Supply Management IV: will new NAFTA be our nemesis? 

Some of you have been asking for our thoughts on the latest news coming out of the NAFTA negotiations. And honestly? I’ve been too disheartened to even write about it. We’re scared. Scared about our futures, scared about our children’s futures. As relatively new additions to the dairy industry – we’ve been dairying for less than 15 years, only 6.5 years on our own – we carry a massive debt load. That’s all fine and dandy under the stability of our supply management system, and it should be paid off before our children would potentially take over the reins of the family farm. However, should that stability vanish, as the latest US demands for the abolishment of our entire system would entail, our farm would very possibly cease to exist. 

And why? Our system ensures a stable, fair price for farmers. It also has meant that consumers – and we’re consumers too! – have paid a competitive, fair price for dairy products in the grocery stores. It has allowed Canadian farmers to develop a top notch program that ensures that our dairy farms are held to the highest milk quality, food safety, and animal welfare standards in the world. Our system has helped hundreds of young and not-so-young dairymen and women get a leg up into the industry through various provincial new entrant programs. There are so many benefits to our system! Is it perfect? No! But it’s always changing and adapting to new situations. And quite frankly, it’s the best system out there. Around the world, dairy farmers are struggling to make ends meet. In New Zealand, Australia, the UK, Europe, and the USA dairy farmers are exiting the industry in droves, no longer able to keep their farms afloat after sustained low global milk prices. 

So why attack our industry? It doesn’t make sense to me. The world is awash in a glut of milk. Farmers around the world have been producing more and more milk, all just trying to make ends meet. But now there’s a huge over-supply. Canada’s market look mighty attractive; a good place to dump that excess. But that won’t solve the problem! With only 30 million consumers, 10x LESS than the US, our market would quickly be saturated with this foreign milk, and the problem would still be there. Except now, our small Canadian family farms would be forced out of business, unable to compete with the glut of milk pouring over the border at abnormally low prices. Our complete rural fabric would be torn apart. It’s not just the farmers who would suffer; it would be the feed companies, the veterinarians, the dairy supply companies. In short, it would mean large scale devastation of many rural communities. Instead, these governments eyeing up and demanding the end of our system should fix their problems at home. Manage your supply. There’s no need to over-produce; it’s just plain wasteful and it’s detrimental to the global dairy industry. When supply and demand are balanced, we all win: farmers, consumers, governments, and national economies. 

We’ll be watching the next NAFTA negotiation rounds with bated breath. We are most definitely thankful that so far our government has been vocal about their determination to protect supply management, and we hope and pray that these words will be reflected in their actions at the negotiating table. To our supporters: thank you. Thank you for your moral support. And thank you for continuing to support your local dairy farms with your purchasing habits. We wouldn’t be farming and living this dairy life, caring for our cows with dedication without you behind us! 

For now, we continue on. Our kids still follow us around the barns, helping out when they so wish, learning to do by doing. Will this knowledge and these skills ever be put to use one day? Will they ever follow their dreams to be just like mom and dad? I don’t know. Time will tell. 

2 thoughts on “Supply Management IV: will new NAFTA be our nemesis? 

  1. aimedattheheart says:

    My parents started from scratch about 25 years ago and we are in the same boat. It is amazing how little people know about how farmgate price is set yet they often have stromg opinions. I’ve take many people on farm tours and explained the basics of SM and they all end up agreeing it is a good system. Education changes many minds.

    Liked by 1 person

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