Consumer demand for protein packed foods and drinks is forcing a massive restructuring of the dairy industry in New Brunswick.

Agropur plans to close its Sussex area and Truro plants by 2028. The company will shift focus to expanding and modernizing its Bedford and Miramichi facilities.

This move addresses a growing need for specialized dairy processing. According to a recent report from CBC News, younger consumers want protein in everything from nutrition bars to sports drinks.

Paul Gaunce operates Combination Holsteins in Keswick Ridge. He accepts the planned closure of the Sussex area plant with mixed emotions. He notes the province is lucky to hold onto the Miramichi plant.

“We needed capacity, we needed new technology and upgraded plants,” Gaunce told CBC News. “The bonus is the Miramichi increase in production as well. So sad, but happy long term for the dairy industry.”

The Capacity Problem

New Brunswick and Nova Scotia produce about 377 million litres of milk a year. Local processors buy 260 million litres. Another 70 million litres go to Ontario and Quebec through a regional supply management agreement. This leaves a surplus of nearly 50 million litres.

Wietze Dykstra chairs the Dairy Farmers of New Brunswick. He says the region desperately needs more processing capacity.

“All our plants are full,” Dykstra said. “We have to send that surplus to Ontario and Quebec.”

Agropur will spend around $200 million to modernize the Miramichi plant. This expansion will increase regional capacity by 130 million litres. The provincial government also provided $2.4 million in February to add 15 jobs and boost manufacturing capacity by 50 percent.

Meeting Consumer Demand

Karen Versloot has worked on the Keswick Ridge farm for over 30 years. She says consumer needs drive the industry growth.

“If you are looking for a good source of protein and that is affordable, a dairy product is the way to go,” Versloot said.

Farmers are even changing how they feed and care for their cows. They want to reduce fat and increase protein concentrations in the milk.

The Bedford plant will soon manufacture a liquid protein product for specialty sports drinks and cheeses. It will also take over butter processing from the Sussex area plant.

Frequently Asked Questions

Why is the Sussex dairy plant closing?

Agropur is restructuring to meet rising consumer demand for protein products. The company is consolidating operations and expanding its Miramichi and Bedford plants instead.

What will the Miramichi plant produce?

The modernized Miramichi plant will continue to process traditional fluid milk but with a 50 percent increase in manufacturing capacity.

How much milk does New Brunswick and Nova Scotia produce?

The two provinces produce approximately 377 million litres of milk annually.