Bibeau says the government is still working with the supply-managed sector.Ottawa—Dairy processor groups across the country say the federal government has reneged on its promise to compensate their members for the economic harm that will result from the European and Pacific free trade deals and the new NAFTA when it is ratified.The Dairy Processors Association of Canada (DPAC), the Conseil des Industriels Laitiers du Quebec (CILQ), the Ontario Dairy Council (ODC), and the Western Dairy Council (WDC) said in a joint statement that Agriculture Minister Marie-Claude Bibeau repeatedly and publicly stated the government's commitment to fully and fairly compensate Canadian dairy processors for the economic harm they continue to experience.DPAC President and CEO Mathieu Frigon said, “It is clear now that the government does not intend to honour that commitment. The lack of a compensation package has left Canadian dairy processors with no clear direction when it comes to this government's plan to mitigate the negative impacts of trade agreements.”When asked about the processors' comments, Bibeau's office said, “We continue to work diligently with the other supply managed sectors, and processors, to evaluate the impact on their businesses and to determine the compensation mechanisms that best suit their needs. We continue to have productive discussions and are working closely with the industry representatives, and we remain committed to deliver this compensation as soon as possible.“We recognize the good jobs that dairy, poultry, and egg processors sustain across the country, the safe and high-quality products they supply to Canadians, and the contribution they make to our economy,” she said. “Our government has already invested $100 million in the Dairy Processing Investment Fund to help dairy processors improve productivity and competitiveness, and help them deal with market changes resulting from the European trade agreement.”The compensation was promised last October when the negotiations for the Canada-U.S.-Mexico trade deal was announced. Working groups were established with the dairy and poultry sectors. Earlier this month the minister announced a $1.75 billion compensation plan for dairy farmers that would pay about $345 million in its first year.Frigon said the processors had expected to hear at that time what compensation they would receive from the government. The processors concluded their presentations to the government at the end of April.CILQ President Charles Langlois said dairy farmers and dairy processors were equal partners in the working groups established by the government “but only the farming sector was heard. Everyone understands that a healthy dairy sector requires both thriving farmers and thriving processors.ODC President Christina Lewis said, “Dairy processors are committed to investing in the Canadian dairy sector to generate growth, and they have steadfastly advocated for two key tools to achieve that objective: the allocation of dairy import licenses to dairy processors and financial compensation in the form of investment incentives.WDC President Dan Wong said, “Investment is what the dairy sector clearly needs, and investment-generating government measures are what dairy processors were looking for. We are going to have to work very hard with the next government to get this right when Parliament reconvenes.”The processors said they hope the next government will “correct this inaction and deliver on the promise of full and fair compensation to Canada's dairy processors.” Dairy processing is the second largest food processing industry in Canada, contributing more than $18 billion annually to the national economy. Dairy processors directly employ 24,000 Canadians in over 470 facilities across the country and pay $1.2 billion in wages.