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The Dairy Farmers of Canada are still waiting for the compensation they are owed for losses stemming from recent international trade agreements. They have reportedly been waiting for more than a year for an update about the balance of compensation they are owed.
The Dairy Farmers of Canada (DFC) represents Canadian dairy producers. It is engaged in policy, lobbying and promotional activities on behalf of Canada’s dairy farmers. The DFC seeks to promote the sustainability of dairy production in Canada.
Dairy Farmers of Canada recently held its Annual General Meeting, which included around 200 Canadian dairy farmers who attended virtually. Many of the farmers expressed concern that the government has been slow to honour its commitment to “full and fair” compensation of the market share that was relinquished to dairy producers outside of Canada.
In 2017, Canada and the European Union’s trade agreement (CETA) took effect and the next year, Canada’s trade agreement with Trans-Pacific countries (CPTPP) came into force.
The government had promised Canada’s dairy farmers that they would receive compensation for these two trade agreements; however, the dairy farmers say the government has not announced a firm timeline to satisfy their promise.
A new trade agreement with the United States and Mexico (CUSMA) came into force on July 1, which will further affect Canada’s dairy farmers.
As a result of these recent international trade agreements, Canada will reportedly have effectively outsourced 18% of its domestic dairy production to foreign countries by 2024.
According to dairyreporter.com, there are more than 5,100 dairy farms in Quebec, which generate more than $2.6 billion. Dairy farming in Canada provides approximately 83,000 jobs and contributes $6.15 billion to Canada’s gross domestic product. More than $1 billion in taxes is generated by Canada’s dairy production.
“Right before the 2019 election, the government announced a first installment on the compensation for CETA and the CPTPP, which was a fraction of the overall total farmers were promised,” DFC President Pierre Lampron said. “What happened to the commitment towards full and fair compensation for the remaining years? What about the compensation for CUSMA?”
Pierre expressed his frustration with the government’s delay in providing the promised compensation to the dairy farmers, who are experiencing a financial pinch from the international trade agreements.
“Every now and then, when dairy farmers get impatient, the government reminds us of its commitments – but the time to deliver on those promises is now, since the consequences of those agreements are already being felt on the farm,” he reportedly said.
According to Dairy Farmers of Canada, the CUSMA would transfer the equivalent average production of about 520 dairy farms in Quebec to the United States. Milk from the United States, which does not necessarily meet the same quality standards as milk produced in Canada, would be sold in Canada.
In addition, the CUSMA reportedly establishes restrictive thresholds for Canadian dairy exports. Exceeding these thresholds would reportedly trigger significant penalties that could limit the competitiveness of Canadian dairy globally.
DFC is not just concerned about the effects these international trade agreements are having on the Canadian dairy industry. They worry that future trade agreements could create a significant economic impact on other export sectors.
Dairy Farmers Canada is calling on the government to finally announce a payment schedule for the remaining amount of compensation owed to dairy farmers for CETA and CPTPP, and to announce a specific timeline to provide compensation for CUSMA. They are asking the compensation to be paid in the form of direct payments in order to be fair and equitable to all dairy farmers.
Recognizing the value of Canada’s dairy, McDonalds Restaurants of Canada Limited has said it will feature the DFC Blue Cow logo this summer on some of its ice cream products to show customers that the dairy products are made with 100% Canadian milk.
Jean-Guillaume Bertola, McDonald’s Canada director of brand strategy, said, “This relationship with Dairy Farmers of Canada is one of the many ways we are showcasing our commitment to our Canadian-based suppliers and farmers, and providing quality ingredients to our guests coast-to-coast.”
The fast food chain has joined a growing number of companies that are using the DFC Blue Cow logo to identify dairy products that are made with Canadian milk. According to dairyreporter.com, nearly 500 licensees and more than 8,000 products feature the Blue Cow logo.
The Blue Cow logo has recently been recognized as one of the most influential logos in Canada, and 9 out of 10 Canadians reportedly recognize the logo.
What do you think about Dairy Farmers of Canada still waiting for compensation from the government? Tell us your thoughts in the comment section below!
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