Dairy leaders expect the federal government to stand behind the sector at NAFTA

Canada too small to solve U.S. milk overproduction problem, they say.OTTAWA—Dairy farm leaders from across Canada delivered a clear message about their expectation the federal government will live up its promises to protect the sector during the NAFTA negotiations.At the same time, they carefully sidestepped reporters' speculations about increased access for American dairy products as part of the possible outcomes to the trade talks in Washington.The basic message, delivered by President Pierre Lampon from Quebec and Vice President David Weins of Manitoba at a news conference near Parliament Hill, was that dairy farmers have already given up a lot in the European and Pacific free trade talks. The $250 million lost annually in milk production from those deals affects producers as well feed manufacturers, processors, veterinarians and truck drivers.Joined by representatives from the other provinces at a long table in a hotel meeting room, they pointed out that Prime Minister Trudeau has said repeatedly the dairy sector is worth fighting for. “We call on the government to ensure that any final NAFTA deal has no further impact on our dairy sector. We don't want to be negatively impacted again.”Ralph Dietrich, Chairman of Dairy Farmers of Ontario, said the American surplus is generated by the government supports for the sector and amounts to more than all the milk produced in Ontario. DFC organized the news conference to again remind the government and the public about the dairy sector's economic importance.“The government said it would support us,” he said. “Supply management levels out the playing field and keeps prices fair for consumers.”Weins said the dairy sector “has been reduced to a bargaining chip in the NAFTA negotiations.” Demanding Canada allow more U.S. dairy products across the border to fix the U.S. overproduction problem “is not a viable solution.“Canada has a population that is less than the state of California. For American farmers, the Canadian market is a drop in the bucket – for us – it is our livelihood.”DFC wanted “to address the myths and inaccuracies” that keep coming out about the cost of supply management to consumers, he said. “The dairy sector is worth fighting for; it's been a great success story in the last half century.”Dairy is one of the top two agricultural sectors in 7 of 10 Canadian provinces. The sector employs over 220,000 Canadians, contributes more than $19 billion to Canada's GDP annually and $3.8 billion in local, provincial and federal taxes.“Canadians today have access to Canadian milk that is produced to the highest standards for quality, animal care, and the environment in North America. This is done all while ensuring Canadian retail prices for milk are in line with other countries – in fact, more affordable than many”,  Lampron said.Canada's system of supply management ensures the Canadian supply of milk matches domestic demand, and allows farmers to receive a fair price that covers their costs of production – without the need for any direct taxpayer production subsidies like those granted to farmers in the U.S.The Dairy Processors Association of Canada (DPAC) added its voice to the DFC's call. “We remain steadfast in our belief that any outcome of a final NAFTA deal must contribute to the economic growth of both dairy farmers and processors,” said Mathieu Frigon, President and CEO. “The dairy sector, the hard-working Canadians it employs, and billions of dollars in investments made by its farmers and processors, are worth fighting for.”It is estimated that dairy processors have invested over $7.5 billion in capital assets and research and development to strengthen and grow Canada's domestic dairy market over the last decade, he said. The large majority of those investments have taken place in just the last four years.However, market access commitments made by the Canadian government via previous free trade agreements will decrease production and greatly affect the dairy processing industry's ability to see returns on past investments. In fact, trade deals with Europe and the transpacific countries will result in $1.5 billion in lost returns on investments for dairy processors over the course of their implementation.Alex Binkley is a freelance journalist and writes for domestic and international publications about agriculture, food and transportation issues. He's also the author of two science fiction novels with more in the works.