Published: Fri, October 05, 2018
Markets | By Josh Butler

NY dairy farmers could benefit from new trade deal with Canada

NY dairy farmers could benefit from new trade deal with Canada

But he believes those profits would mostly be seen by farmers living near the border between U.S. and Canada.

Morneau says Canada is working to ensure producers are protected from potential diversion of steel and aluminum from other countries while also balancing the needs of users.

Trudeau said the USMCA is successful in maintaining fairness and balance between Canada and the USA, a trading partner 10 times its size.

The Dairy Farmers of Canada warned that giving United States farmers an additional 3.59 per cent slice of the US$16 billion (RM66.2 billion) Canadian milk and cheese market would have a "dramatic impact" on the sector.

KIRWAN: But David Wiens with the group Dairy Farmers of Canada argues that overproduction by US dairies is a bigger issue.

"The impacts will be minimal".

MARK HEINZE: There are some pretty major problems in the dairy industry and in agriculture in general right now.

With the USA having access to the Canadian market but not vise versa, den Haan says Canada will become a dumping ground for excess milk from the States.

He also counselled members not to panic, adding things wouldn't change overnight for the dairy industry.

Ottawa joined the USMCA Sunday evening, just hours before a US -imposed deadline.

The agreement reached would allow USA farmers greater access to the dairy market of Canada.

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Still, in the short run, the deal isn't likely to raise the price USA farmers receive for their milk - which in some cases has been below their cost of production.

"We've been sacrificed", he said in an interview. He said Canada produces milk to supply the domestic market and uses the supply management system to balance it and to make sure there is the proper amount of milk that is produced for Canadian consumption. "And that gives us an opportunity to continue to do business with the companies that are looking for USA dairy products".

Bob White is the Director of National Government Relations for the Indiana Farm Bureau.

"Until there's a solution to the global milk glut, the price won't move much at all".

In a climate where consumers are paying close attention to their purchasing decisions and looking for Canadian-made options, more than 1,000 egg farmers proudly deliver one of the few food items produced in all 10 provinces and the Northwest Territories. Whole-milk sales were down more than 50 percent from the 1970s.

"TPP, the Asian agreement, and the European agreement, we're down 10 per cent in the previous year, so, it's the number of cows but it's also, our net income is down 10 per cent". American dairy exports include cheese and milk powder, which can travel long distances without spoiling.

"Dairy farmers across the country have faced challenges with those trade deals". In a news release, Dairy Farmers of Canada, say they're "deeply disappointed" about Canada's concessions in new deal.

The new United States-Mexico-Canada Agreement, known as USMCA, allows the USA greater access to the Canadian dairy market and eliminates competitive dairy classes.

Canadian dairy farmers will be hurt because the trade deal reduces their milk supply protections, such as import quotas. "We have been a leader in encouraging and engaging with other jurisdictions on free trade issue".

In the meantime, the executive branches of all three countries have 60 days to review and sign the agreement, and then the U.S. Congress must ratify it.

"In effect, it's a very minuscule part of the agreement", Bignami said. "We fail to see how this deal can be good for the 220,000 Canadian families that depend on dairy for their livelihood". So you'll soon have both B.C. and USA wines to pick from while buying groceries.

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