The dairy industry is the largest livestock commodity on PEI, with 265 farms and a total of 15,500 dairy cows . This number is in sharp decline, in 1989/90 there were 669 dairy farms on the island. Most dairy production has industrialized, like other farming industries.

Herds range from 20 to more than 250 cows, with the average being 50 cows.

Dairy production in the country is part of the supply management system. Overall, dairy producers on PEI hold 1.7% total Canadian quota. Currently there are 9 dairy processing plants in the province.

Several producers on the island have formed an Organic Dairy Club. Ten dairy producers are collectively making the transition into organic dairy farming on the island backed by Amalgamated Dairies Limited and Charlottetown’s Purity Dairy Ltd and in collaboration with Organic Meadow.