Modernization means having the capacity to make better use of all milk components produced in Canada in order to make value-added products. We produce excellent cheeses, yogurts, and butter, all of which require huge quantities of fats. Like in many countries, including the U.S., Canada has a surplus of non-fat solids. A way of dealing with that surplus is by subjecting it to a drying process and turning it into skim milk powder. It can, however, be used for animal food. It might be possible to export it, but that would mean subsidized exports, and we'll no longer be allowed to have export subsidies by 2020. So it's a short-term solution. Ultimately, we need to develop new, mostly domestic, markets to make better use of these non-fat solids.
It may be possible to use them the same way that diafiltered milk is used in other products, for example. We hear a lot about diafiltered milk being used in cheesemaking, but it's also used to make yogurt and energy drinks. We could also see these products frequently being used in food processing because they have properties that allow processors to achieve certain objectives.
So modernization of the dairy sector means providing Canadian users with a wider range of products for use in dairy processing and further processing. Both of those sectors make use of all components, not just fats—which are always in demand—but also non-fat solids—which are surplus products.