The Ontario Dairy Council is vying for an open market for the 3-litre milk container, but the Dairy Farmers of Ontario feel that the new milk jug size may out-compete the 4-litre plastic bag.

One argument against the new size is that the 3-litre container will cause costumers to buy less milk. President of the Ontario Dairy Council, Christina Lewis, was quoted in The Star as saying, “The farmers will not agree to opening up the market to a 3-litre, because there’s concern that perhaps the sales in 4-litre will move toward a 3-litre instead.”

Not only is the size and amount an issue, but keeping the prices balanced is also something to consider. Currently, the 4-litre container is a “loss-leader” for grocery stores. It may not bring much profit for the store, but it attracts the costumers. If the 3-litre container were to oust its larger counterpart, then it may cause milk to lose its loss-leader status.

In Ontario’s Milk Act, it stipulates that containers can’t be less than 500 millilitres or more than 4 litres. Most sizes of containers are allowed within these boundaries, but the 3-litre is restricted.

However, in December, Ontario’s farm products marketing board allowed 3-litre milk jugs to be sold at Mac’s Convenience Stores for a one-year pilot program.

The Ontario Dairy Council appealed the decision. They believe that this would give an unfair advantage to some processors. The 3-litre containers should be able to be sold on any store’s shelf.

The issue is now to be resolved in the Agriculture, Food and Rural Affairs Appeal Tribunal. The date for the tribunal hearing is still pending.  PD

—Summarized by Progressive Dairyman staff from cited source