Canada’s milk supply has been on the rise, but export demand for U.S. dairy products remains strong.

According to a report from the Global Agricultural Information Network, U.S. cream and butter exports to Canada are good. Overall, dairy sales in Canada are back to pre-pandemic levels now through September.

Canadian milk production was up nearly 3% year-over-year. That said, the country remains the top market for U.S. butter and milk fat, accounting for more than 30% of U.S. exports over the past five years. The recent flooding in Canada’s southwest, where roughly 9% of the country’s milk is produced, could also mean increased U.S. imports to end the year.

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