Canadian tariffs worry American dairy farmers

 

Canadian tariffs on dairy products from the United States that went into effect today have drawn worrisome reports from Wisconsin and Ohio.

Wisconsin news media reported that the dairy industry ships protein products that are in surplus from butter manufacturing.

Ohio news media said “with Canada ranking among the top foreign destinations for U.S. dairy commodities, regional industry leaders warn that tariff barriers could strand finished inventory and weigh heavily on farmgate mailbox prices.

“When export avenues contract, commercial milk solids back up into domestic butter, powder, and cheese vats, placing downward pressure on Federal Milk Marketing Order Class prices and narrowing the operating margins of producers already struggling to break even.” one reporter wrote.

Global inflation at 4.8 per cent

The Organization for Economic Co-operation and Development has pegged the global inflation rate at 4.1 per cent.

Inflation rose in13 countries and declined in 14, it said.

Energy inflation was at more than 10 per cent for the fourth month in a row, but food inflation declined in 23 countries and by two per cent in some, but not Canada where it was 4.2 per cent.

In the G20, year-on-year headline inflation fell to 3.9 per cent in July, from 4.1 per cent in June. 

Headline inflation in China halved, reaching 0.5 per cent in July. It also declined in Brazil, India, Indonesia and South Africa, while it rose in Argentina and remained stable in Saudi Arabia.

Trump ups pressure on packers

 

United States President Donald Trump is increasing pressure on the biggest beef packers in the United States, including the two that dominate the Canadian market: JBS and Cargill.

Under one of his executive orders thee United States Department of Agriculture has been directed to prioritize investigations into potential Packers and Stockyards Act violations and increase enforcement resources and staffing. 

The department was also instructed to coordinate with the Department of Justice and report to the president on current enforcement actions, resource needs and plans to strengthen enforcement over the next year.

The aim is to find and stop price-fixing and market dominance abuses.

The administration also targeted processing capacity, directing the agriculture department’s Food Safety and Inspection Service to expand the Cooperative Interstate Shipment and Talmadge-Aiken programs. 

The move is intended to allow more meat produced at qualifying state-inspected facilities to be sold across state lines, increasing competitive pressure on the big companies.

CFIA suspends a Quebec licence

 

The Canadian Food Inspection Agency has suspended the licence held by Boulanger Bistan of Quebec, effectively putting it out of business until it is compliant with food safety regulations.

It has suspended or cancelled more than 20 licences this year held by Quebec companies, more than all of the rest of Canada.

Are they worse than other Canadian food companies, or has the CFIA. inspection staff there suddenly woken up or become less forgiving?

Swine research gets $3.1 million from feds

 

The federal government has announced $3,111,486 for the Canadian Pork Council to invest in the Atlantiic Veterinary College which will use it for tools to diagnose swine diseases.

The new equipment and technology will be able to scan for a number of worrisome swine diseases from a single sample.

Agriculture Minister Heath MacDonald said farmers care deeply about their animals an work hard to protect them against infectious diseases.

“By investing in swine health surveillance solutions, we are continuing to equip the industry with the tools it needs to detect and respond quickly,” he said.

                                    

Chicken farmers support processors

 

Chicken Farmers of Ontario has announced the companies it has chosen to support through its Growth Program for Processors launched last year.

The marketing board operates a quota-like system to allocate supplies among the province’s processors. That policy came after pricing broke down amidst a battle between Ontario and Quebec processors who were offering premium prices to buy chickens.

The marketing boards deemed that a threat to supply management which is granted by governments on the condition they keep their markets supplied at controlled prices.

Under this year’s Ontario Market Opportunity Policy the board allocated chickens to Farm Fresh Poultry Ltd., Hafiz Halal Poultry Inc.,Pinty’s Delicious Foods, Sargent Farms a division of Sunrise Poultry, and Simple Path Farms Poultry Ltd.

Those supported under the new entrant program are Country Poultry Processing Inc. and Nipissing Game Farm Inc. 

Existing new entrants who are receiving additional support this year are Amir Specialty Poultry , Laplante Poultry Farms Ltd. / Ferme Avicole Laplante Ltèe. and Simple Path Farms Poultry Ltd.

Chobani investing in Pennsylvania

Chobani will invest about $1.7 billion Cdn over the next five years to establish a major manufacturing and warehouse hub in Allentown, Pennsylvania. 

The project represents the largest single private sector investment in the history of Pennsylvania’s agricultural sector.

As part of an expanded transaction with Keurig Dr Pepper (KDP), Chobani is purchasing an existing 1.5-million-square-foot facility in Upper Macungie Township for $125 million, with full commercial dairy processing scheduled to commence in 2027.

Chobani will use it to make high-protein, lower-sugar ultrafiltered milk, ready-to-drink protein shakes, dairy creamers, and cold-brew coffee beverages under its La Colombe brand. 

The location provides significant supply-chain advantages, positioned within a 500-mile radius of approximately 40 percent of the U.S. population, it said.

Ontario and Quebec could also say they have huge U.S. markets within 500 miles.