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

-1-

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• • •• •••• ••• • ••· :.. :• •••••••••• • ••••••••••••••• • • • ••••••• • • • ••• • •• • • •••••• •• •• • •• • ••• • •••••••• ••• ••••

• • •••••• ••••••

• ••• ••••• ••• ••• •

••• •••• ••••• ••• ••• •

•• • •••••••

••• •• •

• •• •• •

•••• • •

•

• •• •• • • ••• • •• •• •• • •• • •• • •• • •

• •• • ••• • •

••

•

• • •• • •

•• •• •

• • • • •• • • •• • •• •

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.

-130-

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

~131-

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

-133-

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).

-134-

BIBLIOGRAPHY

Arth\lr, H. , "New Rail Rulings Hit Farm. Products, It Family Herald,(July, 1968).1 p. 9.

Barber, s. H., Dairying Costs and Returns ,Regina, 1967.

JBarfoot, L.W., MacDonald, A. D., and Redelmeier, W.R., 'l~he Impact of»lib1e Oil Prod\lctson the Dairy Industry, Ontario Departmentof Agriculture, (1968).

Church, G. C., 'tDominion Government Aid to the Dairy Industry ofWestern Canada," Saskatchewan History, XVI (1963).

Cooke, B. A., "The Development and Operation of Milk Control Boards, 11

Reprint of a.ddress given at Vancouver 1939, Milk: Control Board,Regina.

Currie, A.W., Economic Geography of Canada, Toronto, (1945).

Drummond, W. M., Anderson, W. J.,and Kerr, T. e., A Review ofJgricultural Policy in Canada, McGill University, (f96bJ.

Durand, Loyal Jr., ''Major Milksheds of the Northeastern Quarter of theUnited States, It Economic Geography, XL (1964) pp. 9-33.

England, Robert, Colonization of Western Canada, London, (1936).

Higbee, Edward, American Agriculture, Toronto, (1958).

Huntington, Ellsworth, Principles of Econanic Geography, New York,(1940).

Innis, H. A., The Dairy Industry in Canada, Toronto, (1937).

I.ew:i.ngton, Peter, "Dairy Meeting in Confusion, "Country Guide,Winnipeg, (March, 1970) pp. 16, 54.

Mackenzie, William, The Canadian Dairy Industry, ARDA ProjectNo. 15033, Ottawa, (1967).

Richards, J. H., and Fung, K. I., "Five Selected Maps, If At,las ofSaskatchewan.

Snith, C. Henry, The Caning of the Russian Mennonites, Mennonite BookConcern, Berne, Indiana, (1927).

Ta.y1or, R., "Prairie Dairying Declining Industry, fJ Western Producer,(April, 1966) pp. 4, 5.

-135-

Thant, G. I., ttRecent Canadian Dairy Price Policies, n The CanadianJournal of .Agricultural Economics, XI (1963), pp. 22...39.

References Without Authors Indicated

A Brief Look at the Dairy and Poultry Pool, Saskatoon, 1961.

Annual Report, Department of Agriculture, Regina, 1907, 1909, 1917,1919, 1921, 1927, 1932, 1966, 1967.

Annual Report, Department of Agriculture of Iforth-¥est Territories,1898.

Annual Report, Milk Control Board of Saskatchewan, Regina, 1967, 1968.

Dairy Facts and Figures, Dairy Farmers of Canada, ottawa, 1968.

"Federal Dairy Policy Changed, It Country Guide, Winnipeg, (April, 1969),p. 52.

Fluid Milk Study, 1966, Regina and Saskatoon Area, Department ofAgriculture, Economic and Statistic Branch, Regina., 1967.

Inquiry into Farming Conditions in the South West, Report of RoyalCommission, Regina, (1921), pp. 36=59.

Saskatcbewan Dairy Herd Improvement Services, Department of Agriculture,The Livestock and Dairy Branch, Regina, 1967.

The Agricultural Climate·· of Saskatchewan, Climatological Study II 10,Department of Transport, Toronto, 1967.

Statistical Atlas, Dominion Bureau of Statistics, Ottawa, 1931.

other References

Ballabon, Maurice, "Putting the Economic into Economc Geography, ft

Economic Geography, XXXIII, (1957), pp. 217-223.

Birch, J. W., ''Rural Land Use and Location Theory,1I Economic Geography,XXXIX, (1963), pp. 273-275.

Chapman, L. J. and Brown, D. M., The Climate of Canada for Agriculture,Ottawa, (1966). .

Chisholm, Michael, Geography and Economics, London, (1962).

-136-

Church, G. e., "Origins, Nature and,Deve1opment of the SaskatchewanCO-Operative Creamery Association Limited," Unpublished Thesis,Department of Economic and Political Science, University ofSaskatchewan, (1960).

Curry, Leslie, "Climate and Economic Life - ANew Approach, It

Geographical Review, XLII (1952), pp. 367-383.

Grotewo1d, Andreas, ttVon Thunen in Retrospect," Economic Geography,XXXV (1959), pp. 346-355.

Hurd, W. Burton and Grindley, T.W.,Agriculture, Climate andPopulation of the Prairie Provinces of Canada, Ottawa, (1931).

McCarty, H. H., "An Approach to a Theory of Economic Geography,"Economic Geography, XIX (1954), pp. 95-101.

McCarty, H. H. and. Lindberg, J. B., A Preface to Economic Geography,New Jersey, (1966).

McNee, Robert, ''The Changing Relationships of Economics and EconomicGeography," Economic Geography, XJ.XV (1959), pp. 189-198.

Richards, J. Howard., Saskatchewan Geography, University of Saskatchewan.

Siddall, YIn., "Two Kinds of Geography, If Economic Geography, x:xxvnGuest Editorial, (1961).

Whitaker, J. R., Introductory Economic Geography, New York, (1956) •

White, James, Atlas of Canada, Ottawa, (1906).

"Corn for Dairy Areas," Country Guide, Winnipeg, (Aug. 1968), p. 39.

"F.A.O. COJmnooity Review," F.A.O. Organization of U.N., Rom.e, (1967),pp. 53-58.

ltIntroduction of Irrigation System will Boost Dairy Indlistry, tt StarPhoenix, Saskatoon, (Aug. 26, 1965), p. 9.

Outlook for Saskatchewan Agriculture, Department of Agriculture,Regina, (1969).

"Problems in Dairy Policy, If Organization for European EconomicCo-Qperation, Paris, (1964).