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Dairy Sector Report
Published: November 27, 2024

Dairy Sector Report

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EXECUTIVE SUMMARY

of dairy manufacturers thought productionrelated positions are the 66% most difficult to recruit for, especially skilled/semiskilled process control & machine operators (26%)

70%

$25,538

On average, dairy processors spend $25,538 on training annually

The most prominent HR challenge identified in the sector is applicants with too high compensation expectations, viewed as at least somewhat of a challenge by 53% of respondents.

35%

Processors reported recruitment challenges have increased over the past year, while the majority (58%) reported these challenges have remained unchanged

26%

More than a quarter (26%) of dairy processors reported experiencing immediate or persistent challenges recruiting and retaining workers, while an additional 53% of processors reported occasional/ seasonal or ongoing challenges.

youth under 30 and women

Most processors reported making concerted efforts to recruit youth under 30 and women, while fewer processors reported making similar efforts for indigenous, new Canadians, people with disabilities and workers over 50.

16% of processors reported utilizing the Temporary Foreign Worker Program and 11% reported using the Provincial Nominee Programs

The average starting hourly wage for entry-level frontline workers in the dairy sector is $16.10

The majority of processors have reported a decline in customer orders and cash flow and have responded by laying off employees and issuing work from home policies

The majority of sector believe COVID-19 to be a high threat to their business, with 59% reporting a reduction in production volume due to COVID-19.

METHODOLOGY AND RESPONSES

89 Dairy processors responded to this survey and participated either online or by telephone between February and May 2020. The extended time in field was due to COVID – 19 pandemic. It wasn’t possible to ask as many questions in the phone version of the survey as opposed to the online version. As such the number of respondents is indicated by N for every chart and ranges from 29 to 89 depending on the question. 

Who we surveyed:

N= 89 Dairy processing employers surveyed

RegionSurvey Responses
BC16
AB6
SK/MB4
ON34
QC26
Atlantic Canada3
Not Specified1
TOTAL89

The majority of the questions in this report were asked to food and beverage processors across the country, there were 740 responses in total to the survey. The findings of the overall survey are available on the fpsc website (https://fpsc-ctac.com/reports/)in the report titled: 2020 Labour Market Information Survey Report – Canadian Food & Beverage Manufacturing Industry Report.

DAIRY PROCESSORS SURVEY

Overview

  • Layer 1 Industry Profile
  • Layer 1 Workforce Profile
  • Layer 1 Workforce Availability and Recruitment
  • Layer 1 Wages and Benefits
  • Layer 1 Training and Skills Development
  • Layer 1 Impact of Covid-19
Total Dairy Establishments by Province: Total Dairy Employment 24,668; Number of Dairy Employees covered by our survey 6803; Percentage of Employees covered by our survey 28%; Total Dairy Establishments 376; Number of Establishments covered by our survey 89; Percentage of Establishments covered by our survey 24%

OTHER FOOD PROCESSING INDUSTRY PROFILE

In a Snapshot

  • Layer 1 66% of facilities process cheese, 25% process fluid milk products and yogurt and 24% process butter
  • Layer 1 The vast majority of facilities (85%) produce products internally, 12% of facilities produce products both internally and externally

DAIRY PROCESSING INDUSTRY PROFILE

Employment Size

Dairy processors mainly operate small to medium size facilities:
  • Layer 1 The “average” processor in Canada has 76 paid positions, including both filled and vacant positions
  • Layer 1 72% of processors reported fewer than 50 paid positions at their facility
  • Layer 1 9% of processors reported 200 or more paid positions are their facility

* Includes both filled and vacant positions

Size of Processing Facilities, Paid Positions*

0 to 9: 39%; 10 to 49: 37%; 50 to 99: 11% ; 100 to 199: 5%; 200 or more: 6%; Don't know: 2%
  • Layer 1 The “average” dairy processor has 76 paid positions at their facility
  • Layer 1 On average, nearly half (45%) of these paid positions are filled by women
  • Layer 1 A significantly lower portion are filled by workers with disabilities (2%) or Indigenous Peoples (1%)
Question: On average, in 2019 how many paid positions were…?
Average Paid Positions, Share (%) of Total
Average Paid Positions, Share (%) of Total: Unionized: 10%; Filled by women: 45%; Filled by workers under the age of 30: 34%; Filled by workers over the age of 55: 18%; Filled by recent permanent immigrants (arrived within last 5 years): 7%; Filled by workers with physical or mental disabilities: 2%; Filled by First Nations, Inuit, or Metis individuals: 1%

Employment by Occupation

Average number of people employed

Entry Level Labourers: 40; Skilled/Semi-Skilled Process Control + Machine Operators: 7; Management, Finance, Sales + Administration: 18; Quality Control + Assurance: 3; Any Other Occupations: 4
  • Layer 1 On average, entry level labourers account for the highest number of positions, vacancies and new hires
  • Layer 1 Most processors employ fewer than 10 workers across occupation groups
Any Other Occupations: 0.25; Quality Control + Assurance: 0.4; Management, Finance, Sales + Administration: 0.5; Skilled/Semi-Skilled Process Control + Machine Operators: 0.7; Entry Level Labourers: 2.1

Highest level of Education Required

  • Layer 1 46% of Skilled/semiskilled process control & machine operators (46%) are only required to hold a high school diploma
  • Layer 1 Four-in-ten (41%) say at least a university degree is required for management, finance, sales & administration positions

Only a high school diploma is required for most entry level dairy positions

High School Diploma College Diploma / Trade School University Undergraduate Degree University Postgraduate Degree Certificate of Qualification – Skilled Trades / HACCP None Not Applicable Don’t Know
Entry level labourers (n=80) 69% 4% – 1% 1% 18% 6% 1%
Skilled/semi-skilled Process Control & Machine Operators (n=76) 46% 37% 5% 1% – 5% 4% 1%
Management, Finance, Sales & Administration 8% 28% 41% 13% – 3% 5% 3%
Quality Control & Assurance (n=75) 19% 40% 20% 13% – 3% 5% 3%
Any Other Occupation (n=38) 39% 16% 11% – – 13% 11% 11%

Business Outlook

  • Layer 1 Dairy processors are optimistic about the outlook of their business, as most (68%) anticipate an increase in revenue over the next year
  • Layer 1 Only 5% anticipate revenue will decrease, while nearly a fifth (19%) anticipate revenue will remain unchanged
Anticipated Revenue: Question: Thinking about your business outlook for the next year, do you expect revenue to….? Increase significantly 14%; Increase somewhat: 54%; Decrease modestly: 5%; Decrease significantly: 0%; Stay the same: 19%; Don't know: 8%

Business Challenges

  • Layer 1 The availability of labour is the most significant challenge within the industry, as approximately two-thirds of dairy processors identified this as at least somewhat of a challenge
  • Layer 1 Consumer trends (39%) and implementing new technologies (38%) were also viewed as challenges by a large share of processors
Question: How would you rate the following in terms of their impact on your business…..?. The following percentage for each category will follow this pattern: Extreme challenge | Somewhat of a challenge | A little bit of a challenge | Not a challenge | Don't know. Availability of labour: 36%|25%|27%|12%|0%; Regulatory requirements (labelling, certification, quality assurance): 11%|25%|38%|25%|1%; Consumer trends: 4%|35%|34%|26%|1%; Waste reduction and other environmental requirements: 9%|26%|42%|22%|1%; Implementing new technologies: 7%|31%|34%|27%|1%

WORKFORCE AVAILABILITY AND RECRUITMENT

Recruitment Challenges

  • Layer 1 A further 25% reported experiencing occasional or seasonal challenges
  • Layer 1 All together, 88% report some form of challenges recruiting or retaining qualified workers.

The majority (63%) of Canada’s dairy processors reported not being able to fill positions or chronic recruitment challenges.

Workforce Availability

36%

Experiencing immediate and persistent challenges throughout the year recruiting and retaining qualified workers and cannot fill vacant positions

27%

Experiencing ongoing challenges recruiting or retaining qualified workers to successfully fill positions

25%

Experiencing occasional or seasonal challenges recruiting orretaining qualified workers. Cannot fill vacancies during peak periods

12%

Experiencing no significant challenges in recruiting or retaining qualified workers

Question: How would you describe the general availability of workers you need?

Recruitment Challenges

  • Layer 1 58% reported these challenges have remained constant
  • Layer 1 Only 5% reported recruitment challenges decreased over the past year

35% of Dairy processors reported an increase in recruitment challenges over the past year, with 18% indicating a significant increase.

Increased Significantly: 18%; Increased Moderately: 17%; Stayed the Same: 58%; Decreased Moderately: 3%; Decreased Significantly: 2%

Dairy Roles Most Difficult To Recruit For

  • Layer 1 A clear majority (66%) of dairy manufacturers think production-related positions are the most difficult to recruit for
  • Layer 1 One-third (33%) find kitchen positions to be the most difficult to recruit for, while slightly fewer (22%) claim that administrative positions are most difficult
  • Layer 1 The most difficult roles to recruit for include cheese makers (25%) and skilled process control & machine operators (26%)
Production Department (Net): 66%; Kitchen Department (Net): 33%; Skilled/Semi-skilled Process control and machine operators: 26%; Cheesemaker: 25%; Administrative Department (Net): 22%; Production: 17%; Entry Level General laborers: 17%; Management, Finance and Administration: 17%; Quality Control and Assurance: 13%; Customer Service Department (Net): 12%; Other: 12%; Retail Salespersons: 11%; Packing clerk: 8%; Don't know: 8%; Supervisor/team leader: 7%; Maintenance worker: 6%; Delivery drivers: 6%; Production/operations manager: 6%; Kitchen helper: 4%; Shipping/receiving clerk: 3%; Warehouse worker: 3%; Nothing: 2%; Refusal: 1%

Human Resource

  • Layer 1 A lack of qualified applicants was viewed as somewhat of a challenge by 71% of dairy processors, the highest proportion across food & beverage sub-sectors
  • Layer 1 Applicants with compensation expectations too high (57%) and lack of applicants with proper training (56%) were also viewed as pressing issues
The majority of dairy processors (62%) report having a dedicated human resources staff or department.
These applies for the future categories: Extreme Challenge | Somewhat of a Challenge | A Little Bit of a Challenge | Not a Challenge at All | Don’t Know: Lack of Qualified applicants: 22%|49%|22%|5%|3%; Lack of applicants with proper training/certification: 24%|32%|35%|11%|5%; Turnover/Retention: 11%|38%|35%|11%|5%; Absenteeism: 11%|35%|24%|27%|3%; Applicants with Wage/Compensation expecta ons that are too high: 22%|35%|32%|8%|3%; Competition from other employers: 8%|41%|32%|11%|8%; Lack of Applicants with adequate language or communication skills: 5%|32%|46%|14%|3%; Abuse of Sick leave: 8%|16%|30%|38%|8%; Adapta on to new technologies: 0%|19%|49%|30%|3%

Immigration Programs

16% of Dairy processors reported utilizing the TFWP, while 11% reported utilizing the PNP program.

Underrepresented Groups

  • Layer 1 The majority of dairy processors reported making concerted efforts to recruit Youth under 30 Women 58% 53% youth under 30 (58%) and women (53%)
  • Layer 1 Recruitment efforts lagged behind for Indigenous Peoples (24%) and people with disabilities (22%)
Youth under 30: 58%; Women: 53%; New Canadians or immigrants (that have arrived within the past 5 years): 36%; Women over 50: 40%; First Nations, Inuit, Metis or other Indigenous persons: 24%; People with physical or mental disabilities: 22%

WORKFORCE WAGES AND BENEFITS

In a Snapshot

  • Layer 1 Average hourly starting wages for frontline workers ranged from a low of $13/ hr to a high of $28/hr across processors
  • Layer 1 Only 6% of processors pay front line workers $20/hr or more
  • Layer 1 The majority (55%) of processors reported average hourly starting wages to be between $15-$17 per hour
$16.10

The majority (62%) of dairy processors reported offering benefits at their plant or organization

  • Layer 1 Nearly all processors (97%) provide employees with extended health or drug plans, paid days and sick leave were also frequently reported by 76% of processors
  • Layer 1 Nearly half of processors reported offering RRSP matching (45%) and pension plan (45%), while about one-third (34%) reported offering tuition reimbursement
  • Layer 1 Less traditional incentives such as workplace perks, free products and allowances for safety shoes/boots were less frequently offered

Benefits Offered

97%

Extended health or drug plan

76%

Paid days or sick / family leave

45%

RRSP matching

45%

Pension plan

34%

Tuition reimbursement

7%

Bonus

3%

Other

3%

Workplace parks

3%

Free products / discounts

3%

Safety shoes / boot allowance

TRAINING AND SKILLS DEVELOPMENT

In a Snapshot

$25,538 Annual Training Budget
  • Layer 1 On average, dairy processors allocate $25,538 in training per annum.
  • Layer 1 On average, this works out to approximately $334 for each paid position
  • Layer 1 On-the-job training and in-house training are the most common training tools used in the sector
On-the-job training: 92%;

Automation in the Dairy Sector

  • Layer 1 38% of dairy processors reported moderate integration of automated production processes
  • Layer 1 8% of processors reported no integration, significantly lower than the total sample
The majority (72%) of Dairy processors reported adopting some level of automation in the production processes.

Perceived Threat

  • Layer 1 The majority of dairy processors surveyed (92%) think COVID-19 poses at least some threat to their business, the majority which (50%) feel highly threatened by it
  • Layer 1 Dairy processors reported feeling higher threat levels than most other food and beverage processing subsectors

IMPACT OF COVID-19

Threat Level: Very high: 25%; High: 25%; Somewhat High: 27%; A little: 15%; None: 8%

Production Volumes

  • Layer 1 The majority of dairy processors surveyed (59%) reported reduction in production due to COVID-19
  • Layer 1 A fifth (21%) reported an increase in production volume due to COVID-19
Increase, 21%; No Change, 21%; Reduction, 59%
  • Dairy processors have been impacted in many ways by COVID-19
    • Decline in customer orders has been the most notable impact, as reported by 66% of processors
    • Decline in cash flow was also reported by the majority of processors (52%)
  • Dairy processors also took different approaches to dealing with COVID’s impact
    • Approximately half of processors reported reducing workers hours (52%), allowing employees to work from home (48%) and conducting layoffs (45%)
    • Just 7% of processors reported and increase in outsourcing

Impact of COVID-19

Action Taken

Increased outsourcing: 7%; Allowed employees to work from home: 48%; Reduced workers' hours: 52%; Laid-o workers: 45%
SECURING CANADA'S DAIRY WORKFORCE. fpsc-ctac.com Food Processing Skills Canada (FPSC) 3030 Conroy Road, Suite 201 Ottawa, Ontario K1G 6C2 Phone: 613.237.7988 Toll Free: 1.877.963.7472

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