Friday, August 18, 2017

Some American dairy farmers support supply management

There are some dairy farmers in the United States who like Canada’s supply management system and they are writing letters to the U.S. trade negotiator, Robert Lighthizer, urging him to lay off of the Canadians.

In one letter, the National Family Farm Coalition and Institute for Agricultural & Trade Policy told Lighthizer: "Do not pressure Canada to weaken its dairy supply management program.

“Undermining Canadian supply management will not bring a large increase in U.S. dairy exports.

“Supply management helps ensure that dairy prices are high enough to cover the cost of milk production and keep Canadian family dairy farmers in business."

The National Farmers Union wrote another letter that said: "Canada's pricing system on dairy has received substantial criticism from national dairy organizations and the Administration ... The U.S. should support other nations' sovereignty.

“In other words, the U.S. should not work to undermine a system that benefits family farmers on either side of the border."

"I would hate to go after a program that's protecting farmers, when that's really what farmers in the U.S. are asking," said Darin Von Ruden, who has a 50-cattle, multi-generational farm and heads the Wisconsin Farmers Union.

"Canada's supply-management program might not be perfect. But it certainly is doing a good enough job to make sure that those farmers, especially on the dairy side in Canada, can continue to stay in business and hand that farm on to the next generation."

These are minority opinions. The organization with the largest membership of U.S. dairy farmers is outspoken in its criticism of Canadian supply management and is lobbying Lighthizer to bargain hard to gain greater access to the Canadian market.

During the Trans-Pacific Partnership negotiations, Canada was willing to offer a 3.25 per cent increase in access to the Canadian dairy market.


Lighthizer has also made it clear he wants Canada’s provincial milk marketing boards to scrap their new low-priced category for milk that’s processed to reduce water content. 
That pricing strategy was adopted to stem erosion of the Canadian farmers’ market for cheeses and similar products.