Trade war. Sounds scary. And it is. As a Canadian dairy farmer, my farm and family is directly in the crosshairs in this fight. That cold sick feeling in the pit of our stomachs has returned yet again as we wait to hear what the future holds for us. Will we survive this latest attack on our livelihood? Will scenes like this soon only be a memory in rural Canada?
President Trump’s latest tirade against our country’s dairy supply management system and his demands to dismantle said system are frankly quite frightening. But what is most frustrating is the lack of background or real facts in his claims of unfair trade practices in dairy between the US in Canada.
Supply management means that our Canadian dairy farms produce enough milk for Canadian consumers. In order to keep this balance between demand and supply, our government has trade barriers in place in the form of tariffs on dairy imports. Foreign countries are able to import milk to Canada, but they will be charged a high tariff (up to 300%). This cost is often prohibitive to imports and so Canadian processors usually rely on domestic dairy supply. But… Canada does allow some tariff free imports – about 10%. This percentage has been increasing in recent years; CETA and the new TPP have whittled away a sizeable chunk of our dairy market. But get this: this 10% is more than double the amount that the USA allows. Say what??? Yes, you read that correctly. The US caps tariff free imports at about 2.75%. So, the US ALSO protects their dairy industry. Ironic, huh? Yet, President Trump has attacked our system. You see, American dairy farmers are in dire straits. They produce much much more milk than is needed in the States and export a rather significant percentage to other countries, Canada included. The global dairy market is saturated, there’s simply too much milk. This has driven the price paid to American farmers below the cost of production, pushing many farms out of business. It’s understandable then that Trump would look for ways to alleviate these problems. But expecting entirely free dairy trade with Canada to fix this problem is ludicrous. With a population 1/10th the size of the States’, our market is too small to make a very significant dent in their current surplus. Wisconsin alone produces more milk than all Canadian farms combined. The US needs to manage their own issues with over supply rather than expecting us to fix their problems. Our own farmers do a fine job of supplying our citizens with dairy products, thank you very much.
And if the border were opened, what would be the cost? Our current system ensures a fair price paid to farmers that covers the cost of production. American dairy farms are already producing milk at a loss, and Canadian farms would soon follow suit. Small farms unable to compete with the economies of scale present on mega dairies with tens of thousands of cows would be the first to go. Farms like ours. Family farms. Our rural fabric would be forever changed. Is that what Canadians want?
If you want the dairy products you enjoy to be produced on Canadian farms, under the strictest animal welfare, milk quality and food safety standards in the world, it’s time to speak up. Let your elected officials know that your Canadian dairy products and dairy farmers are important to you. Reach out to your MP. Send an email to the Prime Minister’s office. Do anything you can to encourage our government to stand firm, to not give in to Trump’s bullying tactics. If they don’t, this photo may one day be one of the only reminders of the farms that used to dot our countryside. Let’s work together to make sure that doesn’t happen.