Huntington as follows: "The ganeral optimum for dairy cattle of
European type includes fairly cool moist summers and mild winters with
so little frost and such adundant rain that grass is green at all
seasons."l?
.An examination of the data in Table 10, (page 27) reveals that
the cold winter temperatures and scant ann.a! precipitation of
Saskatchewan are two factors of climate that are somewhat less than
ideal for dairying when compared with Western Europe. However the
detrimental effect of cold winters are reduced by providing adequate
stabling which consequently raises the cost of dairying in Saskatchewan.
Although the precipitation is generally low, it is of maximum benefit
because over sixty per cent comes in the summer growing season; there-
fore a good forage management programme can at least produce a good
store of forage against the lORg winter season when natural grazing is
17E11sworth Huntington, Principles of Economic Geography,(New York, 1940)" p. 191
-27-
impossible.
TABLE 10
TEMPERATURE AND PRECIPITATION DATA
Station Jan.Temp.
JulyTemp.
AnnualTemp.Range
AnnualPrecipitation
Inchesin
SummerMaySept.
%SutmnerPrecipitation
56.7"
13.6"13.8lf16.3 If
8.3" 61%9.1 u 66%
10.211 63%
Note: aValencia is representative of western Europe.
~ple Creek is representative of the grassland region of southwest Saskatchewan.
cSaskatoon is representative of the transitional area betweengrassland and Park Belt.
dNipawin is representative of the Park Belt of Saskatchewan.
Source: ricultural Climate of Saskatchewan, Climatological Studies10, Toronto, 1967 , p. 3, 9.
A comparison of Map 7A (page 28) with Table 11 (page 29) in-
dicates that the average annual precipitation is less than the average
water use for max:imum development of alfalfa and grasses. A. W. Currie
has summarized a number of factors which illustrate the difficulties
facing Saskatchewan dairy farmers in producing fodder:
"Nature has not provided large sections of the West with enoughrainfall to support a prosperous dairy industry. It is hard toobtain good summer pasture. The quality of native hay and theoriginal grass cover is poor for dairy cattle, though satisfactory for beef. In any event, native hay is nearly gone
in Mileso 100I
in Mileso 100, ,
-28-
DISTRIBUTION OF PRECIPITATION
AVERAGE ANNUAL PRECIPITATION IN INCHES
Map 7A
AVERAGE SUMMER PRECIPITATION IN INCHES(May to September)
Hap 7B
Source:The Climatesof Canada forAgriculture1967, Fig. 15
Source:AgriculturalClimate ofSaskatchewanToronto 1967 p.6
-29-
because land can be used more profitably for other crops. •••Cultivated grasses such as hay, clover, timothy do well in wetyears but it is hard to get them properly started, i.e. get agood 'catch' in seasons with average or less than average rainfall. Alfalfa has proved satisfactory because it provides a goodtonnage of appetizing feed per acre. Once a good catch ofalfalfa is obtained, the farmer is likely to keep ~f} using it forpasture as long as it produces any fodder at all."
On the other hand, oats, requiring less water and a shorter growing
season than alfalfa or grasses (see Table ll) is widely used as fodder
in Saskatchewan. The distribution of corn, which requires even less
TABIE II
SEASONAL WATER REQUIREMENTS FOR SEIECTED FODDER CROPS
Crop Type
AlfalfaGrassOatsField Corn
AverageWater Use
(inches)
25241615
Length ofGrowing Season
(days)
155150
95100
Source: Climatological Studies
moisture, is restricted by its heat requirements; however the newer
strains reach maturity in limited areas of Saskatchewan with 2750
degree days (see Map 8B, page 30) and quality ensilage may be produced
from corn harvested before complete maturity.
18A• W. Currie, Economic Geography of Canada, (Toronto, 1945),p. 197
in Mileso 100
in Milesa 100
, I
-30-
CONDITIONS OF TEMPERATURE
MEAN FROST-FREE PERIOD IN DAYS
Map SA
DEGREE DAYS
Map SB
Source:The Climatesof Canada forAgriculture1967, Fig. 12
Note:The numbersrepresent·thesum. of degreesabove 42°F.,between thedates ofoccurance of420 in springand fall based onnormal monthlytemperatures
Source:The Climatesof Canada forAgriculture1967, Fig. 9
-31-
TABLE 12
RELATIONSHIP OF IRRIGATED FODDER ANDPRESENCE OF MILK eGiS IN THE
GRASSLAND REGION 1961
Unit Total Area %ofin Acres Total
Acres ofIrrigatedFodder
%ofTotal
No. ofMilkCows
%ofTotal
Division 7 4,405,921 100 5,370 100 S,723 100
Excelsior 290,147 6.6 5,049 94 1,575 IS
Note: There are only 321 acres or 6% of total irrigated acres offodder in all the remaining 22 Rural. Municipalities ofDivision 7.
Source: D.B.S. 1961
The concentration of milk cows in Excelsior Rural Municipality in
south-western Saskatchewan, illustrated in Table 12 (in which 18% of
the milk cows of Census Division 7 are found on 6.6% of the land),
together with the presence of irrigated fodder (94% of that available
in Division 7), and the nearby market at Swift Current, constitut.e a
set of factors which, while uncommon to most of the steppe-grass region
(see Map 6, page 23), contribute to intensive dairying in this specific
location.
Cyclical shortages of fodder resulting from Elrought is a problem.
which Saskatchewan farmers periodically face. The following method. has
been suggested for overcoming this difficulty.
"Same years forage is produced in abundance - again there is ashortage for a year or two • The only safeguard against such leanperiods is to store it during plenty. This can be done by
-32-
carefully stacking straw, hay and dry corn fodder and by providing silos for green fora!9. These silos, crudely constructedwill serve the purpose. tI
Modern handling techniques however, provide a more satisfactory
solution to this problem; forage supplies may be re-distributed with
the assistance of the Federal-Provincial "shared-cost" programmes as
suggested in this account:
ttPoor pasture and hay crops made 1967 a most difficult year forSaskatchewan dairymen. Early grass growth was slow and producerscut all sources of hay supplies to supplement the pastures andtried to obtain reserve for winter feeding. Fodder shortagesoccurred in many areas , particularly in the eastern and southernparts of the province. Freight assistance provided by theDepartments of Agriculture helped procure the necessary additional feed supplies. Mos t of the purchased hay came from Albertaand Manitoba but considerable ha~Ofrom within the province wasmoved to areas in short supply."
A degree of correlation may be noted between seasonal variations
in precipitation, temperature and milk production. The monthly pro-
duction of butter, which indicates the amount of cream shipped from the
farms, shows the greatest seasonal variation in the statistical areas
which are in the Park Belt (see Map 9, page 33) where peak butter pro-
duc tion coincides with maximum precipitation during June and July.
Here, cream shippers are generally mixed fanners who arrange to have
their small herds of milk cows freshen in the spring" reach top pro-
duction in the summer when the pasture is most plentiful and then dried
off for the winter - a system which is traditional in both difficult
and pioneer areas. Similarily, although to a lesser degree, fluid milk
production on the more specialized Class 1 dairy farms, coincides with
the South-West, Report of
1967)Milk Control Board of Saskatchewan, (Regina,
-33-
SEASONAL DISTRIBUTION OF BUTTER PRODUCTION
AND PRECIPITATION 1967
2
...~ 5
"'Co 2 .J+--il-+-+-+++-t-+--I---ll-f-+-+++-+-I,.-HI-+-~C;;;,Q.(II
m I 1+-+-+-+-+-+-+-+",C--<D...
J f
4
3
2 J-+-++-+-++-+--+--jl-+-~~+++-+-+-\.
• SWI fT CURRENT
J F M A M J' J A S 0 NO
Butter production is shownfor divisions establishedprovincially for that purpose.Precipitation is for aselected station withinthe statistical division.
Scale in l!liles
25 0 9C:: 50,_,v!Fe wi , I
Sources: Dairy' ProductionReport" Regina, 1967The Agricultural Climate of
Map 9 Saskatchewan" Toronto, 1967
-34-
seasonal variations too. In both the Saskatoon and Regina milk sheds,
there is a marked decline in production from July through October,
(see Figure lA, B, page 35), a period that marks decreasing precip
itation and dwindling pastures. The recovery of production in the late
fall coincides with the period when the cattle are stabled and put on
prepared fodder.
'While the physical environment appears generally to be poor for
dairying in Saskatchewan as a whole, conditions in the Park Belt are
less difficult. Here the climate is more favourable, tithe precip
itation is higher, evaporation is less and drying winds are less
common, ,,21 than in the grassland region. Also the aspen groves and
m.eadows of the black soil zone (see Map lOA, lOB, page 36) provide
shade and better fodder; in total, these conditions produce an environ
ment relatively favourable to dairying. Map 11 (page 37) indicates
that milk cows are concBntrated in the Park Belt and Table 13 (page 38)
gives additional proof that dairying is centred here. With only a
little over 1/3 of the improved land and about 1/2 of the total farms,
this area produces 3/5 of the va.lue of dairy products produced in
Saskatchewan. While an unmistakeable correlation exists between the
areal concentration of dairying and the Park Belt, it should be noted
that other factors, in addition to the physical geography, such as
market location, transportation facilities, farmers' preferences for
dairying and their tradition of mixed farming have each undoubtedly
contributed to the presence of concentrated dairying in the Park Belt.
2lA• W. Currie, op. cit., p. 199
-35-
SEASONAL TRENDS IN MILK PRODUCTION
AND PRECIPITATION
SASKATOON MILK SHED
ao..-f+3ctS
.p)o..-f
3p..
onC)(J)
2 M~
CD(J)
...c::C)
0 ~
•CD,.cr-f f 70CD
OlbO8r-fJ50
o~(J) lifo1----------------------ibO
~J30+_------------------__r~ex: /20 ;-- ---,
i"O I------~s:::~ 100
J
l1li Precipitation § Fluid Milk Production
Figure 1A
REGINA MILK SHED
N .n
ao..-f.p)ctS+3e..-f
3p..
o..-fC)(J)
2 ~~-------r
CD
~C)
o ~
•f1),.cr-f f20CD
8/10or-f 100
.~lIo I------------------=--~
(J)bOe80 I--------~~< 70~ -\---------
~ 601------
i soJ F M A 1'1 J J A S 0
Sources for Figure lA, lB. Milk Control Board, ReginaThe Agricultural Climate of Saskatchewan, Toronto, 1967
Figure 1B
in Mileso 100
in Mileso 100
I !
-36-
PHYSICAL CONDITIONS AFFECTING DAIRYING
Map IDA
MAJOR VEGEI'ATION ZONES
I
---------l._\--=\
i,~ ~ _\, r---· '.. -~"~'I\ . °
1--._-~_4 -1
I I~ - e st ------1
Map lOB
Source:Generalizedfran Atlas ofSaskatchewan
Source:Generalizedfrom Atlas ofSaskatchewan
-37-
DISTRIBUTION OF MILK COWS
IN SASKATCHEWAN
1966
••• • ••
• ••
Each dot represents 200 cows •
•
•••
••••
••
••
•
• •• ••••••••• •• •••• ••••• • • •••••• ••
Source: D.B.S. 1966 Datafor Rural Municipalities
• •• • • • •• •• • •• • • •• •• • •
•
••
•
••
•
•
1'---------,
•
•
•
•••
•
•
••
•
• •••• •
•
•
••
Map 11
•
•
•
•
•• ••
•
)
•
•
•
•
•
•
•
•
•
•
•
•
•
::~· .... ... .... :...•• •• •• ••• • • ••• • • • • • • ••• •• •• •• • • •• •• • •••••• • •• • ••••••••••••
• •• • ••• ••••••••••• • •. . ..:.. ... .. . . . ... . .. \•• ••••• •• •... . . \• ••••••••••••••••· \. . ~:: : .
• ••••••••• • • ••••• •••• • ••••• •• • • • •• •••• • ••••• •• •• • •• ••• • • • • •••••••• •• • • • •••••••••••• •••· .. ... ......... .... '\• •••••• •••••••• •••••••••••••• I• •••• • • •••••••••••••••• •• ••••••• ·l• • •• •••• ••• • ••· :.. :• •••••••••• • ••••••••••••••• • • • ••••••• • • • ••• • •• • • •••••• •• •• • •• • ••• • •••••••• ••• ••••
• • •••••• ••••••
• ••• ••••• ••• ••• •
••• •••• ••••• ••• ••• •
•• • •••••••
••• •• •
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•
• •• •• • • ••• • •• •• •• • •• • •• • •• • •
• •• • ••• • •
••
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• • •• • •
•• •• •
• • • • •• • • •• • •• •
I- •
Scale In Miles
25 0 ?c::: 50-vhe ewI I ,
-38-
TABLE 13
AREAL CONCENTRATION OF DAIRTING IN THE PARK BELT IN 1966
Park Belta AllCensus
Divisions
%of Sask.Total inPark Belt
Total Area (acres)Acres of Improved LandNumber of FarmsValue of Dairy Products ProducedFarms Selling Dairy ProductsNumber of Dairy Cows bCommercial .. Dairy FarmsNumber of Creameries
23,346,20615,832,023
41,611$ 9,227,110
13,251ili03,705
37625
65,409,36345,468,776
85,686$15,380,090
19,685153,819
59240
36%35%49%60%67%67%64%63%
Notes: ~ark Belt defined as Census Divisions 5, 9, 10, 14, 15, 16,17 and 18 (as shown in Map 6, page 23).
bA farm with $2500 in sales of agricultural products, half ofwhich comes from the sale of dairy products (see page 54) •
Source: D.B.S. 1966
In the process of adapting to the environment however, dairy
farmers in Saskatchewan have proven that ways and means can be devised
to overcame, at a cost, most of the associated problems. Periodically,
governments have intervened for various reasons and with varying
results which are herewith examined.
The Development and Effects of Federal Dairy Policies: While all
natural resources are the responsibility of the province concerned and
agriculture itself is supervised by provincial departments of agricul-
ture, the Federal Government, through the Canada Department of
Agriculture and other national departments, are responsible for certain
aspects of the agricultural industry. In particular, such
-39-
responsibility involves agricultural research, wartime controls,
marketing boards and trade.
During the economic collapse of the 1930. s and during the
accompanying pericd of falling wheat sales, milk production showed a
marked increase especially in the Park Belt (see Map 5, page 22). As
farmers, attempted to produce a marketable item, butter produced in
creameries increased 64% from 13,920,561 pounds in 1931 to 22,853,859
pounds in 1936 and fam. produced butter increased 16% from 20,973,764
pounds in 1931 to 24,330,673 pounds in 1936. Butter prices declined as
fanners across Canada competed for the limited market. For the next
three years, production remained high and prices continued to sag while
the Federal Government tried unsuccessfully to cope with the problem.
With the outbreak of World War II in September 1939, Saskatchewan
farmers, recalling the high prices of 1914-18, were immediately
optimistic about future markets but there was little change until the
following spring when Britain called on Canada for more food. The
Federal Government thereupon decided to utilize agriculture as one of
the major contributions of the Canadian war effort, and shortly there-
after instituted market and price control legislation. Subsidies were
paid to stimulate the production of milk, cheese, butter and other
products considered essential.22 While the objectives of these wartime
policies were plainly short-run, designed to meet the emergency, their
effects continued into the post-war period. During the war however,
farmers resented the price ceiling because farm prices were depressed
when the control programme was introduced and in spite of agitation,
22w. lilI. Drtumnond and Vi. J.,Anderson and T.e. Kerr, A Review ofAgricultural Policy in Canada, (1966), p. 45-52
-40-
only minor upward price adjustments were allowed. In consideration of
the fanners! response to the war effort hOvlever, the government decided
upon some income guarantee for the immediate post-war period. As a
result, the Agricultural Support Board was established in 1944 to
prescribe fair prices, and to pay the farmers - from government funds
the difference between the prescribed and current price.23
Shortly after the war, the British market for Canadian dairy
products weakened and with the termination of the war contracts in 1952
this market disappeared. Canadian dairy products were squeezed out by
those from other Commonwealth countries, especially New Zealand, where
production costs are relatively lower. European markets, especially in
Germany, where Canadian products might have competed successfully were
at this time closed, as a result of restrictive dairy policies
instituted by the German Government and others, in order to protect
their own dairy farmers. Consequently thereafter, Federal Dairy Policy
has attempted to gear production to meet national needs only but, until
very recently, has not had great success. Overproduction of dairy
products has been chronic.
'While the production of creamery butter increased during the war
and stabilized in th e post-war period at about 28,000 .. 000 pounds
annually (see Table 6, page 14). there was a sharp decline in the
amount of hame-produced butter, dropping from 18,597,987 pounds in 1941
to 882,000 pounds in 1966. This decline reflected not only changes in
consumer preferences but also a change in the role of farm housewives,
fewer of whom bothered with churning and making butter in the home; the
23W• l'I. Drurmnond, ,2E- cit., p.53
-41-
butter which continues to be so-produced is undoubtedly for the use of
the farm fcurdly.
By 1958, the 'cost-price squeeze' was affecting the small farmer
particularly and the Federal Government initiated the Agricultural
Stabilization Act which was intended to help farmers receive their fair
share of the national income.24 Nine commodities including butter,
cheese and manufactured milk were to be supported by government funds,
at a minimum of eighty per cent of the average price over the preceed-
ing ten years (see Table 14).
TABIE 14
BUTTER SUBSIDY POLICY 1961 to 1966
Year
1961-621962-63
1963-641964-651965-66
Amount of SubsidyReceived by Farmer
7.1¢12.0t
14.5¢13~3¢
10.9¢
Method of Calculation
per pound butterfatper pound manufactured butter
(Butter = 80% butterfat)per pound manufactured butterper pound butterfatper pound butterfat
Source: Personal Communication, Mr. Fulfort, The D~iry and PoultryPool, Saskatoon.
From 1958 to 1963, creamery butter production in Saskatchewan
remained relatively steady at about twenty-seven mi+lion pounds
annually in spite of constantly rising costs of production. Since then
24G• I. Thant, tfRecent Canadian Dairy Price Policies tt, TheCanadian Journal of Agriculture Economics, XI (1963), p. 31
-1+2-
it has been declining at an accelerating rate as Table 15 indicates.
TABLE 15
CREANERY BUTTER PRODUCTION IN SASKATCHE'v~ANFROM 1963 to 1967
Year
19631964196519661967
Butter inPounds
26,920,52025,223,56621,699,86319,030,56816,255,592
PercentageDecrease
3.96.3
14.012.314.6
Source: Annual Report, Department of Agriculture, (Regina, 1967)
By 1964, the subsidy was apparently not sufficiently attractive to
encourage Saskatchewan farmers to continue producing cream. at the same
rate and some appear to have turned to raising beef cattle (see Map 4,
page 21), an operation involving less labour but utilizing similar
farm resources. In the face of mounting problems and skyrocketing
subsidy costs (which rose from $17,000,000 in 1965 to $69,000,000 in
1966) the Federal Government appointed the Canadian Dairy Commission to
take over the responsibility of the subsidy and marketing programme,
beginning in 1967.
Federal Railway Policy and its Effects on DairJring: In attempts to
rationalize their branch line systems, the railway companies have
created some problems for the dairy indus try. Over the years, cream-
eries have been purposefully located at central rail points to
facilitate the collection of cream from a wide area. The suggested
-43-
effects of the policy of rail-line abandonment on the cream business is
illustrated as follows:
'~here are several reasons for the decrease in the number ofcream shippers, but the main factor in the present rapid declineon the Prairies was said by Dairy Manufacturers ,to be the railline abandonment in the area. Cream cans stacked on a railwaycountry platform were a familiar sight a few years ago, buttrains have been taken off country routes or run at such infrequent intervals that cream now has to be shipped by truck tocreameries. The truck route does not always follow the railroute and some shippers found they could not send the cream tothe creamery they had become accustomed to. To many creamshippers, who were in difficulties through lack of labour or som2other cause, the loss of the rail service was the 'last straw'.tt 5
Also, the impact of the National Transportation Act of }Iarch 1967,
although not yet fully implemented regarding cream shipments, may in
all likelihood, be similar • Formerly, the Board of Transport
Commissioners could regulate the rates of certain goods carried by
express, and cream was one of these protected commodities. Under the
proposed legislation, the principle to be followed is that there must
be a profit for the railroad on every article handled which means that
rates on less-than-carload-lots will go up; if this system is put into
force, cost of shipping cream by rail may be prohibitive.26
Creameries are attempting to overcame these problems by employing
their own trucks to serve their patrons as efficiently as possible and,
although in recent years butter production has ceased in some plants,
depots are retained in each for the .pick-up of cream which is then
transferred to another more-distant plant for manufacture. However,
25Reginald Taylor, IfPrairie Dairying Declining IndustryH,Western Producer, (Saskatoon, April 21, 1966), p. 4,5
26Harold Arthur, flNewRail Rulings Hit Farm Productsu,FamilyHerald, (JUly 18, 1968), p. 9
-44-
since cream production in Saskatchewan is widely dispersed, its
collection presents considerable and increasing difficulties.
Effects of Provincial Jurisdiction on the Dairy Industry: Sorile control
of the quality and cleanliness of fluid milk production was established
by the Public Health Act of Saskatchewan in 1923. However, conditions
arose in the 1930's which necessitated more snecific regulation of the
marketiM of fluid milk; these are set out in the following statement
prepared by B. A. Cooke, Chairman of the ¥.dlk Control Board of
Saskatchewan.
UAlI Vlilk Control Boards trace their beginning to a commonsource, namely, an emergency in the business that was endangeringthe economic life of those engaged in the production or handlingof rr~lk, but more particular~v of the producer. In some casesthe threat to the supply both as to quantity and guality was alsoinvolving the conSUIuer. It is a common story of interwoveneconomic factors - a large world carry-over of wheat, the crashof farm markets, grain farmers turning to dairying for readycash, mushroom growth of new distributing concerns, price cuttingby distributors to obtain or to hold good customers all of whichwas reflected sharply in producer's income not only through low~7
prices for fluid milk but also in the form of large surpluses."
The Saskatchewan lrlilk Control Act became law in 1935 and although
it was initiated primarily to deal with temporary ailments of the
industry, its continuing value rapidly became evident because of the
stability it soon brought to the industry. Besides establishing a
price for fluid milk calculated to be fair to the producer, distributor
and consumer, the Act permitted the establishment of geographical
boundaries of 'controlled areas' (see Appendix D); the licencing of
27B• A. Cooke, t~he Development and Operation of }tlilk ControlBoards It, Reprint of address given at Vancouver 1939, Milk Control Board(Regina), P. 1
-45-
distributors in order to ensure their proper use of adequate and
sanita~ equipment; the bonding of dealers for the protection of
producer-shippers and the licensing of truck operators in order to
control the transport facilities used in the trade.
The Act is carried out by the Milk Control Board whose powers may
be expanded if conditions warrant as illustrated by Clause 7(i) 1965
of the Milk Control Act:
t'The Board may, upon its own initiative or upon complaint inwriting, inquire into any matter relating to the production,supply, distribution or sale of milk and may make such regulations or 02§ers in connection therewith as it deems necessa~
or advisable. 1I
TABLE 16
PRODUCTION AND CONSUMPTION OF FLUID MILK IN SASKATCHE1iAN IN 1967
1-lilk Sheds
SaskatoonPrince .AlbertYorktonBattlefordsWeyburnEstevan
ReginaMoose JawSwift CurrentHumboldtMelvilleMelfort
Production
56,563,28110,287,2044,164,7734,836,4074,197,1323 ..496,486
37,944,383.lOj.3~7,422
8,981~260
1,056,3262,557.,7262,433,567
TopRequirements
47,096,3549,034,1584,088,0584,599,3423,462,8803,313,836
40,994,14611.887.331
9,396,6991,213,2763,515,0062,490,247
Difference
9,466,9271,253,046
76,715257,065734,252182,650
3,049,7631,499,909
415,439156,950954,28056,680
%Surplusor Deficit
+ 20.1+ 13.8+ 1.8+ 5.6+ 21.2+ 5.5
- 7.4- 12.6- 4.4- 12.9- 27.1- 2.2
- - - - - - - - -. - - - - - - - - - - - - - - - - - - - - - - - - - - -Total lk6,905,977 141,068,333 5,837,644
Source: Annual Report, Milk Control Board of Saskatchewan, (1967)
2~lk Control Act, Saskatchewan 1965
-46-
Primarily, the Ydlk Control Board is resDonsible for all aspects of the
fluid milk trade in the tv/elve controlled areas (see }fLap 12, page 47).
However, a major concern is to see that production and market demands
balance in each milk shed and this is done by dividing up the fluid
milk requirements and issuing production quotas to the shippers, there-
by guaranteeing them a secure market. Collectively, the twelve con-
trolled areas produced a small total surplus of 4.1% above requirements
in 1967 (see Table 16, page 45). However, because milk is not trans-
ferable between milk sheds, it is important that production and market
demands balance in each. Deficits occurred in 1967 in six areas (see
Table 16) and in the case of Moose Jaw~ IvIelville and lvlelfort, the
shortages would have been greater if sales hadn't simultaneously fallen
off (see Table 17, page 48).
With the approval of the Board, these shortages may be compen-
sated for by 1reconstituting I milk, a process involving the mixing of
skim milk powder with butterfat. In 1967, 20,219,991 pounds of
reconstituted milk were used by the distributors in the controlled
areas; approximately 7,770,621 pounds of this in the fluid trade and
the remainder for ice cream and cottage cheese. 29 A number of problems
accompany the introduction of reconstituted milk into the fluid trade.
While the ingredients are identical to fluid milk, the milk powder used
is not only a cheaper product (since it is government subsidized) but
is also a less-rigidly controlled commodity regarding sanitation.
Hence knowledgeable customers view the product skeptically. Processors,
29personal Communication from vi. B. l-fotion, Chairman of MilkControl Board, dated at Regina, Janua!J'- 14, 1969.
-47-
PRODUCTION OF MILK IN 1967 IN
THE TWELVE CONTROLLED AREAS
Circles are proportionalto production of milk.The numbers representpounds of milk produced.
56 563,281 -
HU~BOlDT
1----------\1---\ 1,0 56,326
~~S-A-S-K-A-T--OO~N
BAT T L EF Q RD S4,836,407
SWIFT
CURREN1'
a,981,260
Scale in lJIiles
25 0 25 50....~=-_IIf:=:=:I=' =~, Map 12
Source: Milk ControlBoard Report, 1967
TABLE 17
SAIESOF SELECTED DAIRY PRODUCTS IN SASKATCHEWAN IN 1967
Urban Area Quarts Whole Milk %Change3.5% Butterfat fram 1966
1967
Quarts Partly Skimmed %Change Quarts Substantial %Change2% Butterfat from 1966 Cream 10 - 12% from 1966
1967 Butterfat 1967
Moose Jaw 3,489,299 - 10.01 853,838 + 54.49 153,186 - 10.16Regina 11,405,976 - .67 3,047,935 + 34.07 805,342 - 1.46Prince Albert 2,761,894 + .36 415,919 + 78.60 142,121 + .87 J-Yorkton 1,259,008 + 3.59 228,781 + 14.20 82,514 + .27 ~,Saskatoon 13,465,380 - 1.01 3,416,773 + 36.26 651,502 - 1.77Swift Current 2,417,178 - 5.49 1,115,1~ + 31.42 84,799 - 7.69Battlefords 1,335,179 - 7.57 341,575 + 41.20 54,725 - 5.93Humboldt 407,508 + 3.42 45,966 +126.34 9,888 + 9.89Melville 843,307 - 11.64 461,588 + 61.75 46,739 - 6.10Weyburn 1,046,916 - 17.38 226,527 + 65.83 44,817 - 4.03Estevan 1,228,025 + 2.54 1,672 - - - ... 18,122 - 15.56Melfort 825,624 - li.77 100,750 + 41.31 19,221 + 39.78
Totals 40,485,283 - 2.87 10,256,428 + 35.97 2,112,979 - 2.40
Source: Annual Report, Milk Control Board of Saskatchewan, 1967
-49-
too, face a problem of obtaining a supply of sweet-cream butterfat
which is a prerequisite to reconstituting a quality product. The Board
could eliminate the need for using reconstituted milk by using its
powers under Section 15, June 24, 1966, of the regulations which state:
'1When the whole milk requirements of a distributor are not available from producers supplying that distributor, the board may atits discretion, order that additional supplies be obtained fromother distributors or directly from other procl5cers, either fromwithin or without the area concerned •••• '~
Traditionally, however, the Board has concerned itself with the
interests of producers within each individual shed and any weakening of
this established system lessens the protection for milk producers
therein. Consequently when shortages occur, producers usually attempt
to increase production locally as rapidly as possible; hence shortages
necessitating the use of reconstituted milk are generally only of a
temporary nature.
Controlled area legislation needs constant. updating as conditions,
affecting milk production and marketing, change. In the 1930's when
transportation was more difficult and the highways few, milk production
developed on farms which were close to each urban centre. Today, how-
ever, fluid milk can be shipped economically, in refrigerated bulk
tanks for several hundreds of w~es and the provincial highway system
is adequate to the task (see Map 13, page 50). In the 1930's too,
local markets were relatively stable but today these markets display
marked variations indicating population mobility, change in age
structure, local trends and preferences. For exaL1ple, from 1961 to
3~dlk Control Board Regulation Section 15, (1966)
-50-
DEVELOPMENT OF ALL...;WEATHER ROADS
1946 - 1966
in Miles25 0 25 50,
-
:Map 13
to 1946
to 1956
to 1966
AJber t
Source:Department of HighwaysRegina
-51-
1966, Swift Current had a percentage increase in population of 18.8 and
a percentage increase in milk sales of 41.11 while Huolboldt had a
percentage increase in population of 22.6 but showed at the same time
a decrease in milk sales of 2.63 per cent (see Table 18, page 52).
Similarly, Table 17 (page 48) indicates that individual markets varJ
widely from the provinciaJ. average not only in their percentage
participation in sales but also in the type of milk product that is
most popular. Therefore a problem arises of channelling the correct
quantij:,y of whole milk into the various dairy products in a number of
isolated and small markets.
The restrictive nature of controlled area legislation presents a
problem which may require modification of the law in the light of
present high capital costs of specialized dairying. The controls,
which in effect, may encourage the investment of dairy capital into a
specific milk shed in order to meet the requirements of a small and
perhaps specialized market, appear unreasonable. As well, operators in
nearby accessible milk sheds, functioning under identical health
regulations and with capital already committed may be prevented from
maximizing the use of their investment because they are shut out by law
from the neighbouring fluid market. To overcome this problem,
w. B. }tlotion, Chairman of the Milk Control Board has suggested: ''We
are considering a change in the quota regulations which would permit a
distributor in one shed to be classified as a producer in another for
the purpose of receiving a quota in a short supp~y area. tt3l
3lpersonal Communication fromW. B• Motion, Chairman of the MilkControl Board, dated at Regina, January 14, 1969.
TABlE 18
CHANGFB IN MARKET SIZE AND SALES OF SELECTED DAIRY PRODUCTS IN SASKATCHEWAN FROM 1961 TO 1966
Urban Area
Moose JawReginaPrince AlbertYorktonSaskatoonSwift CUrrentBattlefordsHumboldtMelville
Population % Milk Unitsa Increase %1961 1966 Increase 1961 1966 Increase
33,206 33,417 + .6 5,013,472 5,143,782 130,310 + 2.60112,141 131,127 + 16.9 15,498,296 17,331,698 1,833,402 + 11.8324,168 26,269 + 8.7 3,536,012 3,670,195 134,183 + 3.799,995 12,645 + 26.5 1,365,889 1,724,714 358,825 + 26.27
95,225 115,892 + 20.8 16,934,921 19,337,365 2,402,444 + 14.1912,186 14,485 + 18.8 2,703,722 3,815,242 1,111,520 + 41.1112,857 14,028 + 9.1 1,615,521 1,943,633 328,112 + 20.313,245 3,979 + 22.6 476,387 463,837 - 12,550 - 2.63 I5,191 5,690 + 9.6 934,978 1,616,302 681,324 + 72.87 \Jl
l\)I
Total for 9 308,214 357,532 + 16.0 48,079,198 55,046,768 6,967,570 + 14.49- - - -b- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -Weyburnb 9,101 9,000 - 1.1 1,602,314Estevanb 7,728 9,062 + 17.3 1,335,821Melfort 4,039 4,386 + 8.6 1,147,320
Total 329,082 379,980 + 15.5 59,132,223
Notes: &.Milk Units: 1 quart of whole milk; chocolate milk; buttennilk = 1 unit;1 quart substantial cream = 2 units; 1 quart coffee cream = 4 units; 1 quart Whipping cream =6 units
bContro11ed areas established after 1961
Source: D.B.S. and Milk Control Board of Saskatchewan
-53-
Q~nclusion: Governments, in attempting to assist producers and protect
consumers, have developed dairy policies in keeping with the recognized
demands of the times by using methods which range from encouragement
through the use of subsidies, to outright control of production and
marketing. In their etfects, however, national policies have failed to
achieve the benefits that might have occurred through long term
planning, because they have been customarily designed to direct the
industry over specific short-term crises. Currently market policies
are affected by the protect~ve policies of most producing nations and
the sale of manufactured dairy products must, with few exceptions, be
treated in terms of a national market. Trends in the provincial fluid
milk trade however, indicate that it could perhaps benefit if the
market were extended beyond the controlled milk shed to include a wider
area to take care of short term shortages and to give established fluid
producers a wider market thereby encouraging the economies of larger
scale production. Al~hough government policies throughout the
development of the dairy industry in Saskatchewan have had a wide range
of effects, those producing the most beneficial results have been
generally based on awareness of historical trends, enviromnental
characteristics and changing market conditions. The intera.ction of
these factors ha.s produced patterns which will be examined next.
-54-
CHAPrER 3
DISTRIBUTION PATTERN IN THE DAIRY INDUSTRY, 1966
The location and concentration of milk cows and milk production,
dairy farms, manufacturing plants and markets identify the areas where
dair~ying is currently prevalent and where some specialization is
occurring.
Maps, based on data recorded by the Dominion Bureau of Statistics~
are utilized in this chapter to illustrate these areas. Much of the
significant data for the dairy industry which is collected by the
Dominion Bureau of Statistics is recorded for the month of l-1ay only.
It necessari~v follows that maps based on such data display a rather
specific distribution in time and will not necessarily be correct for
other periods of til e year.
The definitions regarding the data employed for examining dairy
specialization are explained here as well, as these terms will be
frequently used throughout this chapter. A "census farm It is an
agricultural holding of one acre or more with sales of agricultural
products, during the twelve month period prior to the census, of $50.
or more. A "commercial farm" is a census farm but with sales of
agricultural products during the twelve month perioi prior to the
census of $2500. or more. A "non-commercial farm" is a census farm
with sales of agricultural products ranging from $50. to $2499. during
the twelve month period prior to the census. A "commercial dairy
-55-
farm" is a commercial farm on which 51% or more of the total sales of
agricultural products is obtained from dairy products.
Location of Milk Cows : Generally, milk cows are dispersed throughout
the agricultural part of Saskatchewan although they are more prevalent
in the Park Belt than in the grassland areas (see Map 11, page 37).
Specifically, concentrations of cows are located on the farms of the
Park Belt in areas east of Wadena and north of Saskatoon (see Map 14,
page 56). Moreover, with respect to the total cattle production, milk
cows and heifers are most numerous in a discontinuous belt stretching
across the Park Belt from Canora to Rosthern, reaching the highest
degree of concentration north of Saskatoon (see Map 15, page 57). Only
in the latter area does the proportion of milk cows to total cattle
reach one-half, a fact which demonstrates the relatively low numerical
status of milk cows in Saskatchewan.
Location of Milk Production: Milk was produced in May 1966 at a rate
of eleven gallons and over per one hundred acres of improved land in a
continuous zone across the Park Belt (see Map 16, page 58). Production
rates were considerably higher around most of the urban centres
especially Saskatoon and in an area in the east, stretching from
Broadview to Norquay.
Dairy Farms - Their Location and Specialization: A relatively small
number of farms in Baskatchewan sell dairy products. This is
particularly the case in the grassland region where less than 20 per
cent of farms report any sales of dairy products (see Map 17, page 59).
-56-
MILK COWS PER SQUARE MILE OF FARMLAND
1966
• over 15 ~: 7 - 9
=13-15 8' 4 - 6
=10 - 12 D 0-3
1
Scale in LCiles N
t.5 ,2 2~ ~O t Map 14Source: D.B.S. 1966 Datafor Rural Municipalities
-57-
COWS AND HEIFERS AS A PERCENrAGE OF ALL CATTLE
BY RURAL MUNICIPALITIES - MAY 1966
1080 86- -
==21 - 40 0 0 - 5
Em 11 - 20
~.-
p,,- l\ ""'"'\ - --
"" ............ \ ""-I 1 - \. -....., \ """ J7 \ \ IJ' /
t=(~'-)~ 7
1.1 7I
\ - ........ ./ T , \./'\\ .A ..... ,....,. I'lIo
"\. 11 1\..../ \ I I I I
"- \1 11 /" ... _other" 1'-"'" 1//~ ~ . ·"i " IV"
C3 :i ' I 1"- ........Loopi ~.II urrlbo I d1t ._t---(
Sa s kat ~ ..[111. I JI T"'r\. ~ I I f \I"\. __
1 \. I 1 ( ""-:11- \.1 I_II I~
~ " I \ .I \.1 1\ 1I1 1 I I 1 J
'- - Cano~'\. 1\
1 L. \
@'- ./ ,. ...-
"""""rfl
\. \1.1
~I ~,
/ \
-"""'"/ ,
~
( 1/ .......1
'-- ,r""oo ~ \ I
a::b ' I!oJ. "" 1
~I \. "" " .....- J
II I I / Il \ /'./'- I I , 1 I' l I
I ""- l./ "- \. ~ l'-. '- 1I ........... .........
~( I , \ \
~'-.\ I
~
qScale in Miles
25 o 50
N
t Map 15 Source: D.B.S. 1966
-58-
GALLONS OF MILK PRODUCED PER 100 ACRES OF IMPROVED LAND
BY RURAL MUNICIPALITIES - MAY 1966
In Gallons
20l60§ 11.81~ - -
=41 - 80 D 0 - 10r---
'-'\
§I]-..... :I 21 - 40~ I
~~':::.~ I~I I IT'- I""=~ ~r-
I~~,-......J I I II I ......." ""\ --'\..I 1/""'"
~ "- """ ""'"/1 I I'\. ~ 1\ }
~\I J I ,.. ..JtP' \ /-......... _f rin :e -A n I~.r·t J /
"\. ,.. ..... / I V /'/1 I I~I 1 (
/ \ '--.,. "- n AI .,~ 'I.. ""'\
~ '.7 - J~ 1 \ IX /
\"""'- I I 1'- :I - // 1""_-- ....... i'\.
'-II }) f 1'- '\
~ \. U
" \\ I
'- / \ I \. "~.A • ajkato~ ......
~.N.~r'qLc!~"""(f I~\ \ \...... ~ ./ \ I v "-
\ I 1 F'
\.. J""-llot.!...o' "" I'\. I
"""/ - ."
I 1/
"J'J • or t()O./ ...... .....,,""
/' ,( " "\.
~~'---I~ /' 1
~ - :1~ \ II ~ II \ I
VI \\ / - \
C,urrent~ose~9JI1$i\ I :"....rSroadv i.ew,,- \\ I
f---, JJJ"f'f tJa:w~ 1.--'...1 r-
~ f '\~
~\. I "- If \.- '" ......-...... .......
\. • Map Ie Creek ....... \. \.1'- I , ...... I1 1\1
~ ,II I I JI • eyburn~ ,~J,-
~Scale in Miles
25 0 25 50he wi , I
N
t Map 16 Source: D.B.S. 1966
-59-
FARMSWlTH SALES OF DAIRY PRODUCTS
AS A PERCENTAGE OF ALL FARMS
BY RURAL MUNICIPALITIES - 1966.''; ~' -'-~
• 51 -60% § 21 - 30%
=41 - 50% D under 21%
tl§ 31 - 40%
.apleCree._~_..,
Scale in Miles
25 0 25 50......=-:=...w1===±:'=:=::;1'
Map 17 Source: D.B.S. 1966
-60-
This percentage increases throughout the Park Belt with concentrations
developing in areas around Canora, Yorkton, Humboldt and Saskatoon.
Even in the Saskatoon area, the proportion of farmers selling dairy
products is only slightly over one-half, a fact which demonstrates the
low degree of involvement in dairying by Saskatchewan farmers in
general. Indeed dairy products accounted for only 2.1 per cent of the
value of all provincial farm products sold in 1966 (see Table 19).
TABLE 19
TOTAL VALUE OF AGRICULTURAL PRODUCTS SOIDIN SASKATCHEWAN IN 1966
Product
All Agricultural ProductswneatDairyAll Others
Source: D.B.S. 1966
Value
$731,454,130472,327,090
15,380,090242,746,950
7& of Total
10064.52~1
33.4
This low degree of participation in milk production is borne out
in the average sales per producer for May 1966, with farms in the major
milk sheds, only, selling over $160. worth of dairy products (see
Map 18, page 61). The highest sales for the month of Hay were recorded
by farmers in the two rural municipalities surrounding Moose Jaw; but
this higher return reflects the scarcity of milk cows in the area and
the small number of producers. Since the production of milk was small
in quantity, it was possible to market all the available milk as Class
1 fluid which provided a higher income for the few specialized
producers involved.
-61-
AVERAGE SALES OF DAIRY PRODUCTS
PER PRODUCER FOR MAY 1966
In Dollars
D 0 - 40=161 - 320
81 - 160II
I~
~ r- ~~___'\
........... \l-------I...)~ "\. ~
/o--------~-----_"'___, '-....
41 - 80 == 321 - 640
.641 - 1280
I-~------~------------;l ~"\. ~ _ """" ""'-//1 I I I If
I I A I" A I I 11 I.. I.Y" "'"v "\.U 1\ f I I V \
1/ II \\ ~ All -.J_r "l ~Il / ~ (I I I 11 J
JI'-r-'" I 1".., -bl'r-'" "" /I I II ~ J
I I If ~ II
~ .1 IjJ ~,\\~tt~-<'~1~_I.._flt======\.~-:::==~:~~\--1 ~\}tj:~r••III.,IJ/.tl!~=::::=====~~==\.~=~~~ ~ ,-
;:::.. I rSa~lk~tnnn .r-'\ ~
]~~\.__~:ctl'~::::====":::jl lUI I")f\ ~I V / J \..11/1
(~_~~~__.P'''''&''''_l::+l--l~'7'_~--::~~~:-l\-./-/-7;''{Ii-~--------C'~
"cf (/\ II
'\. \\
-,- I If--..../ I~II'\.
~~~ri-~~~11i~le_lalli~.nIlA......~.\===~lI~ I I.,~ _ 1\ l
/ I I JL-J" 1\ I I Ir", H J~ ~ ..... II~~ J
R ~J ~(I' II I ~JI I\. '\ ~IL( ,WAvburn \1 I I~ J
, T I \ ./ '---'~•••1 II "l I J T1"'.1/ ~~~~ V J\--_---IJ \ J
~ " "" f{ ~ I~' I\.'-
Scale in Miles
25 0 25 50.....-=-~-'I::::=:=:::1'====:::;l1
Map 18Source: D.B.S. 1966 Datafor Rural Municipalities
-62-
Relatively few of Saskatchewan's farms are classed as "commercial
dairy farms" according to the census definition. Although 81.48 per
cent of all Saskatchewants farms are defined as commercial operations
(see Table 20) only 592 or 1 per cent are sufficiently specialized
in dairying to be classed as cam1~rcial dairy farms (see Table 21).
TABLE 20
FARlvI CLASSIFICATION IN SASKATCHEVlAN 1966
Classificationa Actual Number of FarnlS %of Total
Census FarmsCo:mmercial FarmsNon-Connnercial Farms
85,68669,96215,728
10081~48
18.52
Note: aSee page 54 for definitions
Source: D.B.S. 1966
TABLE 21
SPECIALIZATION OF COl'ifr'lERCIAL FARllifS IN SASKATCliE'"vIAN 1966
Classification
Commercial FarmsCommercial-Wheat SpecialtyCommercial-Dairy SpecialtyComn~rcial-AllOthers
Source: D.B.S. 1966
Actual Number of Farms
69,96251,650
59217,720
%of Total
100741
25
By comparison, 51,650 or 74 per cent of all comrrlercial fanms specialize
in wheat, a characteristic which appears to be the result of both
-63-
preference and advantages for wheat growing over other agricultural
activities in Saskatchewan. The relatively few specialized milk
producers (see lI1aP 19. page 64) are located mainly near the urban
centres (see l-Iao 20, page 65) where participation in the fluid milk
trade is most favoured.
Characteristics of Commercial Dairy Farms: It is fairly obviuus that
commercial dairying is associated with farming having a relative~y high
total value in production of all farm products. Of the 592 commercial
dairy farms (402) 68 per cent average over $10,000. value of all
products sold (see Table 22). By definition. more than 51 per cent of
TABLE 22
CLASSIFICATION OF COFllv.JERCIAL DAIRY FA.RlvISACCORDING TO VALUE OF ALL
PRODUCTS SOLD 1966
Value of AllProducts Sold
$35,000+$25,000$15,000$10,000$ 7,500$ 5,000$ 3,750$ 2,500
Total
Number ofCommercial
Farms
1,0931;7898.. 571
13,61011,49615.570
8,6149,219
69,962
Number ofCommercialDairy Farms
3848
168148
68482849
592
Dairy Farms as %of All Commercial
Farms
3.52.72.01.10.60~3
0;30.5
0.8
Source: D.B.S. 1966
-64-
DISTRIBUTION OF COMMERCIAL DAIRY FARMS
1966
•••
l
.~
• •• •
• •• •
••• ••• ••••
•• : ••••• I,•••••
•••••••••
•
•••... ·L.:.: ..-.I.·.
• •
•••
• •.~.•••
•• •.•.~Regina.
•
• ••••
• •••.. :.•.••• • • ••
• •• •
•
•
•
Number of Farms125
e:-:-~:_:;:.
•
i·
••
••.. .:-:.·S·•••
• •••
•
( --__ Each dot represents one farm.
~I
• •••
•••
• •• •••
••• ••• •
•••••• ••••·.:.
• •• ••.: ••
•
••
••••• •••• •• •• •• •
••
•... ..'-------------------------------_...:..~._--_.-
Scale in Niiles
25 0 25 50·IwE::II-===-....IIIt::::===l'~=:::;l1
Map 19Source: D.B.S. Data 1966for Rural Municipalities
-65-
URBAN POPULATION OF SASKATCHEWAN 1966
IN CENTRES OF 2000 AND OVER
Q~MeadOW la~
In Thousands-------130
30
2
1
Esteva".
Moosornin'
.wayb,urn
\
.HUmboldt . \Saskatoon
e·Wynyard •elmora 2· e.. \
Kamsack I
YorktonA
",,,Ivilla rEsterha4
Regi.na
• Assi nj bO'La
•
_loliPawi.n
. 626 Prince Albert
•_ Hudson Bay.~
;Menort '13- 6 Tisdale ~.l'I. BaWa,lord
eUnity
Bigga r riJ
-eRosetownWKind~rS,ey
Lloydm inste r70.71
Scale in T,Iiles
25 0 2t::: 50 Map 20v
!Me -' , I
Source: D.B.S. 1966Census of Canada
-66-
this value was derived from the sale of dairy products but, on many of
the farms the proportion of the income derived from dairy operations is
undoubtedly higher than 51 per cent of the total. An indicator of the
high dairy productivity of these 592 far.ms is the fact that they
produce 44 per cent of the total value of dairy products sold from all
types of commercial farms in Saskatchewan (see Table 23).
TABLE 23
VALUE OF DAIRY PRODUCTS FROlvi COMJ1lERCIAL FARl·1SIN SASKATCf:lE\iAN 1966
Classification of Farms
All Commercial FarmsCommercial-Dairy SpecialtyCommercial-Wheat Specialty) with
) someCommercial-All Othe rs ) dairying
Source: D.B.S. 1966
Value
$14,469,1806..373,7104,029,420
4,086,050
%of Total
1004428)
) 5628)
Of special significance to an understanding of the dairy industry
is the fact that 56 per cent of the value of dairy products comes from
farms on which dairying has no more than second priority in the fann
economy.
On 482 or 81 per cent of the 592 commercial dairy farrr~, the
acreage ranges from 240 to 1120 (see Table 24, page 67), suggesting that
conunercial dairying, which requires much time and attention from labour
and management, is associated with medium sized land holdings in
Saskatchewan.
-67-
TABLE 24
CLASSIFICATION OF GOMl·1ERCIAL DAIRY FARMSACCORDING TO LAND-SI~ GROUPINGS 1966
Size of Fanns
3 acres4. - 9 acres
10 - 69 acres70 - 239 acres
240 - 399 acres400 - 559 acres560 - 759 acres760 -1~+19 acres
1,120 -1,599 acres1,600 -2,239 acres2,240 -2,879 acres2,880 - acres
Total
Source: D.B.S. 1966
Number ofCommercial
Farms
58104150
2,43611,51112,77813,63415,4358,3023,4211,0601,073
69,962
Number ofCommercialDairy Farms
115
34III1221231264518
51
592
Dairy Farms as %of All Commercial
Farms
1.7.96
3.31.4
.96
.95
.90
.82
.54
.52
.47
.09
.85
Capital investment in 502 of the 592 commercial dairy fanns,
ranges from $49,949 to $149,949 (see Table 25, page 68). Map 21 on
page 69, illustrates the dis tribution of milking machines; these are
assumed to be an index of farm capitalization. The pattern of
distribution confirms that the most highly capitalized dairy farms are
located within the Park Belt; further, it demonstrates that the highest
concentrations are associated with those areas where factors such as
market, environment, and farming tradition - especially the first -
are of considerable importance.
-68-
TABIE 25
CLASSIFICATION OF COMMERCIAL DAIRY FARMSAND FARMS WITH MILKING MACHINES
ACCORDING TOCAPITAL VALUE
GROUPINGS1966
Total CapitalValue of Farms
Number 0f Number ofComm.ercial Commercial
Fa.rms Dairy Fams
Dairy Farms as %of 111 ... C0mmereial
Farms
Farms withMi.lki.ngMachines
o - $ 1,950to - $ 2,949to - $ 3,949to - $ 4,949to - $ 7,949to - $ 9,949to - $ 14,949to - $ 19,949to - $ 24,949to -:$ 49,949to - $ 99,949to - $ 149,949over $ 1.49,949
74
2934
177317
1,4502,6663,683
23,08727,3387,8343,336
oooo22
101224
1582638140
oooo1.13
.63
.69
.45
.65
.68
.961.031.20
()
oo{)
4144366
III1,0451,674
472201
- - -. - - - - - - - - - .- .~ - -. - - - -. - - - - - - .-. - - - - - - - - --Total 69,962 592 .85 3,630
Source: D.B.S. 1966
Dairy Prociucts Associated with Non-Commercial Farms: Although only
21 per cent (14,762) of all the commercial farms in Saskatchewan had
sales of dairy products as part of their operations, they produced
94.1 per cent of the total value of these products sold from farms in
1966. At the same time, 58 per cent (9,l44) of all non-commercial
farms had sales of dairy products but their total contribution
accounted for only 5.9 per cent of all farm sales of dairy products in
1966 (see Tables 26 and 27, page 70).
-69-
DISTRIBUTION OF MILKING MACHINES
1966
21 ... 40
D§§33
Per Rural Municipality
o -10 =41 -80
II - 20 1181 -160
Scale in Miles
25 0 9C::; 5°~,u ,-,!we -' , I
Map 21Source: D.B.S. 1966 Datafor Rural Municipalities
-70-
TABLE 26
FAPJiSvaTH DAIRY SALES 1966
Classification
Census FarmsCommercial FarmsNon-Commercial Farms
Source: D.B.S. 1966
Total for ProvinceAll Activities
85,68669,96215,724
TABLE 27
Total withDairy Sales
23,90614,762
9,144
%withDairy Sales
282158
VALUE OF DAIRY PRODUCTS SOW FROM COIJINERCIALMTJ) NON-C01-1J1lIERCIAL FAR1vLS 1966
Classification
Census FannsCommercial FarmsNon-Commercial Farms
Source: D.B.S. 1966
Value of Products Sold
$15.380,090$14,469,180$ 910,910
%of Total Value
10094.15.9
On individual non-eonnnercial farms, dairy products may form an
important and necessary part of the operation, providing a cash income,
however small. But. as stated, their contribution to the total value
of milk and cream produced in the province is relatively insignificant.
Non-conunercial farmers in Saskatchewan are concentrated L~ census
divisions 9, 14, 15, 16. 17 and 18 (see Map 22, page 71) where in each
of these divisions one quarter of the farms are classified as non-
commercial. On average, 58 per cent of these non-commercial farms had
-71-
CLASSIFICATION OF CENSUS FARMS
SASKATCHEWAN 1966
•·dairyITD wheatcommercial commercial
t=++=t other 0 non-C±±Jcommercial commercial
Note: Circles are proportional tonumbers of census farms.
Scale in T,Tiles
25 0 25 50Iw wl ,
I
Map 22Source:D.B.S. 1966 Datafor Census Divisions
-72-
some sales of dairy products in 1966 (see Table 26, page 70); it there-
fore appears that much of the non-commercial dairying in Saskatchewan
is carried on in the northern part of the Park Belt, in the so-called
pioneer fringe.
Location of Manufacturing Plants: Traditionally, the location of
butter plants was determined by the source of cream, while the location
of plants for processing whole milk was determined by the local market.
These locations were influenced by the transportation facilities
(particularly development of a good road system and the use of trucks),
population distribution, and systems of farming prevalent at the time
of construction. Many small creameries have ceased. making butter in
the last five years including those at Watrous, Biggar, Shellbrook,
St. Walburg, Oxbow, Medstead, Kamsack, Esterhazy and Kelvington. Cream
is now picked up by truck at depots in smaller centres and transported
to larger centres for processing, making the small creamery obsolete.
Larger plants, m.ulti-purpose in nature, have the advantage of being
capable of processing a full range of dairy products from both whole
milk and cream. Dairy products plants are located in the larger urban
centres but show strong correlation with the Park Belt (see Map 23,
page 73).
The Sales Pattern: The per capita consumption of all dairy products in
Saskatchewan for May 1966, based on the monthly national average in
1966, was 7.3 gallons (all products expressed as milk equivalent) .32
32t'Dairy Facts and Figures at a Glance ft , (Ottawa, 1968), p. 16
-73-
LOCATION OFDAmy PRODUCTS PLANTS
1967
• Esle van
[]eYburn
o Multi-product plant
D Butter manufacture pla.nt
c=J Milk processing pla.nt
L
GSSinibOia
B.iggar B
-":'Me.rVin 8' .6..M ~ •. IpaWlnLIOYQmioster.Shellb roo k r0E
• L0ri nee Albert
~BaftlelOrd Mellnrl O. ;;-iSdale Gfcfsin~I ~ ~BayuniiO &oSlhetn
Baska InonOumbold! j.'(,o ri'.~al\~.w... ad~~V~ preOeCe)(li~~
Wynya rtJ • canQl',
~e II iher8YOrklBMcNUtl
~genbG'rMelViue~
MOQse ..JawO rf5J9inWo1del\J... tB{.o.ad.. VieOWift Curretll ~ Moosomin •
Bap,e Creek
Scale in Miles
25 0 25 50"1wE::::-.::::JIwI-===lI~===::l1 Map 23
Sources:Processors, Distributors andDepartment of Agriculture,Regina
-74-
According to this consumption ratio, farmers throughout the Park Belt
and in outlying areas of the grassland region especially near the urban
centres produced milk considerably in excess of farm family needs for
¥~y 1966 (see ¥~D 24, page 75). Farms north of Saskatoon produced
106 gallons per capita of farm population, the highest production for
the province.
'VJhole milk sales, as indicated previously, are related to the
urban ma.rkets and the milk sheds (see 14ap 25, page 76) are highly
localized, their areal extent depending mainly upon city size, and upon
transportation facilities and other production factors. But beyond
these urban milk sheds, i.e. over most of the province, fluid milk is
converted, by separation, into cream and it is the latter which is
marketed. Hap 25 on page 76 indicates clearly that the dominant zone
of creara production and sales is coincident with the Park Belt; only
rarely are cream production and sales significant in the grassland
zone.
The distribution of cream production (see Map 25, page 76) shows
a broad similarity to the distribution of swine (see Map 26, page 77).
This may be explained by the fact that the separation of cre~n from the
whole milk leaves about 90 per cent of the volume at the farm in the
form of skimmed milk. The latter may be utilized as feed for pigs (or
other livestock) and thus makes a significant contribution to the
system of mixed farming which is typical of much of this area.
-75-
MILK PRODUCTION PER CAPITA OF FARM POPULATION
MAY 1966
In Gallons
11101 - 120 EfI3 41 - 60
== 81 - 100 § 2l - 40=61 - 80 D 0 - 20
L
Scale In Miles
25 0 25 5(1,J
he """ ! IMap 24
Source: D.B.S. 1966 Datafor Rural Municipalities
-76-
VOI1JME OF MILK AND CREAM SOLD
THROUGH COMMERCIAL CHANNElS
MAY 1966
Per Rural Municipality
over 100,000 Ibs.cream sales predominate
over 100,000 Ibs.whole milk salespredominate
under 100,000 Ibs.
€3 ~YbUrn f------I
D§
=
~....Regin.aoseJaW.C::==~IIIi~==~
.1IIIii!~:::::~r ren t
Scale in Miles
25 0 25 50he~-=-wlt==f::='=:::::;11 Map 25
Source:D.B.S. 1966 DataOriginal Computer Sheetsfor Rural Municipalities
-77-
DISTRIBUTION OF SWINE
1966
In Thousands perRural Municipalities
• 8 - 16 81 - 2
=4- 8 00-1tm 2 - 4
Scale in Miles25 0 25 50",_~_wll:::::====::I:::'=:::::::;11
Map 26Source: D.B.S. 1966 Datafor Rural Municipalities
-78-
Conclusion: In Saskatchewan, milk and cream production, being
associated with mixed fanning, is more widely practised in the Park
Belt than in the grassland regions.
As well, dairying is rarely practised apart from other farm
enterprises. The areas around the urban centres containing the major
markets however, show a considerable degree of specialization
especially in the production and processing of fluid milk. A more
detailed examination of one of these areas - the Saskatoon ndlk shed
follows in chapter four.
-79-
CHAPTER 4
THE SASKATOON lvIILK-SHID
It has already been shown that milk production is greatest with
in the urban milk-sheds, a not unexpected phenomenon. Further, the
area around Saskatoon displays the greatest degree of dairy special
ization to be found in the province. A detailed analysis of the
characteristics of the Saskatoon milk shed it is hoped will demonstrate
the effects of single factors - including historical factors,
institutional policies, transportation facilities, and soils on land
use and the use of labour and capital. Such factors do not act
separately but interact, responding differently both over time and to
market stimuli. It is anticipated that this appraisal of the most
highly specialized dairy farming area will demonstrate the general
characteristics of all Saskatchewan milk sheds. Certainly the most
important factor assisting in the dai~ specialization is that of size
of urban market but it is interesting to note the approxirra.te
conjunction of parkland conditions to large urban populations;
certainly the latter is important as indicated in Map 21 (Distribution
of Milking }mchines~ page 69).
-$0-
Geographical Extent and Character of the Saskatoon V.J.lk Shed: The 244
fluid milk shippers in the Saskatoon shed in 1968 were clustered mainly
north and west of the city although there were two outlying areas
around Guernsey and Annaheim (see .Map 27, page 81). Non-contiguous
production areas are not uncommon characteristics of milk sheds how-
ever, as Durand discovered in his studies: ttThe theoretical circular
milk shed rarely occurs - the usual shed is higluy irregular in shape -
a few oval rather than circular. Many contain outlying non-contiguous
producing areas. u33 Discontinuity of this type may be related to
various conditions including, for example, transportation routes and
soil differences.
Since data is available only for rural municipalities. the
Saskatoon milk shed for purposes of analysis is here defined as the
eight municipalities surrounding Saskatoon with more than a single
milk-shipper. The municipalities satisfying these conditions are:
Rosthern, Laird, Park, Warman, Aberdeen, Vanscoy, Cory and Dundurn
(see Map 2Y, page 81).
The number of milk cows in the whole province has been progress-
ively decreasing over the last twenty years (see Table 28, page 82),
but the rate of decrease in the Saskatoon shed has been less than the
provincial decline. This decline in the number of milk cows in the
shed did not parallel thegrowth in the population of Saskatoon, the
latter suggesting not only an increase in market but also an increase
in the cow population. That the last did not occur is explained by the
33Loyal Durand Jr., t~ajor Milksheds of the Northeastern Quarterof the U.3.A. u ,Economic Geogranhy, (1964 ). p. 11
aird !~:~ S the rn j __, l
kI
•
'-
.....,An naheim x
•
•x •• Guernsey
•••
•
L-
'--
•
'---------- I•~ ..
L-:
'-
•
DISTRIBUTION OF FLUID MILK PRODUCERSIN THE SASKATOON MILK SHED
1 I]
J
•
o 6 12 ., . ..' • I Sources: Da~ry Pool and Departmeflt Ma 27
in Miles of Agriculture, Saskatoon P
~
, \,--- '.. ,,". --" .1· . I," ...... xr· ','. •• RoS hern/I • I:.. /
/ ,,'I ,
" •• • ~ " Each dot represents one producer." ••• ••• \ Broken line marks the margin of the Milk Shed
,'. \,... ,
" • •• •• I,. . .. ,'. .. . .. ". \. . .. . \, ..,
Park... •••• ~. • \.: :.,, .. .. . ... '.. ' • • •••••: •• • I
"" .:... ... .'Ie •• • • ••••• • x4berdeten, . ... ,
I ••• \I. ..... \I • • • •• ,I •• • I'r----,' • • ./" • ... ---"'_ .......... Vlar.man.· ----- .......
'... • • ,'Cory.. .,• • •• • • i
sq~i1h. • • \ 1Aberdeen I · I I I I., x. /- -~-- --: •• Saska lbo, 1 I
" .....,,' ,~ . \---* ,. ,..... _, • I
••• IE~ral• •••
• I• I.. . . \,
Dundurn \.,I ' 1W Va n.sco"y 1\,' I
,. • I I I~ '---- .,,/\ ----
-82-
fact that this larger market was supplied by using fewer but more-
productive cows; as well some fanners chose to specialize and market
whole milk instead of cream as they had done previously.
TABLE 28
CHANGES IN POPULATION OF SASKATOONAND IN THE NUNBER OF Iv1ILK CO~v'S
IN TIlE SASKATOON l'IILK SHED1931 to 1966
Year Populationof
Saskatoon
of):J
Changel-tilk COliS
inSaskatoon
Shed
Of10
Change:Milk Cows inSaskatchewan
of/0
Change
1931 43.291 17,463 480,2861941 43,027 .6 19,783 + 13~3 572,7281951 52,268 + 21.5 17,988 - 9.1 401,3171956 72,858 + 39.4- 15,425 - 14~3 272,2261961 95,526 + 31.1 14,187 - 8.0 241.,1131966 115,892 + 21.3 11,089 - 21.8 153,819
Source: D.B.S. for selected years.
+ 19;2- 29.9- 32.2- 11.5- 36.2
In spite of a relatively large fluid market, fanners around
Saskatoon have been cautious about entering the specialized fluid
trade; obviously, not all could enter the fluid milk market even if
they so wished; both the limit of the market, and costs of facilities
prevent this. However in 1967, officials of the Dairy Pool and
Deparunent of Agriculture in Saskatoon found it necessary and expedient
to encourage and assist four farmers near Annaheim, who had successful
small enterprises, to advance to specialized production in order to
guarantee an adequate supply of fluid wilk for the expanding Saskatoon
market. In the geographic area of the Saskatoon milk shed," cream-
-83-
producers (who represent the less specialized dairy farmers) exceed
fluid milk producers by a ratio of 2.7 tQ 1 (i.e. 734 to 273 farms
see Table 29).
TABIE 29
DAIRY SALES AND PRODUCERS IN SASKATOON SHEDCOMPARED wTrH THE PROVINCE }1AY 1966
Saskatchewan Saskatoon Shed
No. of Commercial Dairy FarmsFarms with Sales of
Dairy Products ---------Milk Sales in Pounds --------No. of Milk Producers -------Average Pounds per Producer -Cream Sales in Pounds of ;MilkNo. of Cream Producers ------Average in Pounds of l-tIilk
per Cream Producer ------
Source: D.B.S. 1966
592
19,68515,052,660
1,,06614,120.7
49,225,20017,056
2,886.1
%of Total
34.4
5.431.925.6
5.44.3
Actual
204
1,0644,806,300
27317,605.5
2,699,400734
3,677.6
Relative to the province however, dairying was concentrated in
the Saskatoon ~tilk Shed in May 1966. Although it had only 5.4 per cent
of all provincial farms reporting dairy sales, it included 25.6 per
cent of all the fluid milk producers; 31.9 per cent of all the fluid
milk produced; and 34.4 per cent of the farms which qualified under the
census, as specialized dair,y farms.
-84-
The Dairy Farmers: This concentration of dairying in the Saskatoon
shed relative to the rest of the province may partly be explained by
traditions handed down from one generation to the next, as is typical
in certain groups. An examination of family names of the shippers
indicates that over half have surnames generally associated with
Mennonites (see Appendix E) and substantiates a local opinion that
Mennonites tend to stress dairy fanning and contribute greatly to the
success of the Dairy Pool in Saskatoon.34
Transportation: The present highway network provides adequate means
for transporting fluid milk to Saskatoon by refrigerated bulk tankers
from considerable distance (see Map 2~, page 85). Charges for shipping
milk to the Dairy Pool in Saskatoon are as follows: one to ten miles
@ 24¢ per cwt.; eleven to twenty-four miles @ 34¢ per cwt.; twenty-five
to seventy-five miles ;@ 44¢ per cwt. Most of the current producers are
located over ten but less than fifty miles from Saskatoon. Producers
in outlying parts of the shed around Annaheim are a little over
seventy-five miles away but are granted the same rate on condition that
they provide a sufficient quantity of milk to make hauling economically
feasible.
Cream, representing about one-tenth the bulk of fluid milk and
having a higher unit value, may be transported economically over longer
distances and if convenient across provincial boundaries; as well, it
requires no specialized transportation equipment since it is shipped
34personal Communication, ]vir. J. Campbell, Quality ControlSupervisor, Dairy and Poultry Pool, Saskatoon.
&V1,
No
MunicipalGrid Road
~ Milk Shed
,--,t1II
'''',
MAJOR ROADS IN SASKATOON AREA
Oiled-Surface
BituminousSurface
27
..i-'2.0-=-
Hw
Map 28
1
:- --- -------T",---_r------------.-----------~.;----..J: I : :I I I 1
f I 1 1I 1 ..... ~ ----------1--- ... -..;-- ... --: I I ,
I 1 I II I I
1 : I'..-. '--Annabeim •
I 11 II 1I II I
: 1
Hwv 5 .H umbol.dt
, I, ,I
iI________J
---',' I";__-__ .1 I
, II rII
""
II
I
---- I----- -- -- -t-- -- --- --t--\• I
I1__ - _
I,,
Source: Department of HighwaysRegina, 1968
iIII,III
~i ~ I Hwy 5, i f-r---u--u __ u nul +__ -uu~:-'l ) q) ) "d;" " '-l ~, ~I 1 I ; ,'" < <. Fe ( I
I,II,•t
I....I11,I_________ J .. .-'- --- -- _..._...._.. ,.- -'- - - --
('I!v
,,,,________ .~- ..... - -- -i - - ..... -1- - I
IIIII
III1I.,
I
I
II
--~---.:-
-86-
in cans. Creameries therefore gather cream by truck from over one
hundred miles and in the northwest fringe area, cream is shipped across
the provincial boundary to Bonnyville in Alberta. Although no special
charge is made for transportation, the price paid to farmers reflects
this cost.
Soils as a Factor Affecting the Distribution of Milk Cows: Changes in
the milk cow population over the last thirty-five years has occurred
unevenly throughout the milk shed ranging from an 84.2 per cent decline
in Dundurn to a 30 per cent increase in Warman (see Table 30). A
TABLE 30
LOCATION OF IvIILK CO\'5 AND SOIL TYPES IN THE SASKATOON SHED
RuralMunicipality
Number of I-lilk Cowsper
Rural Municipality
%Changeover
35 years
Soil Type(Texture)
DundurnCoryVanscoyParkAberdeenWarmanRosthernLaird
1931
1,3762,6182 ..4742,4121,5782,8082,4211,776
1966
218541635
1,2001,3433,6512,3221,179
- 84.2- 79~3
- 74~3
- 50.2- 14.9+ 30.0- 4~1
- 33.6
sand - light loamsand - light loamlight loam - loamsand - light loamclay - clay loam.loam - light loamloam - light loamloam - clay loam
- - ~ - - - - - - - - - - -All Sask. 480,286 184,039 - 60.
Source: D.B.S. for selected years and Map 29, page 87.
&.-.JI
t. __
SOlIS OF THE SASKATOON AREA
(T~xture and Topographic Phases)
fI/IIIIIIIII1I' Outer margin of the Milk Shed
0 loams [ill alluvium
§ sands, silts~
claysand gravels
I iI I
- - - - - - '- - - -- - .. - - - - - -- - - -1- - - - - -- - - - - - - --- - - - -l- - - - - - - - -I
II
Map 29
ROLLI N
Reconnaissance SoilSurvey Report #12
,,,,--~'
I
II
o L LIN G:
~ B ,.:~i, ..
,-------'i_____ J -
~
-88-
comparison of location of these changes with soil types, reveals that
the sharpest declines occurred on the light loam and sandy dune areas
to the south and west; the greatest increase came about to the north
and north-west of the city, where gently undulating heavy 10aTJ1s and
clays are found (see Map 29, page 87). This shift in location is
perhaps indicative of the changes that have occurred in the care of
milk cows. In the 1930's many farmers regarded dairying as a sideline
and provided minimal care to the anirr~ls whereas, today a fluid milk
prcxiucer is a specialist. He provides his cows with intensive care for
which he needs top quality fodder. To produce this, the most useful
land is that which will give maximum responses to soil and fodder
management involving, as it does, the expense of fertilizers and
machinery. Hence. the shift from the lighter sands to the heavier
loams and clays may be the result of this relationship. However some
dairy farms are located on the lighter sandier soils. On such soil,
manure obtained from the dairy operation is ~particularly important
item in land manage111ent. In a study of twenty-eight dairy enterprises
in 1966, nineteen of which were located in the Saskatoon shed, the
manure value was estimated to be $294.00 or 2 per cent of the gross
dairy income.35 ¥..r. A. Miller, a successful dairy farmer on light soil
on R. R. 5 Saskatoon, south of the city, considers manure to be of
considerable importance in the land management programme for his mixed
fanning operation.36
35Fluid Vdlk Stud 1966 - Regina and Saskatoon Area ,Economic andStatistics Branch, Department of Agriculture, Regina, June 1967).
36personal COnIDlunication, }lfr. A. ltliller, President of Dairy Pool,Saskatoon.
-89-
Processing and Distribution of DaiEY Products in the Saskatoon Shed:
Currently, the Dairy Pool has about 210 fluid shippers. They provide
all the fluid milk requirements for the retail trade of Purity Dairy in
Saskatoon, a subsidiary of the Pool, and of the Co-Operative Creameries'
Saskatoon Branch. The latter t which is the largest retailer of fluid
milk in the city, purchases wholesale from the Dairy Pool, milk for its
fluid trade, cottage cheese and ice cream production. Palm Dairies,
the other retailing company in Saskatoon, is supplied by its O'hTI milk
producers.
The dairy plants in Saskatoon are modern, automated multi-ourpose
operations. The head office of the Dairy Pool on 23rd St. West,
completed in 1961, has modern office space, storage equipment for
wholesaling milk, and production facilities for manufacturing butter,
cottage cheese, milk powder and ice cream. 'rhe Saskatoon Branch of the
Saskatchewan Co-Operative Creameries, completed in 1963, has a combined
office and production facility in a modern building on Ontario Street.
It, too, is equipped to carryon a full line of dairy operations
including processing and packaging of fluid milk, manufacturing ice
cream and cottage cheese, and is capable of processing over l~ million
pounds of butter annually if the cream is available. Palm Dairies,
located on First Avenue in Saskatoon, also operates a mUlti-product
dairy business inclUding fluid milk processing and manufacturing of
butter, cottage cheese and ice cream.
At present, the processing and distribution of dairy products
provides employnlent for about four hundred people in Saskatoon as
indicated in Table 31, page 90.
-90-
TABLE 31
El"IPLOYMENT IN SASKATOON DAIRY PLANTS 1968
Saskatoon Co-Op. CreameriesSaskatoon Dairy PoolSaskatoon Purity DairyPahi Dairy, Saskatoon
Source: Manufacturers named
56)60)
168
116
100
An increasing volume of fluid milk is currently marketed through
stores and supermarkets. Roughly half the total fluid sales in
Saskatoon reach the market through such outlets. It should be noted
that some of the advantages of an assured and regular market are lost
with the decline of home deliveries and are not compensated for by
sales through stores.
Utilization of Canital and Labour in Dairy Farm Operations in The
Saskatoon Shed: The effectiveness of capital and labour employed in
dairy-farm operations was examined in a 1967 study of thirteen dairy
operations in Saskatchewan, ten of which were in the Saskatoon shed.3?
While the value of production from dairying accounted for 84.6 per cent
of the value of total farm production, the ratios of labour and
invested capital employed for dairy production were 67.2 per cent and
63.2 per cent respectively (see Table 32, page 91). The study
indicates that relative to the percentage utilization of capital and
labour, the dairy portion of these farnls produced a proportionately
37Fluid Milk Study 1967, Department of Agriculture, (Regina),p. 4-6.
-91-
high return. Agricultural economists, however, consider that none
of the best indicators of the economic efficiency of the milk producer
is the net return to labour and management received per cow". 38
TABLE 32
UTILIZATION OF RESOURCES ON DAIRY FARNS INTHE SASKATOON AND REGINA SHEDS 1967
Animal UnitsLabour (Man Equivalents)Investment (Idvestock,
Machinery, and BuildingsValue of Fann Production
TotalFann
601.77
,$49;721$27,153
DairyPortion
32.231.19
$31,444$22,971
%DairyPortion
53.7%67.2%
63~2%
84.6%
Source: F~uid Milk Study 1967, Department of Agriculture, (Regina),p. 4-6
This being the case, there is apparently a considerable disparity in
efficiency among dairymen in the areas studied since the return to
labour per breeding animal ranged fram $83.90 to $320.53 (see Table 33,
page 92). This fact emphasizes the low degree of efficiency among some
producers even in the designated specialized areas. Therefore the term
tfspecialized dairy areau, as used in Saskatchewan, may be considered
only to represent comparative quality and" in this sense only, is
applied to areas which stand out above the provincial average in
production (see Table 33, notes band c, page 92).
38S. H. Barber, Dair)in~ Costs and Returns , Department ofAgriculture, '(Regina, 1965 , P. 6.
-92-
TABLE 33
RESOURCE UTILIZATION AND RETURNS IN DAIRY ENTERPRISESIN THE SASKATOON AND REGINA SHEDS 1967
Investment:Number of Cows per Far.mTotal Dairy Investment
Labour:Man Equivalents of Laboura
Hours of LabourjanimalReturn to Labour/hourReturn to Labour/$lOO investmentReturn to Labour/breeding animal
Returns:Total value of Dairy ProductionValue of Production per breeding animal
Range
24-53$17,429-54,027
.76-1.9750-145
$ 1.12-3.75$ 8.47-33.07$ 83.90-320.53
$13,357-36,900$ 514-876
Average of13 FarmsStudied
32.23b
$31,444.00
1.1997
$ 2.23$ 22.22$ 216.83
$22,971.00$ 7l3.00c
aNotes: One man employed for twelve months.
bAverage numb~r of cows per farm (with cows) for allSaskatchewan is 4.7
CAverage value of production per cow for all Saskatchewan is$100.00.
Source: Fluid Milk Study, Department of Agriculture, (Regina, 1967),p. 6
Among the costs of producing milk, two of the main items are feed
and labour which, according to the aforementioned study, accounted for
two-thirds of the total expenses (see Table 34, page 93). Hence the
most efficient operators find it advantageous to employ capital in
labour-saving facilities for milking, bulk-handling, stable cleaning
operations and for the production and storage of feed. One approach to
labour and related problems is the formation of family partnerships as
-93-
in the ease of two of the largest dairy operations in the Saskatoon
shed, Nickel and Sons at Borden and Haight Brothers at Floral. The
latter, whose dairy facilities include bulk feed storage, pipeline
milkers and automatic stable cleaners (see Photograph 1, page 94) is
representative of the more specialized producers while the facilities
of the Miller Farm, (see Photograph 2, page 95) represents a dairy
specialty which has developed on a mixed farm.
TABLE 34
COSTS OF PRODUCING MILK IN SASKATCHEV/AN 1967
Cost Item
Feed, Pasture, BeddingLabourNon FeedInvestment ChargesDepreciation
Total Cost
Cost per ewt.
$2.46$1.50$1.20$ .54$ .30
$6.00
%
41%25%20%
9%57b
100%
Source: Fluid lillk Study, Department ofAgriculture, (Regina, 1967), p. 10
The Development of a Marketing S~tem in the Saskatoon Milk Shed: The
present marketing system dates back to 1926 when producers became
concerned about fluctuations in the milk market. During the season of
low production there was a ready market but in summer, when production
was high, a shipper might be forced to take his milk home and feed it
to his animals because the day's demand had already been provided by
others. Farmers, too, questioned the honesty and integrity of the
processors. Therefore, encouraged by the success of wheat pools, they
-94-
DaiI"iJ Facilities on the Haight Brothers f Farm at Floral
Photograph 1
Modern one-story dairy barn with trench silofilled and sealed in the foreground
Interior facilities include "comfort stalls", .automatic stable cleaner, and pipeline milker.Pipes for the milker are located above the
row of purebred Holsteins.
-95-
Dairy Facilities on the Alvin Miller Fann, R. R. 5 Saskatoon
Photograph 2.
Main dairy barn is a converted horse barnwith a modern milk-house in the foreground.
Interior facilities include stanchion stalls,unit milking machines, improved lighting andventilation. Pictured also is a newly born
purebred Holstein calf with mother.
-96-
began to consider some form of co-operative milk pool. They retained a
Saskatoon lawyer, Walter Caswell, and sent him to Minneapolis to study
a producers' milk marketing association there. On his return a
provisional board wa.s set up and eleven milk producers applied to the
Saskatchewan Legislature for an Act of Incorporation. On April 1,
1927, the "Saskatoon Milk Pool" was opened for business. About liS
farmers signed three-year contracts pledging to deliver all their milk
to the pool. At first the Milk Pool conc'entrated on selling raw milk
and cream to local dairy processors but there was still the problem of
sur-plus during the season of high production. To deal with this
surplus the pool bought a milk powder machine - the first in Western
Canada - and sold, under contract, the powder thus produced to
J. H. Speers Seed and Feed Co. for stock feed.39
The separating of surplus milk to obtain skim milk for the powder
machine left a large amount of cream to be churned into butter. To
make this a profitable operation, a much larger volume of cream was
needed so cream shippers were invited into the expanded Dairy Pool.
The system of payment developed by the Pool is based on a blended
pricing system. No quotas on production are established; rather,
producers who are accepted as fluid milk shippers are guaranteed a
market for all of their production. The shipper's acceptance as a pool
member is conditioned by his ability to produce quality milk on a
regular monthly basis. Once accepted, the shipper's payments are based
according to the total percentage utilization of whole milk in the
fluid and surplus market and it is a function of management to dispose
39A Brief Look at the DairPoultry Pool, Saskatoon, 1961 •
-97-
of the largest possible portion of the milk in the fluid trade.
Participants also receive a profit bonus based on the yearly operations
of the Pool and on the quantity of milk they ship. Cream shippers who
do not participate in the pooling price system receive a profit bonus
based on the yearly operations and on the quantity of butterfat which
they ship.
This system is based on a co-operative philosophy that, by
pooling, all shippers can benefit from the top price market; it thus
overcomes the restrictive features of the quota system which reserves
the fluid market for a relatively few producers. This system also has
the advantage of encouraging an adequate supply of fresh milk to meet
local needs; shippers are encouraged to produce some surplus in the
knowledge that they are guaranteed top price for at least a portion of
their milk.40
Conclusion: Dairy farming in the Saskatoon milk shed, compared with
that in the province as a whole, has a considerable degree of special-
ization which has been encouraged by a number of factors. The market
for fluid milk, as reflected by the population growth of the city, has
been constantly increasing over the last thirty years and has attracted
some mixed-farmers to specialize in milk production. Indicative of
this specialization, is the farmers' utilization of better quality milk
cows, illustrated by the fact that the expanding market is supplied by
a declining number of milk cows. And equally important, is the unique
40personal Communication, !vIr.E. Gabert, Secretary-Treasurer ofthe Dairy and Poultry Pool, Saskatoon.
-98-
system of market pooling, which has generally encouraged and rewarded a
rational and persistent expansion of production in the Saskatoon milk
shed.
These characteristics apply as well, wholly or partially, to
other urban areas. Common to the milk sheds of Regina,41 Prince
Albert, North Battleford, Yorkton and Melville is a combination of
factors including: Park Belt conditions, mixed farming practices,
controlled marketing systems and transportation facilities which
combine advantageously to produce specialized and concentrated dairy
regions not unlike that of Saskatoon.
4lAlthough Regina itself is not in the Park Belt, the milk shedstretches eastward into it along the Qu'Appelle Valley (see Map 25,page 76).
-99-
CHAPTER 5
THE SPECIAL CHARACTERISTICS OF THE DAIRY INDUSTRY
IN SASKATCHEWAN
Each province attempts to develop, as far as possible, its
agricultural (dairy) resources and internal markets. As a result, the
state of a provincial dairy industry reveals the amount of encourage
ment and assistance the provincial departlllent of agriculture offers as
well as the nature of the resources available, the size and location of
markets, the transportation facilities and distances to be overcome,
and the traditions and preferences of the farmers. In combination,
these factors have produced characteristics of the dairy industry
peculiar to Saskatchewan.
The Position of the Saskatchewan Dairy Industry: The value of dairy
products sold in Saskatchewan in 1966 was only 2.10 per cent
($15,380,090) of the total provincial value of all agricultural
products sold amounting to $731,454,130. This portion fell consider
ably short of the national average of 14.4 per cent and was much below
that of Quebec, where value of dairy products accounted for 42.2 per
cent ($162,395,560) of all agricultural products sold which, in Quebec,
totalled $384,485,180 (see Map 30, page 100). Not only is the
Saskatchewan dairy industry relatively small in regard to its con
tribution to the total provincial value of agricultural products sold,
Circles are proportional to the valueof agricultural products sold.
o 375. .
in Miles
~ol'
Source: D.B.S. 1966Data for ProvincesMap 30
VALUE OF AGRICULTURAL PRODUCTS
SOID IN CANADA 1966
"'-', ... ,
------
,,,,,,,,
",,,,,,,,,.'
\~"'''', ...., ", ....,~,,\ ...........
'~ '"
'J..."~II
I
-101-
but it is the only provincial dairy indust~ in recent years, 1965-68,
to exhibit significant decreases in the total volume of milk produced
(see Table 2, page 2) and in the value of milk produced (see Table 3,
page 3) of 15.8% and 9.7% respectively. Moreover, butter production
has slumped rapidly in Saskatchewan since 1961 (see Table 35).
TABLE 35
CR.EM-1ERY BUTTER PRODUCTION IN SASKATGHIDvAN 1951 to 1966
Creame~ Butter Producedin Pounds
1951
28,971,772
1961
28,011,631
1966
19,030,568
Source: Annual Report, Department of Agriculture, (Regina, 1967).
The decline in milk and butter production is illustrated in the
trend lines in Figure 2 (page 102) which point out a downward-trend
that has been progressing for several decades but which has accelerated
since 1961.
Characteristics of Marketing and Production of Fluid Milk: Fluid milk
production and consumption in a province where the farm. population is
large and disperseli, where small hamlets are remote and scattered and
where urban centres are relatively arnall, illustrate special character-
istics relative to the nation as a whole. For instance, per capita
fluid milk sales in Saskatchewan in 1966 of 206 pounds per person were
the lowest in Canada, falling short of the national per capita average
by 64 pounds (see Table 36, page 103). As well, Saskatchewan with the
-102-
TRENDS IN PRODUCTION AND UTILIZATION OF MILK
IN SASKATCHEWAN 1921 - 1966
v~ fA L
~~
/r---- ~r---
'"V ....l.l~ ~
.~~/ "'-<9.--• tlI~/ ~~
G~ ~
----'"~K '"~ / \ '\/
1/~V If~/
/ \ MlY1\V V
,~
N~I~'~'J ~
___ V\
"",V "/ Y ..-/ // \/
/ / \V ~/
V \fj \Q;-'<t
v/ \,v/
0
V 1\ V
/0
30
2
2oao
1000
900
800
700,.......~600oM~50oCI)
~
"C Jfo 0Q)COCO~ 300
~t~2005 :;j
"CbOOo ~7P.o~ rlQ)~
CJ') ..........
/00
co '10§ 80
o 70P-4
13 60
0) 505
OM~ lfo
i!
I" 21 I' 26 ''131 1t:t36 "IfI
Figure 219 'lf6 /951 19S6 /961 /906
Source: D.B.S forSelecte Yea
-103-
TABLE 36
SALE OF FLUID }tI!LK IN CANADA 1966
Ma °to a. r~ mesQuebecOntarioManitobaSaskatchewanAlbertaBritish ColumbiaCanada
Populationin OOO's
1,4815,7816,970
963955
1,4631,874
19,487
Fluid Sales000,000 Ibs.
3801,4642,097
247197359511
5,255
Per Capita
257253301256206245273270
Note: aprince Edward Island, Nova Scotia and New Brunswick
Source: Dairy Facts and Figures, (Ottawa, July 1968). p. 9
largest percentage of population on fams of any province, has the
highest percentage utilization of milk on farms (see Table 37).
TABLE 37
FARM UTJLlZATION OF FLUID MILK 1966
Province
Ma °to a• r~ JJD.esQuebecOntarioManitobaSaskatchewanAlbertaBritish Columbia
Populationon Farms
138,602507,869498,025161,662281,089281,58391,443
%of Populationon Farms
7.02%8.79%7.16%
16.78%29.43%19.24%4.84%
%of Fluid Milkused on Fanns
11.0%6.1%6.9%
16.1%27.4%16.2%
5.6%
Note: aprince Edward Island, Nova Scotia and New Brunswick
Source: D.B.S Dairy Branch, 1967
-104-
Moreover, the sparse nature of the population and large distances
separating communities encourages many farmers to keep a cow or two in
order to ensure a supply of fresh milk for their families and perhaps
their non-farm rural neighbours (see Note b, Table 38, page 105).
Another characteristic of the milk market in Saskatchewan is the wide
use of powdered am condensed milk ill the small and remote settlements
where fresh milk is scarce.42 Mereover, the urban population (in towns
and cities over 1000) which normally represents the concentrated fluid
milk market was only 49.02 per cent (468,327) of Saskatchewan IS total
population (955,000) in 1966 compared to an urban population of 74 per
cent nationally (see Table 38, page 105). As a result of its
restricted size, the urban population of Saskatchewan provides a fluid
market for only a relatively few milk producers (536 in twelve major
milk sheds in 1966) who, with the assistance of the Provincial
Department of Agriculture, are progressing and specializing as is
common in all advanced dairying areas; h0wever in Saskatchewan, these
producers stand out because of the general lack of dairy specialization
in the province. Until recently, Saskatchewan had relatively few
specialized milk coW's. As late as 1966, of the 153,819 cows milked,
only an estimated 25,000 were specialized <dairy ani.maJ.s and of these
only 7,500 were purebred.43 Recently however, farmers are using more
specialized. an1Jb.als, a fact affecting both the total number of milk
42personal Communications Dec. 1968: Postmasters at the ~following small centres estimated the percentages of households depending on powdered or condensed milk as follows: La Ronge SO%; BuffaloNarrows 50%; Claydon 50%; West Poplar-Killdeer 20%.
43personal Communication, J. D. Rennie, Dairy Specialist, (Regina,Dec. 31, 1968).
-105-
cows and the total milk production.
TABLE 38
POPULATIOl'l OF CANADA 1966
Province or Territory
1'-1a.ritimes C
QuebecOntarioManitobaSaskatchewanAlbertaBritish ColambiaTerritories
aUrban
1,057,5684,525,1145,593,440
646,048468,327
1,007,4071,410,493
18,362
bNon--Farm
781,139762,164885,735157,146207,375178,198377,984
24,666
Farm Rural
136,051493,567481,695159,872279,642277,59885,197
92- - - - - - - - - - - - - - - - - -- - - - - - - - - - - - - - - - - -Total 14,726,759 3,374,407 5,288,121
Notes: aCentres of 1000 and over
bNon-FarraRural - people in small centres of less than 1000 orcountry but not on a census farm
cNewfoundland, Prince Edward Island, Nova Scotia, New Brunswickd .
Yukon and Northwest Territories
Source: D.B.S. for 1966
In recent years, fewer milk cows are being kept on fewer farms
(see Figure 3A, page 106 and Figure 4A, page 107); however fluid milk
production has remained adequate because good quality milk cows
(represented by cows on test in Figure 3B, page 106), are capable of
producing more milk. Dairy Herd Improvement Associations (see Table 39,
page 108) have encouraged the use of better animals by a testing
progrmrume carried out by the Provincial Livestock and Dairy Branch of
the Department of Agriculture. This service, costing the farmer a
nominal fee, involves testing and recording the production of each cow
-106-
MILK COWS IN SASKATCHEWAN
NUMBER AND CHARACTER
TRENDS IN CATTLE POPULATION
. .~. .1"11 Itj 2.1 /tj31 Itjlll ItiSt 19(,1
Figure 3ASource:D.B.S. forSelected Years
TRENDS IN MILK PRODUCTION PER COW/ /5_r-----------------,
/05
9S
8S
75
&5-
.55
o~
I •
191/1 19If' 19051 19S6 /96/ /966 Source : Dairy HerdImprovement Service
Figure 3B Regina, 1967
Note:Data for farmswith milk cowsunavailableprior to 1921
-107-
POSITION OF DAIRYING ON SASKATCHEWAN FARMS
TRENDS IN NUMBER OF FARMS
I'IO--r- ~-----__,--......,,/ "" '\v" '\
~v)" \~
// '~~/ "~
/ --£'ARMS '\'\~I Lt.-/',
I '>-1- ,_III'0 I- I
II
lfO~ ",II2o. I
Source: D.B.S. forselected ... years
Figure 41..
TRENDS IN CASH RETURNS
-:·-·
IDo,~
--···
I.~
~-~
Figure 4B
'<III "~,I
'9"" I'"~ Source: D.B.S. forselected years
-108-
and by evaluating the results, the farmer is able to cull his herd.
TABLE 39
DAIRY HERD ThIPROVEI:{t~NT ASSOCIATIONS IN SASKATCH~'WAN 1967
Association
AsquithCarrot River ValleyGrenfellMoose JawNortheasternNorthwestern
No. ofAnimalson Test
669553879859727671
Association
Prince AlbertReginaSaskatoonSaskatchewan ValleyViscount GuernseyTOTAL
No. ofAnimalson Test
935680583771441
7,768
Source: Saskatchewan Dairy Herd Improvement Services, (Regina, 1967),p. 3
Amore specialized testing programme called R.O.P. (Record of
Production) is provided by the Federal Government for purebred herds
only. In 1967, thirty-eight Holstein, two Jersey, three Ayrshire and
four Red Polled dairy herds were on R.O.P. testing in the Saskatchewan
milk sheds.
In addition, the Saskatchewan Department of Agriculture, through
its Livestock and Dairy Branch, conducts a mastitis control programme
in an effort to control infection among provincial dairy herds and
tested 1,598 cows in 1967. Also under the jurisdiction of the
Livestock and Dairy Branch, local units provide dairy herdsmen with
artificial insemination services. According to lvIr. A. ¥dller,
President of the Dairy Pool, the artificial insemination programme has
contributed greatly to improved dairy animals in Saskatchewan by
-109-
placing at the service of individual farmers, for a reasonable cost,
the best breeding lines available.44
The Nature of Small Producers: A distinctive feature of dairying in
all Prairie Provinces is the large number of farms producing under
50,000 pounds of milk per year (see Table 40). In Saskatchewan alone,
there are 12,765 such farmers who are mainly cream producers and they
comprise 53 per cent of all milk producers in the province. Unusual
TABLE 40
CLASSIFICATION OF FAR,tJlS ifn:TH DAIRY PRODUCE IN CANADA 1966
TotalFarmswithDairy
Produce
EstimatedCommercialwith DairyProduce
NonCommercialwith Dairy
Produce
CommercialFarms with50,000 Ibsor more
lililk/Year
CommercialFarms withless than50,000 Ibs~tilk/Year
Maritimes 11,552 4,005 7,547 3,513Q.uebec 63,813 28,953 34,860 28,953Ontario 45,136 26,804 18,332 26,804Manitoba 17,181 9,553 7,628 3,373Sask. 23,906 14,762 9,l44 1,996Alta. 26,109 J.h.,691 11,417 7,164B.C. 2,839 1,194 1,645 1,194Canada 190,535 99,962 90,573 72,997
492
6,18012,7657,527
26,964
Source: William Mackenzie, The Canadian Dairy Industry, ARDA Project#15033, (Aug., 1967), p. 22
too, in the national setting, is the fact that they are commercial
farmers stressing non-dairy operations. Unlike these small Prairie
dairymen, many small producers in Quebec and Ontario are dairy farmers
44personal Communication, Mr. A. Miller, President of Dairy andPoultry Pool, Saskatoon.
-110-
of marginal economic status (see ¥;ap 31, page Ill) and in Quebec alone,
they represent 34,860 or 55 per cent of all the milk and cream
producers. Therefore, while dairying is frequently just a small
segment of the total farm business on many Saskatchewan farms, it is
more often an economically marginal operation, in which milk production
is the major component of the total operation on many Quebec farms.
Production and Y.L8.rketing of Manufactured Dairy Products: Although the
total production of dairy products in Canada exceeds the total require
ment,s of the combined national and foreign markets, thereby leaving a
surplus nationally, individual provinces vary greatly in this respect.
In Saskatchewan, the manufacturing of butter is the largest
single user of milk produced and represents 46.6 per cent of the total
(see Map 32, page 112). Butter is mainly made in the summer when cream
production is greatest: the surplus is placed in storage against the
needs of the winter months when little butter is produced. In this
way, provincial butter production in 1967 satisfied consumer reQuire
ments of butter in Saskatchewan, leaving only a small surplus.
Provincial ice cream production slightly exceeded consumption while the
quantity of cottage cheese produced fell short of possible consumption
(see Table 41, page 113). In total however, milk produced nearly
balanced with consumers' use of dairy products in Saskatchewan in 1967
(see Figure 5, page 114). In other provinces however, especially
Ontario and Quebec, production considerably exceeded consumption. Some
of the resulting surpluses were absorbed by a small export market (see
Table 42, page 113) and special markets in other provinees. For
example, all cheddar and other cheeses marketed in Saskatchewan were
non-~a-a~~Li9~/
,,,,/,
",,I,,
I,,,,,,,
CLASSIFICATION OF FARMS II
~
.//
AommerCiaT
.-......._.....
~.......
I in Miles I
o 375 Map 31
Canada
bI-'I
e1rcles are proportional to the number ofpounds of milk produced and utilized.
6l\)I
Source: D.B.S. 1967Dairy StatisticsData for ProvincesMap 32
OF MILK IN CANADA
PRODUCTION AND UTILIZATION
- • - .. - -' _.,,- - --'-IIIIIII
I
~ oa:
1967
~~-
.\
,,,I
, I
I I
'I I J---l..-----l. l _
... ......
o 375• 1n Miles t
'~".-'\ .... " .....,l,,
II
;'-,
\I,
,.I,
II,
/1#
.~
"I,.I
II
II
II,
-113-
TABLE 41
CONSlINPTION AND PRODUCTION OF SEIECTED DAIRY PRODUCTSIN SASKATC~iAN 1967
Product
ButterIce CreamCottage Cheese
TotalConsumptiona
in pounds
16,097,5462,617,6431,538,104
PoundsProduced
16,255,5922,621,0001,268,000
Difference
+ 158,046+ 3,357- 270,104
Note: aBased on National average per capita consumption andSaskatchewan Population of 955,344 in 1966.
Source: Dairy Farmers of Canada and D.B.5.
TABLE 42
EXPORTS JJ.UJ DIPORTS OF SEI.ECTED DAIRY PRODUCTSCANADA 1967
ExportImport
Butter
559,5690.
Cheese
27,68323,669
EvaporatedMilk
7,290
~fuole
PowderedNilk
4,872
SkimPowdered
Milk
94,973
Note: aButter imported under special permit to be processed intomaterials for food preparation for export to United States.
Source: D.B.S. Dairy Branch, 1967
imported from other provinces or abroad; there has been no provincial
cheese production since 1954 because too few far.mers market manufac-
turing milk to make cheese production feasible. The existing markets
however, are not adequate to absorb the volume of powdered products
70
65
;=1 1,0.r-!
::s 55.....o SoCI)
§ '15
~ 'fa
~ 35
~ 30o;:l 25M
~ 20"tj
IS~
§ 10::r::
5
0
-114-
PRODUCTION AND CONSUMPTION OF ALL
MILK PRODUCTS IN CANADA 1967
Production
B.C. Alta. Sask. Man. Ont. Que. Maritimes
Notes:(1) Maritimes includes N.S., N.B., and P.E.I.(2) Total consumption is calculated on national per
capita average of 866.85 Ibs. of milk in 1967.
Figure 5Source: D.B.S. 1967
Dairy- Branch
-115-
being produced and national stocks of whole and skimmed milk powders
are mounting (see Appendices F, and G). The disposal of these sur
pluses is of considerable interest and concern to Saskatchewan milk
producers because powdered milk may be used in the manufacture of ice
cream, cottage cheese and reconstituted milk. Cur~ently in
Saskatchewan powdered milk is imported for manufacturing only to cover
short-term deficiencies in these items. However, on the basis of price
alone, powdered. milk (being subsidized by the Federal Government) could
compete very favourably with fluid milk to the disadvantage of
provincial milk producers.
Conclusion: In Saskatchewan, field crops dominate the fam economy and
produced. 86.5 per cent ($551,164,630) of the value of all agriculture
products sold in 1966, while the dairy industry produced a mere 2.1 per
cent ($15,380,090) of the value of all agriculture products sold.
Although its size is lindted and in some respects declining, dairying
nevertheless continues to have a place in the Saskatchewan farm
economy, greater perhaps than the monetary returns alone would
indicate. In this province, where choice of farm activities is some
what restricted both by natural and economic factors, dairying with
its long history, provides a tested alternative farm activity for some
small mixed. farmers and a few larger specialized ones.
For the few dairymen supplying fluid milk for the growing urban
markets, the sale of dairy products is a specialized business which has
been encouraged and assisted by the Saskatchewan Department of
Agriculture through the Livestook and Dairy Branch, the Milk Control
Board and the Manufacturers and Distributors.
-1l6-
On the other hand, small dairying remains a feature of many grain
and other commercial fanns throughout Saskatchewan where a few cows are
kept to ensure a milk supply because distance from the main centres
prohibits fluid milk distribution to the dispersed rural population on
anything like a regular basis. Of the 32,144 farms with milk cows in
1966, 42 per cent (13,527) had one or two cows, apparently kept for a
supply of household milk. Furthermore, a traditional feature of mixed
farming in the Park Belt has been a small dairy herd from which cream
is marketed. Of the 32.144 farms in Saskatchewan with milk COvlS in
1966, 41 per cent (13,144) had very small herds ranging from three to
seven cows, which vlere apparently kept for both home milk supply and
cream sales as well. From the present, right back to the earliest
times when dairying becarr~ a part of Saskatchewan agriculture, small
producers have been typical of the Saskatchewan dairy industry.
-117-
CHAPTER 6
FUTURE PROBLm4S AND POLICIES AFFECTING
THE DAIRY INDUSTRY
IN SASKATCH~'JAN
The future of the dairy industry in SasY..atchewan, with the
possible exception of the small fluid trade, is characterized by
uncertainty. Even fluid milk producers face increasing competition
from dairy substitutes - a problem which concerns all milk producing
areas to some extent. Of more immediate concern for the Saskatchewan
dairy industry is the future status of creanl producers. Currently
they face uncertainty because of their traditional nature - smallness.
Their fate rests with the Canadian Dairy COmTnission which has the power
to propose and implement federal dairy policies. It is contended that
if these policies are to be rational and meet the needs of Saskatchewan.
they must recognize the distinctive factors of physical geography,
population distribution., market, transportation and farming traditions
which have produced the present situation in the province.
Effect of Substitutes on the Fluid llilk Market: In spite of the
rational development of the fluid milk business in Saskatchewan
(described in earlier chapters), the possible future loss of the vital
market to synthetic milk or filled milk is of growing concern.
Synthetic milk is made from fats and oils other than milk fat,
-118-
combined with other food solids, excluding milk solids. Filled milk
replaces milk fat with other oils and fats. Significantly however, the
cost per quart of filled milk using a base of Class 1 fluid milk, is
not appreciably cheaper than Class 1 retail fluid milk because only
high quality oils will produce a marketable product that can attempt to
compete in texture, taste and nutritional value with the natural
product (see Table 43). Even with the use of expensive oils,
TABLE 43
PRICE COMPARISON OF FLUID, FILLfID AND SYNTHErIC NTIK 1967
RawProducts
Processingand
DistributionHargin
cents per quart
aConsumerP:rice
Fluid Milk at $6.00/cwt 15.47 12.0 27.47
Filled l-ulk Using-Fluid Milk 13.12 12.0 25.12-Manufactured Milk 6.81 12.0 18.81-Skim Powder (20¢/lb) 8.05 12.0 20.05
Synthetic Milk 9.36 12.0 21.36
Note: aThis price makes no allowance for a possible federal sales taxof 12 per cent that could be levied on filled and syntheticmilk.
Source: L. W. Barfoot, Ope cit., p. 27
manufacturers in the United States have met buyer resistance because
synthetic and filled mi.lk products have failed to meet an acceptable
standard in one or more of these respects. However research is under
, way and Mr. G. Mclaughlin, president of the Ontario Milk Marketing
-119-
Board predicts the production of a competitive form of synthetic milk
in three to five years.45
While Saskatchewan dairymen could provide the base for filled
milk and local processors (under special license) could manufacture it,
the production of synthetic milk would most likely eliminate provincial
participation because synthetic milk is a specialized product for which
only large food companies have sufficient technology, capital and
promotional facilities.
For the moment at least, the fluid market in Saskatchewan is
protected from external competition and remains secure. However, it
would be highly unwise for provincial producers, processors and
legislators to ignore the fact that intense research and improvement
are taking place in such substitutes for dairy products.
Present and Proposed Policies Regarding Cream Production: Efficiency
of production is the principal objective established for cream shippers
by the Canadian Dairy Commission. The Mackenzie Report, developed as
background for federal dairy policy states:
nIt is not being argued that all cream shipment is a marginal anduneconomic proposition. Some of it is integrated with livestockfeeding on a scale which may make economic sense. But it shouldmake sense at unsubsidized prices for butterfat and to do that itmust be a supplement~ry enterprise using resources with very lowopportunity costS.f~
Specifically, the Report justifies, on the above grounds, the continued
45Federal Dairy Policy Changed, Country Guide, (April, 1969),p. 52
46william Mackenzie, The Canadian Dairy Industry, ARDA Project#15033, (Ottawa, Aug. 1967), p. 43
-120-
existence of only 10,000 medium to large cream shippers, in all three
Prairie Provinces, who market over 48,000 pounds annually. On such
criteria, 21,883 or 93 per cent of the present cream-producing units
in Saskatchewan are too small (see Table 44). To hasten their
TABLE 44
CLASSIFICATION OF HILK M1J) CREAl·I PRODUCERSIN SASKATCIOOiAN ACCORDING TO
VOLUJYIE OF SALES 1966
FluidShippers
CreamShippers
ManufacturedShippers
TotalShippers
o - 47,999 Ibs.48,000 - 95,999 Ibs.96,000 +
Total
1959
363
441
21,8831,385
185
23,453
7 21,9094 1,4481 549
------12 23,906
Source: William ~Iackenzie, op cit., p. 36
termination the report suggests that the Commission use its power to
discourage small producers by refusing them subsidy payments and by
closing small processing plants, thereby making it difficult to ship
small amounts of cream.47 With this object of eliminating small cream
producers in mind, the Dairy Commission in 1968, refused to issue a
quota for subsidy payment to any fanner who shipped less than 350
pounds of cream in the previous year. Those who shipped over 350
pounds but under 1750 pounds were each considered individually and were
granted or refused a quota on the merits of the individual case. Only
47William Mackenzie, op cit., p. 20
-121-
far.mers who produced 1750 pounds of cream were guaranteed a quota with-
out qualifications. Assuming that a minimum of eight cows are needed
to produce 1750 pounds of cream annually, only 5,476 or 17 per cent of
all farms with cows are absolutely guaranteed of a continu.ing quota
(see Table 45). These latter producers are mainly located in census
divisions 5, 9, 10, 14, 15, and 16 in the Park Belt where small
seasonal cream production has been traditionally associated with mixed
fanning (see };1ap 33, _page 122).
TABLE 45
NUMBER OF l"ITLK CO~~'S ON SASKATCm1vAN FARMS 1966
No. of Cows on Farm
1 or 23 to 7B and over
No. of Farms
13,53113,137
5,476a
32,144
%of all Fanns with Cows
4.24117
100
Note: ~here were 536 shippers of fluid milk in 1966. Assuming theyeach had 8 cows or more, then the maximum number of farms fromwhich 1750 pounds of cream was shipped would be 4,940 or 15 percent of all fa.rms with cows.
Source: D.B.S. 1966
Another aspect of efficient production which the Ca.nadian Dairy
Commission is demanding from cream shippers is regula.r sales, spaced
evenly over the whole year. This is enforced by establishing the total
quota on a monthly basis and if a shipper exceeds his quota for one
month he receives no subsidy on the extra amount in that monthly
settlement. While as yet, monthly subsidies held back in this way are
-122-
NUMBER OF MILK COWS PER FARM
1966
Circles are proportional to number of farms.Number of Cows Per Farm
•R
over 13 t.=:t 2
08-12 []]l§j33- 7 Do1
4
Scale in Miles25 0 25 50_-E::::.-:=-t::====,=,=:::::::jl
Map 33Source: D.B.S. 1966 Datafor Census Divisions
-123-
paid later to the shipper if his production falls below quota, the
implication of the system is, however, clearly to discourage seasonal
production.
The impact of these policies on cream production in :3askatchewan
is revealed by recent sharp aID1ual decreases in butter pr~iuction of
14 per cent for 1965, 1966 and 1967 (see Appendix H). It c~ppears this
decline may continue as small cream producers fail to meet quotas and
turn to calf or other enterprises.
In Saskatchewan, butter has been traditionally manufactured from
small collections of cream produced by a great number of farmers with
small dairy herds. Collectively, however, these farmers produce
sufficient cream to make butter manufacturing a significant part of the
Saskatchewan dairy industry. A sufficient quantity of butter has been
produced to supply the provincial market and at times, other markets as
well. As a result of the importance of butter manufacturing in
Saskatchewan, provincial dairy officials, cream producers and butter
manufacturers are unlikely to accede to federal policies which may
jeopardize the present tenuous position of the small cream. producer. A
growing displeasure of Canadian Dairy Commission's policies has already
been expressed by Prairie delegates attending the 1970 ann.ual meeting
of the Dairy Farmers of Canada in Vanc ouver.48
As the effects of these policies on the Dairy Industry in
Saskatchewan accumulate, it is evident that concern about the policies
and techniques used in "squeezing out tt the small producer will be
48peter Lewington, UDairy Meeting in Confusion tJ , Country Guide,(March, 1970), p. 16
-124-
demonstrated by dairy officials and others; whether this will result in
a reshaping of policy with respect to small cream producers may depend
largely on the nature of the case presented in their favour.
Conclusion: Presently, the decline of grain sales and the spiralling
of farm operating costs are causing economic pressures for
Saskatchewan farmers in general and for small mixed farmers in particular.
In this instance, the traditional place and special importance of small
dairying on mixed farms in Saskatchewan is worth noting.
Throughout the history of farming inSaskatchewan, da:lrying has
assisted some farmers in providing a little ready-cash, particularly in
the hard times of pioneering, during the depression of the 30 l s and on
many small farms in the Park Belt and Pioneer Fringe. During'World
War II, farm income from the sale of cream significantly increased as
creamery butter production in Saskatchewan expanded from 28,306,811
pounds in 1941 to 48,230,903 pounds in 1944 in response to the wartime
needs of Canada. In the post war period, small dairying continued on
:many mixed farms, on which a few milk cows have traditionally grazed
the rougher land. Although small dairying has declined in recent
years, a cow or two on many Saskatchewan farms has remained customry
to ensure a daily fresh milk supply for the scattered rural population.
By inclUding a few more cows, and with a small extra amount of effort,
some farmers have obtained the additional benefits of a weekly cash
income from cream.
Gradually, farmers have acquired knowledge of the environment and
worked out compromises with it. Cows have been seasonally milked in
-125-
the summer and dried 'off in winter, thereby avoiding the inconvenience
and difficulty of maintaining production during the severe winters.
Some farmers have concluded that an area with mixed risks and problems,
such as drought, temperature extremes and distance from and dependence
on foreign markets, needs mixed securities - one being dairying - which
is in agreement with the advocates of diversification of the farm unit;
such proponents have periodically risen and fallen in the esteem of
Prairie farmers in general, the esteem changing with the wlgpries of,
especially, wheat production and the wheat market.
Finally, it is suggested, that a rational dairy policy for
Saskatchewan should be based upon an understanding of historical
development of the industry, traditions of farming and knowledge of the
environment in addition to economic factors. A policy based only on
the obvious aspects of the latter, may be simplistic in ignoring the
special role of the milk cow on many Saskatchewan farms and the special
place of dairying within the total farm operations of those farmers
whose skills, preferences and resources have made it feasible.
Small milk production and mixed farming are in many instances inseparable
in Saskatchewan. In light of the factors which originally fostered
dairying as a p:lrt of mixed farming in the province and have sustained
it up till the present, there appears to be a place for the small milk
producer at least temporarily until the whole concept and practise of
mixed farming in saskatchewan is thoroughly assessed.
-126-
APPENDIX A
DAIRY SURVEY OF 31 SCHOOL DISTRICTS - 1922-23
Race - Percentage
1 17 1272 14 1403 28 1684 20 2925 14 10.36 22 1.357 23 1758 18 1129 15 200
10 20 32711 25 15112 18 20413 30 19814 16 15015 23 38516 16 18217 30 16618 25 17519 15 22520 15 13521 30 23522 10 3602.3 .35 17024 26 30025 14 32026 15 14227 20 11028 25 13329 20 242.30 25 .31231 .30 202
721591805
3.380
9090 .3
10065
1007075
1009055
10092
10042
100666518607555 35
100
1
100
10 12 65 15
912
36 37 1955 12
20
.3 .37
5 30
1825
2 845
4 4
5 41
3 312 21
60 2 2010 10
20
95
160 5065 160 80
160 808 160 603 320 250
400 320300 90
5 400 200.3 .320 200
160 60160 60320 .33160 25
12 .320 100160 40.320 250320 60.320 90260 75.320 80290 90160 80
12 250 100160 140160 75
12 160 75320 250
20 .300 2005 240 190
10 .320 150160 100
4 s 506 s 505 s 504 s 505 G 60
11 S 904 s 905 G 1006 s 603 s 752 s 505 S 603 s 406 S 502 S 504 G 95.3 s 755 G 75.3 s 905 s 503 s 656 s 754 S 506 s 75.3 S 804 s 504 S 503 G 854 S 904 G 75.3 s 60
Source: Robert England, The Central European Immigrant in Canada,(Toronto: MacMillans Co., 1929), p.230
-127-
APPENDIX B
From the by-laws governing patrons of the Moose Mountain Cheese
Manufacturing Association:
The regulations provide:
"••• that milk be delivered to stand at a time to suitconvenience of milk drawer who shall not leave any milk standbefore 5:30 A.M. and who shall reach the factory not later than8:30 A.H."
fl ••• that milk stands be provided at roadside at a convenientheight; surroundings of milk stand be clean and free from badsmells; no swine may feed within 100 feet of the stand. 1I
"••• that pastures, yards and lanes be kept free from alldecaying matter which may cause noxious smells."
"••• that milk cans shall be kept sweet and clean; if unfitcans are used a fine of 50 cents will be levied for ~~ach time;cans must be scalded with boiling water once a day.n
u••• that milk must be drawn from the cow in a cleanly manner;the udder should be brushed or washed and milking with dry handsis preferable to the practice of dipping the fingers in the pailin order to moisten them. It
"••• that all other pails and utensils with which milk isbrought in contact shall not be of wood. The use of wooden pailsfor milking or holding milk is strictly forbidden, and anycontravention of this rule will subject the patron to theliability of being deprived of the privileges of the factory.u
Source: Archives, Saskatoon. From a file entitled ''Moose MountainCheese Manufacturing Association", (1895-1898).
-12$-
APPENDIX a
FEDERAL OOVER.NMENT CREAMERIES IN SASKATCHE'W'AN
1897 - 1905
A: Creameries Taken Over in 1897:
Creamery
GrenfellMaple CreekMoose JawMoosominPrince AlbertQu'Appe11eReginaWhitewoodYorktonWo1seley
No. of Patronsin First Year
802157
11343977t..
131109
47
Last Yearof Business
1903190119031905*19031905*1903190319021899
No. of Patronsin Last Year
5210114828491550II11
B: Creameries Opened 1898:
ChurchbridgeSaltcoatsSaskatoon
c: Creameries Opened 1904:
Tantallon
707618
16
1905*19041901
1905*
202278
16
* These Creameries were taken over by the New Province of Saskatchewanin 1906.
Source: Annual Reports, Department of Agricu1ture of the North-WestTerritories, (1898 ), and (1904), pp. 42-44
.Annual Report, Department of Agriculture of Saska.tchewan,(1905), p. 40
-129-
APPENDIX D
AREAL m'ENT OF A CONTROLIED AREA
PROVINCE OF SASKATCHDlAN
:MILK CONTROL BOARD
Order No. 390 May 1, 1968 Area V.
The prescribed area of Saskatoon, in addition to the City ofSaskatoon, shall include the following described lands situated withinthe Rural Hunicipality ..'of Cory, No. 344, and lying west of the 3rdmeridian in the Province of Saskatchewan: Section 31, Township 36,Range 4; Section 8, that portion of Section 9 lying north of thesoutherly boundary of a surveyed road shown on Registered Plan #DN 5659and south of the north-east boundary of Parcel Fas shown on Registered.Plan HeR 3926, the south half of Section 17, that portion of the southhalf of Section 18 lying south of the left bank of the SouthSaskatchewan River, the north half of Section 24 EXCEPTING THEREOUTAND THEREFROM the mOB t westerly 417.4 feet of Parcel F. as shown on.'Registered Plan #628 17923, Township 36, Range 5; the west half ofSection 36, Township 36, Range 6; the north half of Section 6, Section7, that portion of Section 8 lying north and west of a line describedas follows: "Commencing at a point on the south boundary of said.section distant westerly 1066.15 feet from the south-west corner of thesouth-east quarter, thence northerly parallel to the east boundary ofsaid. section a distance of 1494.6feet to a point, said east boundaryhaving an assumed bearing of N Q 03' 30n W, thence nGrth-westerly in astraight line on a bearing of IV 19
001 tWa distance of 1730° feet to a
point, thence northerly on a straight liBe on a bearing N 0 03 t 30" Wa distance of 380.5 feet to a point, thence easterly in a straight lineon a bearing of S 890 55' E a distance of 873.35 feet to l'1 point,thence northerly in a straight line on a bearing of N 0
003' 30lt W a
distance of 1041.9 fset to a point, thence easterly in a straight lineon a bearing of S 89 55' E to the east boundary of the said sectieD. t1
The north-west quarter of Section 9, that portion of the north half ofSection 10 lying east of the west boundary of the right-of-way ef theCanadian National Railways as shown on Registered Plan #Os 2640, thatportion of Section 11 lying nerth and west of the right bank of theSouth Saskatchewan :River, the west half of Section 16, Sections 17 andIS, the east half of Section 20, the west half of Section 21, Township37, Range 5; ALL PLANS OF RECORD IN iHE LAND TITLES OFFICE FOR. THESASKATOON LAND REGISTRATION DISTRICT.
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APPENDIX E
PRODUCERS WITH MENNONTI'E SURNAlviES IN SASKATOON SHED
Note: Number in bracket indicates the number of different producerswith same surname.
GROUP 1: Classed according to C. Henry Smith, The Coming of theRussian Mennonites, lylennonite Book Concern, Berne, Indiana,1927.
Baerg(en); Buhler (4); Dyck (4); Erms (7); Epp (4);Friesen (15); Froese; Funk; Goertzen; Harms; Hei.n (2);Hiebert (3); Janzen (6); Klaassen (7); Klein (2); Krause;Lehman; Lepp; Loewen (4); Martens (2); Nickel; Penner (3);Peter; Quiring; Reimer (4); Rempel (2); Sawatskjr (5);Schellenberg (2); Schierling; Schultz (2); Siemens;Thiessen (2); Unger; Unruh; Voth; Wiebe (7); ~iillems (3).
GROUP 2: Names in addition to those listed by Smith. Classedaccording to Mr. P • Wiens , former resident of Saskatchewanand Assistant to the Librari.an, University of Waterloo.
Boldt (2); Derksen; Dueck; Driedger (2); Fehr (4);Guenther (2); Hamill; Heppner; Kruger; Peters (6);Reddekopp (4); Sommerfeld; Wall; Wiens (2).
GROUP 3: Mennonite Farms.
Youth Farm; Riverview Colony.
Total Producersin Shed in 1968
Producers with Mennonite SurnamesAccording to Above Classification
Total of 3 Groups - 138
%of All
56.5%
Year Production
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SKD1 MILK rovDER IN CANADA
1958 - 1967
DomesticDisappearance
Exports StocksJan. 1
- - - - - - - - - - - thousand pounds - - - - _. - - - - - -
1958 185,625 109,673 46,488 47,8381959 176,437 121.302 110,543 77,3131960 171,969 122't749 47,992 21,9421961 213,029 153,277 53,090 23,2041962 192,292 132,977 35,689 29,8751963 176,086 153,049 55,556 53,5131964 203,047 153,406- 42,139 20,9941965 222,155 138,892 86,258 28,4961966 263,508 163,640 69,447 25,5011967 316,378 139.899 94,973 55,9221968 137,428
Source: Dairy Facts and Figur~s, (Sparks St., Ottawa, 1968), p. 15
Year Production
-1.32-
APPENDIX G
WHOLE MILK PO~YDER IN CANADA
1958 - 1967
DomesticDisappearance
Exports StocksJan. 1
- - - - - - - - - - - thousand pounds - - - - _. - - - - - -
1958 19,713 3,320 17,530 3,7121959 20,872 3,879 18,401 2,6841960 45,829 4,899 36:1729 1,4181961 25,622 3,278 25,790 5,8221962 23,310 2,820 20,203 2,5651963 21,907 5,167 17,III 3,1091964 22,.330 2,976 18 ..449 2,7381965 21,947 3,840 19,653 .3 .. 6431966 7,732 1,298 6,710 2,0971967 8,352 4,684 4 .. 872 1,8211968 617
Source: D~.iry Facts and Figures, (Sparks St., Ottawa, 1968), p. 14
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APPENDIX H
CRE~D8RY BUTTER PRODUCTION 1906-1967
Year Total ButterMade
(pounds)
Per CentIncrease
orDecrease
Number ofCreameriesOperating
Butter MadePer Creamery
(pounds)
190619101915192019251930193519401944194519501955196019631964196519661967
132,446 5 26,489596 .. 228 + 350.1 9 66,246
3,857,,862 + 547.0 24- 160,7446,638,895 + 72.0 48 138,310
15,946,233 + lAO.1 70 227,80313,920,561 - 12.8 69 201,74722,853,859 + 64.1 60 380,89828,306,811 + 23.8 60 471,78048,230,903 + 70.3 62 777,91841 .. 039,582 - 14.9 63 651,42228,971,772 - 29.4 62 467,28626,836,165 7.3 55 487,93028,011,631 + 4.3 53 528,52126,920,520 3.9 53 507,93425,223,566 6~3 52 485,06921,699,863 - l).4';O 49 442,85419,030,568 - 12~3 46 413,70816,255,592 - 14.6 40 406,390
Source: Sixty-third Annual Report, Department of Agriculture,\Saskatchewan, 1968).
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