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consumers,” the Dairy Farmers of Canada said in a press between Canada and the European Union, offered access
release on Aug. 29 issued ahead of renewed NAFTA negoti- to three per cent of the Canadian market. As a result, the
ations. Current estimates suggest American dairy farmers federal government agreed to provide $250 million to Ca-
now only have access to about five per cent of the market nadian farms through a newly created Dairy Farm Invest-
here. It is estimated that the industry is worth $21 billion ment Program to help them adapt and become more com-
in total. Controls including supply management and steep petitive ahead of the increase in foreign imports expected
tariffs on foreign imports keep control of the domestic from Europe. This program was quickly snatched up by the
market tightly in Canadian hands. first lucky applicants that were quick to apply.
Canada’s supply management system, according to Dairy As another part of the deal, Canada is to eliminate its Class
Farmers of Canada, provides “balance” by enabling Ca- 7 milk policy that makes it cheaper for processors to buy
nadian farmers to act collectively to negotiate price and domestic supplies of ultra-filtered milk, a concentrated
adjust milk production to meet consumer demand. A ingredient used to boost protein content in cheese and
major cause of the problems in the American dairy system, yogurt. While the existing system helped support a wave of
according to some, is that there is no check on the amount new processing capacity that’s being built across Canada,
individual operations are able to produce, resulting in sur- U.S. farmers complained it effectively blocked imports and
pluses that have to be exported or destroyed. dragged down world prices.
U.S. President Donald Trump has pushed for giving Ameri- Over the past few years, we have seen a rise on the dairy
can dairy farmers access to about 10 per cent of the Cana- market of Farm Owners looking to expand their current
dian market. The U.S. argues that tariffs of up to 300 per operations or build new facilities. In response to the recent
cent on dairy products shipped into Canada are blocking trade pact with the U.S., farm owners are putting those
sales. Yet in 2016, U.S. dairy producers shipped $600 mil- plans are now on hold. The Foreign Affairs Minister noted
lion worth of goods duty free to Canada, which equates to that farmers will receive compensation from the federal
approximately five times more than Canadian farmers sold government, but details have still not been made availa-
in the U.S. ble.
There had been a push by the US during negotiations for How this new deal will impact the Canadian Dairy Farms
the Trans-Pacific Partnership to allow access of about 10 will remain to be seen in the years to come. Though we do
per cent of the Canadian market but had fallen once the not anticipate the farm-business growth in the dairy in-
US had pulled out of in 2016. Without the U.S., the modi- dustry we have witnessed in the past few years, wise plan-
fied Comprehensive and Progressive Trans-Pacific Partner- ning in farm expansions should still enable farm-owners
ship (CPTPP) was created and provides access to just 3.25 to increase their operations. In the interim we should all
per cent of the Canadian market to the 15 other member support our Canadian farmers. We can always be assured
states to the agreement. that it was grown ethically and safely, and we’re support-
ing our neighbour.
In addition to the CPTPP, CETA, the free trade agreement
