The dairy products that we consume are made from milk and other ingredients. Dairy processing is the processes through which milk is processed into cheese, yogurt, butter, ice cream, and other dairy products.

The dairy processing sector is a key contributor to the Canadian economy. Approximately 27,000 Canadians work in this sector, and ranks second (based on farm cash receipts) in the Canadian agriculture sector, just behind red meats.

In Canada, the estimated cost to a processor of converting one hectolitre of raw milk into butter and skim milk powder is approximately $11.82.