Amid trade negotiations, political changes and a market shift, dairy producers are maintaining a progressive attitude through 2026. Progressive Dairy asked a few frequent authors what questions they are hearing and to summarize the state of the industry in their respective regions.
Panelists included: Chris Church, owner of Central Dairy Solutions; Jackson Matschke, Western Canada sales manager with Grober Nutrition; Suresh Raja Neethirajan, an associate professor and research chair in the department of animal science and aquaculture at Dalhousie University; and Pedro Nogueira, a nutritionist with Trouw Nutrition.
Here are their responses.
What is the number one question you hear from producers?
CHURCH: How will changes in protein prices affect me, and how much can I spend on changes and still get a return? Most producers view the current shift in protein demand as positive, but no one likes uncertainty. The boards are doing their best, but changing our components is akin to steering an oil tanker – it will take time and patience. I have started running monthly scenarios for clients to help them understand pricing changes, which can be helpful when working with their nutritionists on potential opportunities.
MATSCHKE: It’s a tie: 1) How long will the price of calves stay this high? 2) What’s driving the cost increases on inputs?
NEETHIRAJAN: How can these technologies help me make better decisions on my farm today? Whether the discussion involves artificial intelligence, methane monitoring, animal health technologies, precision livestock farming or digital twins, producers are primarily interested in practical outcomes. They want to understand how technology can improve operational efficiency, reduce labour burdens, support animal welfare, strengthen environmental stewardship and maintain profitability in an increasingly complex production environment. Producers are looking for trusted, easy-to-use systems that convert complex data into clear recommendations and actionable insights. The technologies that will have the greatest impact are those that seamlessly fit into farm operations and help producers make faster, more informed decisions with confidence.
NOGUIERA: The number one question I get lately is related to milk components production, namely milk protein. Increased consumer and processor demand for high-protein dairy products has led to changes in the milk payment structure. This has created some anxiety among both dairy producers and nutrition advisers. While there is clear financial opportunity in producing higher-protein milk, producers are still required to fill quota based on milkfat. At the same time, adjusting milk protein production and concentration is not as straightforward as manipulating milkfat, which adds to the challenge.
In your facet of the industry, how would you describe the state of dairy?
CHURCH: We are balancing the positives of beef-on-dairy, lower commodity prices and reasonable interest rates (compared to historic levels) against higher fuel and wage costs. Trade threats are always a concern, but producers who focus on what is within their control remain optimistic about our current and future state.
MATSCHKE: The state of the dairy industry across Canada is generally positive, with variations. Western Canada (British Columbia in particular) is expecting significant quota increases over the next 12-18 months. This has led to a lot of construction and cows being retained in the expectation that more milk will be needed. This will likely lead to a stronger milk replacer market, as is normal when demand for milk is particularly strong. There are also frequent discussions about the value of bull- and beef-cross calves, if they will go higher and how long they will persist.
NEETHIRAJAN: The Canadian dairy sector is undergoing a significant digital transformation. Producers are increasingly adopting technologies such as automated milking systems, precision livestock monitoring tools, environmental sensors, computer vision, wearable devices and advanced data analytics. These technologies are generating unprecedented amounts of information about animal health, behaviour, production, reproduction and environmental performance. At the same time, dairy farms are navigating growing pressures related to labour availability, economic uncertainty, climate resilience, animal welfare expectations, cybersecurity and greenhouse gas reduction targets. While the volume of on-farm data continues to expand, a key challenge remains – translating that data into reliable, actionable intelligence that supports day-to-day decision-making and delivers measurable value at the farm level.
NOGUIERA: The dairy industry is very dynamic and open to innovation. Within the feed industry, we are frequently asked about the possibility of using different, nontraditional feed ingredients to help reduce feeds costs. Producers are also trying new forages and are more concerned with the quality of those forages, both in terms of their production as well as their preservation (for example, better ensiling techniques). Feed remains one of the largest expenses on the farm, and this, along with the uncertainty related to trading negotiations, puts more pressure on both producers and nutrition advisers to maximize forage quality and feeding efficiency while carefully managing input costs.
