Canada’s dairy companies boost production amid ‘national cottage cheese shortage’

Canada's dairy sector is responding to a perceived shortage of cottage cheese, a high-protein product that has gained popularity recently. According to Suzanna Dalrymple, president and CEO of Gay Lea Foods, which produces Nordica cottage cheese, the company is expanding its Toronto facility due to increasing customer demand. The expansion will involve a $200 million investment to significantly increase production capacity at the Clayson Road dairy manufacturing facility.

Statistics Canada reports that national production of cottage cheese has risen from 8,571 tonnes in the first quarter of 2025 to 9,870 tonnes in the first quarter of 2026, marking a 15% increase in just one year. A half-cup serving of Nordica cottage cheese contains approximately 12 to 14 grams of protein, which exceeds 20% of Health Canada's recommended daily protein intake for most individuals.

Sylvain Charlebois, director of the Agri-Food Analytics Lab at Dalhousie University, attributes the surge in cottage cheese consumption to people seeking more affordable animal proteins. TikTok videos featuring cottage cheese have further fueled interest, with the platform playing a significant role in popularizing the product. However, Charlebois believes that cottage cheese's popularity is not a passing fad, citing the investments made by major dairy players as evidence of long-term commitment.

Gay Lea Foods' expansion is expected to be completed by 2028, indicating that the company's plans are not merely a short-term solution but a sustainable approach to meeting the growing demand for cottage cheese.