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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.

CHARLEBOIS: The Canada Royal Milk story Ottawa doesn't want to explain Back to video

That is why newly released government records related to Canada Royal Milk in Kingston, Ont. 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.

On the surface, it looks like a success story. Jobs were created. Manufacturing capacity was added. Canadian farmers gained another customer for their milk. The company invested heavily in Canada.

But newly released documents reveal a much larger story.

What the documents reveal

The facility was never primarily designed to serve........

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