The government will also contribute $100 million in funding to help spur investments into updating the nation’s dairy processing infrastructure.
The DFA says it’s a good step to help grow the dairy sector but it doesn’t do away with all the damage they say will be caused by the Canada-European Union Comprehensive Trade Agreement, or CETA.
The Dairy Farmers of Canada say CETA will result in up to two percent of milk market share in Canada being taken over by the EU. The DFA says that’s the equivalent of nearly 18,000 tons of cheese that will no longer be produced in Canada, resulting in a loss of $116 million dollars in revenue.
The DFA called the announcement “a significant step in demonstrating their commitment to supply management as well as continued growth of Canada’s dairy sector. However, work still remains to be done and the government has a significant role to play.”