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Legally Spread: The Butter Wars

Litigation
October 23, 2025
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Jason R. Filek

Butter vs. Margarine: More Than a Breakfast Debate

Few things stir up as much passion at the breakfast table—especially in dairy country—as the choice between butter and margarine. But did you know this creamy rivalry was once fought not just in kitchens, but in legislatures and courtrooms across Canada and the United States? For decades, the law itself played referee in what became known as the Butter Wars.

Canada’s Margarine Ban

Canada’s dairy farmers have long had a stake in protecting real, delicious butter from its cheaper, vegetable-oil-based rival. Between 1886 and 1917, it was actually illegal to manufacture or sell margarine in Canada. The ban was briefly lifted during World War I, when butter was scarce, but reinstated in 1923.

The Dairy Industry Act, declared: “No person shall manufacture, import into Canada, or offer, sell or have in his possession for sale, any oleomargarine, margarine, butterine, or other substitute for butter…”  If you broke this law, you could be fined—or even sent to jail for up to a year! (Yes, hard time for soft spread.)

This law was challenged before the Supreme Court of Canada in the famous Margarine Reference (1949), where the Court struck down the national prohibition. But Quebec—ever distinctive—added its own twist. Margarine could be sold, but not if it looked like butter. For decades, margarine had to be white or a ghostly pale shade to avoid deceiving honest, respectable butter-lovers.

To get around this, manufacturers included a small capsule of yellow dye in each bag. Families (apparently) would knead the bag until the margarine turned buttery yellow—a strange kitchen workout indeed.  Quebec didn’t repeal that rule until 2008, but since that time yellow margarine has been permitted in La Belle Province.

South of the border, things got even more colourful. Wisconsin—“America’s Dairyland”—banned margarine outright for over seven decades, and to this day, restaurants there still can’t serve it unless a customer specifically asks.

Meanwhile, the U.S. federal government joined the fun, taking the opportunity to slap a hefty tax (sound familiar?) on margarine. If a manufacturer wanted to colour margarine yellow to resemble butter, the tax rate jumped fortyfold!

Why It Mattered

Looking back, these laws seem quirky, even comical. But they reveal how high the stakes were for farmers and food producers. For dairy farmers, butter wasn’t just food—it was livelihood, heritage, and pride.  Today, chefs and food lovers have rediscovered what farmers have known all along: when it comes to taste and tradition, butter simply can’t be beaten.

The Butter Wars remind us that even the simplest things—like what we spread on toast—can tell a rich story about our history, our values, and our laws. Laws may change, but one truth remains: I’m choosing butter every time.

Jason R. Filek

This post is brought to you by Baker Newby LLP, proud to serve communities across the Fraser Valley with practical, effective legal guidance.

Written by Jason R. Filek, a civil litigator with over 20 years of courtroom experience and a practical approach to resolving disputes. When he’s not defending clients, he’s defending butter!

 

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