I've heard it said that you're not supposed to cry over spilled milk, but in this case, what the Canadian government is doing to this dairy farm is truly despicable.
They have the supply, but Canada forces them to dump it.
When government forces private business owners to waste their supply, but demand stays stable, guess what happens to prices?
This is Economics 101, my friends.
The government pays dairy farmers for a certain amount of milk, a quota, and any milk produced beyond that has to be dumped so that the government can control the market.
If an individual farmer produces under his/her monthly quota, the remaining quota capacity is temporarily allocated to the other dairy farmers in the province to be filled. This ensures consumers will have access to a continuous supply of fresh milk.
It's all in the name of fairness!