Ultrafiltered Milk Sparks a U.S.-Canada Trade Battle

May 15, 2017

A fight over a little-known dairy product sits at the center of increasing tensions between the U.S. and Canada over broader trade issues.

If the dispute goes unresolved, some observers say, it could have ripple effects in global dairy markets. It also could contribute to efforts by some, including advisers within the Trump administration, to dramatically reshape the North American Free Trade Agreement, which some experts warn could be a disaster for U.S. farmers.

Here’s what is happening. U.S. dairy farmers and processors in Wisconsin, New York and Minnesota have been hurt by a newly adopted Canadian pricing policy that encourages Canadian dairies to buy certain types of milk products domestically. The specific product in the trade dispute is a milk-protein concentrate called ultrafiltered milk that is used primarily in cheese-making to increase yields.

In 2016, the U.S. exported $102 million in ultrafiltered milk to Canada, according to the U.S. Agriculture Department. But industry observers estimate that exports have dropped to near zero since February, when Canada created a nationwide dairy classification that lowered the price of Canadian milk used to make ultrafiltered milk.

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Video: Evolution of Beef Cattle Farming

The Clear Conversations podcast took to the road for a special episode recorded in Nashville during CattleCon, bringing listeners straight into the heart of the cattle industry. Host Tracy Sellers welcomed rancher Steve Wooten of Beatty Canyon Ranch in Colorado for a wide-ranging discussion that blended family history and sustainability, particularly as it relates to the future of beef production.

Sustainability emerged as a central theme of the conversation, a word that Wooten acknowledges can mean very different things depending on who you ask. For him, sustainability starts with the soil. Healthy soil produces healthy grass, which supports efficient cattle capable of producing year after year with minimal external inputs. It’s an approach that equally considers vegetation, animal efficiency, and long-term profitability.

That philosophy aligned naturally with Wooten’s involvement in the U.S. Roundtable for Sustainable Beef, where he served as a representative for the Colorado Cattlemen’s Association. The roundtable brings together the entire beef supply chain—from producers to retailers—along with universities, NGOs, and allied industries. Its goal is not regulation, Wooten emphasized, but collaboration, shared learning, and continuous improvement.