Groups call Canada’s dairy pricing policy sensitive and urgent
By Diego Flammini
Assistant Editor, North American Content
Farms.com
American farm organizations representing the country’s dairy industry wrote a joint letter to President Trump asking him to discuss Canada’s milk pricing policy during Prime Minister Justin Trudeau’s visit to the White House.
Last April, Dairy Farmers of Ontario implemented a strategy to create a new milk ingredient class, allowing Canadian ingredients to be more competitive domestically. This class could lead to a national strategy in Canada and the letter’s signees say it’s concerning to America’s dairy sector.
According to the letter, Ontario’s program has cost American companies US$150 million in exports and has impacted dairy farmers, dairy processors and rural communities.
“American dairy producers and processors want a fair and level trade relationship, and have deep concerns about proposed changes to the Canadian supply-side management system, which are designed, in part, to discourage U.S. exports,” Tom Vilsack, CEO of the U.S. Dairy Export Council and former Secretary of Agriculture, said in the letter.
The National Milk Producers Federation (NMPF), International Dairy Foods Association (IDFA) and the National Association of State Departments of Agriculture (NASDA) are also signees on the letter.
With the possible renegotiation of NAFTA looming, the groups say there’s no more important time to ensure trade obligations are adhered to.
“(This) comes at a time when compliance with the letter and spirit of trade agreements is of paramount importance, both here in Washington and around the world,” Jim Mulhern, president and CEO of NMPF, said in the letter.
House Speaker Paul Ryan and Chrystia Freeland, Canada’s Minister of Foreign Affairs, also discussed dairy trade during their meetings.
“We had a productive conversation about how we can enhance (our) ties, including by strengthening NATO and improving dairy market access,” Ryan said in a Feb. 7 press release.
On Jan. 30, a letter signed by dairy organizations, including Dairy Farmers of America and Michigan Milk Producers Association, was sent to governors in 25 states, asking them to ensure Canadian policymakers stop the implementation of the milk pricing system.
“This trade cannot be a one-way street with Canada expecting to enjoy the benefits of exporting its products of interest to our market while denying a sector accounting for hundreds of thousands of jobs in rural American reliable access to the Canadian market,” the Jan. 30 letter says.