Canadians pay a premium for dairy products because they have been told that supply management protects Canadian farmers, strengthens domestic production, and safeguards our food sovereignty. Whether one supports the system or not, that has always been the bargain: consumers pay more in exchange for stability, predictability, and a secure domestic food supply.

That is why newly released government records related to Canada Royal Milk in Kingston, Ontario deserve far more attention than they have received.

The story began a few years ago, when construction started on what would become Canada’s largest infant formula manufacturing facility. Owned by Chinese dairy giant Feihe, the project was celebrated as a major investment in Canada’s dairy sector. After years of regulatory reviews and approvals, the company received authorization from Health Canada and the Canadian Food Inspection Agency in March 2024. Production began shortly thereafter, and in July 2024 Canada Royal Milk officially launched its Niuriss infant formula brand.

The facility was never primarily designed to serve Canadian consumers. Early planning documents projected that approximately 85 per cent of production would be exported to China. Canada was expected to account for only a small fraction of sales. In other words, from the outset, Kingston was envisioned as an export platform.

That fact alone raises important questions. And all of this is occurring while Canada continues to face periodic baby formula shortages and Canadian parents are paying the price. Over the past five years alone, baby formula prices have increased by more than 70%.