Parliamentary Research Branch

PRB 98-5E

OVERVIEW OF BUTTEROIL/SUGAR BLEND IMPORTS

Prepared by:
Jean-Denis Fréchette
Economics Division
October 1998

Statistical Data

Butteroil/sugar blend imports:

1994 = 1.735 million kg
1997 = 8.752 million kg

 

Apparent use of blends:

1994 = 1.735 million kg
1997 = 6.343 million kg

Apparent use of milkfat equivalent:

1994 = 0.844 million kg
1997 = 3.086 million kg

National market sharing quota for milkfat:

1997 = 157.9 million kg

 

MSQ displacement by imported
blends as a milkfat equivalent:

1997 = 2%

• Domestic milkfat price: 1997 = $6.25/kg

• Weighted milkfat price in butteroil blends: 1997= $5.20/kg

• Savings realized by ice cream and processed cheese producers: 1997 = $3.2 million

Estimated revenues forgone by dairy farmers
because of butteroil/sugar blend imports:

1997 = between $12.8 million and $30.9 million,
according to the various scenarios examined by the CITT

Definitions

Tariff Item 2106.90.95:

Other preparations that contain in the dry state over 10% by weight of milk solids but less than 50% by weight of dairy content.

Tariff Item 2106.90.34:

Preparations, other than tariff item No. 2106.90.31 or 2106.90.32, containing greater than 15% by weight of milk fat, suitable for use as butter substitutes, over access commitment.

Tariff Item 0404:

Whey, whether or not concentrated or containing added sugar or other sweetening matter; products consisting of natural milk constituents, whether or not containing added sugar or other sweetening matter, not elsewhere specified or included.

Tariff Item 0404.90:

Other products consisting of natural milk constituents, whether or not containing added sugar or other sweetening matter, not elsewhere specified or included.