By Harry Siemens – Dairy Farmers of Canada are holding their annual summer meeting in Vancouver amidst the discussions focusing on the 12-nation Trans-Pacific Partnership trade discussions. Media reports suggest the United States, frustrated over the lack of progress with Canada over new rules for agriculture trade could complete a Pacific Rim trade pact that doesn’t include Canada.
The report suggests, a spokesman for Canadian Trade Minister Ed Fast, told Reuters government continues to work with all TPP partners to conclude an ambitious agreement that will create jobs and prosperity for Canadians.
The aid says Ottawa will continue to promote and defend Canadian trade interests across all sectors of the Canadian economy, including supply management.
David Wiens of Grunthal, MB, a vice-president says the mood is fairly positive despite the ongoing TTP trade discussions.
“Whenever there are trade discussions going on, we pay very close attention to that because it is always an area of concern, which ever trade deal it happens to be that they are negotiating,” says Wiens from Vancouver at the start of the meeting. “We also do have confidence the Canadian government certainly understands supply management, how it works, and the benefits. The government has certainly given no indication that things will change this time around in terms of the kind of agreement that they will sign.”
Dairy farmers realize the Canadian government is under pressure from certain other countries particularly United States and New Zealand.
“We are in constant discussion with the federal and provincial governments and there is lots of strong support for the system and we continue to operate on that basis,” says Wiens, who is also the president of the Dairy farmers of Manitoba. “We understand we have our critics out there who don’t necessarily understand how it works, but certainly from an ideology or philosophically viewpoint they may not agree.”
He says the governments recognize that supply management works supporting 250,000 jobs including 12,000 producers across Canada contributing $15 billion dollars to the Canadian economy annually.
“All levels of government are well served by the $3.5 billion of taxes they receive from the industry annually, too,” says Wiens.
The 12,000 dairy farmers across Canada is a number that stays quite stable, even in Manitoba where 300 producers serve up the milk every day for the waiting consumer, although some sell out from time to time, and others come in through various avenues.
While eastern provinces set the price of milk quotas at a flat $25,000 per quota, in Manitoba there is nothing limiting the price of milk quotas nor the size of dairy farms.
In Manitoba, the industry really bases the milk quota price and the ability to purchase quota on milk quality and being infraction free meaning not abusing the system and keeping the quality of milk high.
“There is much incentive there, especially for growing farms including another tool for producers to be extra diligent in terms of milk quality,” says Wiens a robotic dairy farmer from Grunthal. “Our milk quota prices are just over $25,000, down considerably in the last two years. If a dairy farmer has an infraction for milk quality, or that sort of thing, our view is make sure you focus on that before you buy more quota.”
One big item on the agenda this year as always is presenting the $70 million budget for 2016 marketing and promotion plan and getting approval. Marketing involves advertising campaigns and programs like nutrition, so it is basically getting the dairy message into the marketplace highlighting all the different dairy products, milk, cream, cheese, butter, and yogurts.
“We have also seen that over the past few years, there is a lot more interest in milk and dairy products as being a healthy option for people,” says Wiens.
He says the industry is also in pretty good shape in terms of provinces satisfied with the way the market share is divided, but also having discussions and negotiations with the processors in terms continuing to adapt to the marketplace.
“With the equipment they [processors] have today, totally different from 20 or 30 years ago, we continue to adapt our policies for the current situation,” he says. “Now we are discussing with the processors to insure it continues to be a win win situation for us and our stakeholders, something that will take a lot of time now, and into the future.”
Source: Siemens Says