Canadians in crisis; dumping milk and looking for new pricing scheme

Although “mum” has long been the word on Canada’s willingness to flex its quota program, a confidential report presented last week lays out a plan for the end of Canadian quota. According to the report, all may not be as it seems north of the border.
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Canada’s The Globe and Mail reports that it obtained a confidential report presented last week to the Dairy Farmers of Ontario (DFO), which lays out the problem:

  1. Imported “designer” dairy ingredients are replacing Canadian milk in products such as milk and cheese
  2. There’s a glut of unwanted milk, which is being diverted to animal feed or even being dumped
  3. Government support for the supply management program is waning in Canada

“The industry is approaching a crossroads beyond which the existing policy framework is no longer sustainable,” the Globe and Mail said the report concluded. “A policy environment, which levers export potential within existing trade agreements and enables the marketing system to be operated with more milk and larger growth allowance, is essential.”
Milk protein isolates are the named import replacing Canadian dairy products, which come in duty-free from the U.S. and Mexico, and will face a similar scenario when the new European trade agreement is implemented.
A second, world milk price
The report states that a world-price for extra milk, sold at much lower levels than Canada’s inflated price, could cure the situation. However, a Canadian trade lawyer and official said the plan was unlikely to survive as it would be deemed an illegal subsidy.
 
Source: DairyHerd
 

Mirá También

Así lo expresó Domingo Possetto, secretario de la seccional Rafaela, quien además, afirmó que a los productores «habitualmente los ignoran los gobiernos». Además, reconoció la labor de los empresarios de las firmas locales y aseguró que están «esperanzados» con la negociación entre SanCor y Adecoagro.

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