Although the policy entailed a heavy domestic subsidy cost, it lowered the prices for this milk class to create incentives to produce domestic ultra-filtered milk and better compete with USA -produced imports.
"While we appreciate the interest and the focus and certainly the aggressive action (from the federal government) - I think much more aggressive than many of us expected - our hope still is that that would be more than just USA action, that that would prompt some Canadian action", Walker told reporters in Madison on Wednesday.
"We have been helped as a dairy industry by NAFTA access to Mexico", he said.
Such a program could be expected in an emerging market or a highly-organized economy. It's time to get rid of supply management. Since Europe eliminated quotas previous year, Canada is the only developed economy in the world with such a scheme. One classic New Deal solution to this problem is known as "price parity:" soft supply restrictions to keep the price from collapsing, coupled to some subsidies to top up farmer income if it falls too far below the average for the rest of workers. As Canada's total cheese market is $4.4 billion, to protect 4% ($180 million) of that market the feds spent $350 million. "The end result is job loss, loss of income for farmers, and in some cases, farmers having to shut down their farms", the Dairy Farmers of Canada advocacy group said in a media release. "Been fighting for NY dairy farmers on this".
First, our dairy industry is highly inefficient.
Until recently, unfiltered milk has entered Canada duty-free from the US due to its status as a protein ingredient rather than a dairy product. Switzerland is the only place where production is more expensive.
But DFA officials will not disclose just how numerous affected producers they have agreed to purchase milk from going forward. Stocks for barrels are still "sloppy, but blocks supplies are mixed", said DMN, but "several fast food chains are making a move to use more natural cheese on their menus".
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The Canadian dairy industry has said the milk-reclassification policy did not change import rules or impose any import taxes. But consumption of fluid milk per capita has dropped for nearly three decades. So our system has a lot of fiscal baggage.
Tony Senn, who owns Swiss Miss Farms near Fox Lake, said he signed a six-month contract last night after DFA sweetened initial offer to farmers.
DMN says butter production continues at active levels with cream available.
Unfortunately, the world economic climate - led by the Trump administration and Brexit - is forcing the issue. "We're all doing the same thing".
The North American Free Trade Agreement (NAFTA) must be replaced with a transparent trade agreement that ensures farmers in all three nations-Canada, Mexico, and the United States-receive fair prices for their production, that consumers are guaranteed the right to know the content and origin of their food, and that strong environmental protections are put in place to protect the sustainability of rural communities. "I think it's clearly gotten Canada's attention".
Quotas are given to farmers so that they can produce the commodities needed.
The leadership should have come from Ottawa, but it didn't - government after government over decades.