An all-provinces approach was to be established by Feb. 1, 2017, but that seems unlikely, so Ontario, for one, has tackled the problem alone with some success.
But American producers appreciated serving Canadian demand and are hungry for more. U.S. dairy groups have expressed this directly to Trump.
The problem is Canada’s dairy sector has never really had a strategy – other than protectionism. In today’s world, that won’t do.
Canadian dairy producers only have themselves to blame for this mess.
The Canada-European Union Comprehensive Economic and Trade Agreement (CETA) will also complicate the supply management system. Based on the 17,000 tonnes of European cheeses about to come our way, Canadian producers will lose two per cent of the market. But producers and artisan cheese makers will probably be generously compensated by the federal government.
In addition, the Trans-Pacific Partnership (TPP) could severely compromise the integrity of supply management. However, growing global economic nationalistic sentiment – led by Trump – will likely kill the deal.
Canada’s dairy sector is struggling and in dire need of a vision, but faces a severe test south of the border.
Trump, who is willing to challenge anything 140 characters at a time, could become the Canadian dairy sector’s worse nightmare. If he decides to care, he’ll have the support of Congress and a trade-happy cabinet.
The Canadian dairy industry’s status quo no longer suffices and most dairy farmers know it. The system is slowly falling apart. The Canadian Dairy Commission Act needs to be changed and modernized, as does a self-serving quota system that does little for rural economic growth.
The system does not focus on innovation and could never compete globally. It needs to be more market-focused to foster excellence in the sector. Our dairy farm management practices don’t measure up globally.
The quality is there but our cost structure would cause the entire sector to collapse overnight if trade borders were opened.
Trump may be just what the Canadian dairy sector needs to become relevant to our economy. Let’s hope it’s not too late.
Source: TheGuardian
Link: http://www.theguardian.pe.ca/opinion/2017/1/17/can-trump-save-canadian-dairy-industry-.html