Gay Lea Foods Co-operative Ltd. announced Tuesday that it plans to expand its dairy manufacturing facility in Toronto in an effort to meet growing domestic demand for dairy products, particularly cottage cheese .
The co-operative, a major Canadian dairy producer owned by about 1,200 dairy farmer members in Ontario and Manitoba, said it’s investing over $200 million in the expansion to help address what it says is a “national cottage cheese shortage.”
Cottage cheese has grown in popularity over the past few years as people seek high-protein sources – a momentum that’s been amplified by recipes posted on social media. The dairy product is now one of Canada’s fastest-growing grocery categories.
“We’ve really seen in the last several years, consumers using it a lot for health and wellness, as it’s extremely versatile,” Gay Lea Foods chief executive Suzanna Dalrymple said in an interview. “ So, given this increase in popularity, we’re looking forward to being able to meet that demand with this expansion.”
Cottage cheese sales have grown 16 per cent by volume and 22 per cent by value a year over the past three years, said Gay Lea, citing market tracking by Nielsen. It said nearly half of Canadian households now purchase the product, with consumption up 24 per cent in the past year alone.
The expansion of the Clayson Road facility in Toronto will create 75 new jobs when it is completed in 2028.
Gay Lea said about one in three purchases of cottage cheese in Canada is for its brand, Nordica, which is manufactured and sold exclusively within Canada.
“We’re Canadian-owned. We really want to make sure that we’ve got strong food sovereignty in Canada and that we’re feeding Canadians,” said Dalrymple.
The United States has said it will impose a new 50 per cent tariff on a range of Canadian goods, including dairy, starting next week, which could heavily affect the sector.
Dalrymple said dairy, like many Canadian industries, is concerned about trade tensions with the U.S.
“We’d like to get back to the business of focusing on growing our country and looking after our businesses and our families,” she said. “So really what we’re doing in the meantime is focusing on what we can control, and what we can control is investing in Canada and ensuring we can build a thriving industry here, so that we can continue to feed Canadians and help make sure family farms are sustainable for generations.”
• Email: dpaglinawan@postmedia.com
Gay Lea to expand Toronto dairy plant to address 'national cottage cheese shortage'
2026-08-11 12:01:09
