Canada Takes Step To Curtail U.S. Imports With New Dairy Program

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The Canadian dairy industry, in an ongoing fight against what it sees as a glut of U.S. imports of ultrafiltered milk, has instituted a temporary program that allows Canadian cheese manufacturers to buy domestic ingredients at world market prices, as opposed to the usually higher price controlled by its national supply management system.

[Inside U.S. Trade| June 2, 2016 | Inside U.S. Trade]

The Canadian dairy industry, in an ongoing fight against what it sees as a glut of U.S. imports of ultrafiltered milk, has instituted a temporary program that allows Canadian cheese manufacturers to buy domestic ingredients at world market prices, as opposed to the usually higher price controlled by its national supply management system.

The temporary measure, introduced by Canada's Milk Supply Management Committee (CMSMC), will be in effect from May 1 through July 31 and modifies one of Canada's existing milk classes.

The interim program aims to encourage the use of Canadian dairy ingredients by establishing competitive prices with imports from the U.S. and with prices in Ontario, which adjusted its prices to the world market through a provincial initiative introduced on April 1, according to Canadian industry sources. At the same time, Canadian dairy stakeholders are pushing for a national long-term solution to letting Canadian ingredients successfully compete with U.S. imports.

The Dairy Farmers of Canada (DFC) applauded the move and “would like to see other major processors follow their lead,” DFC President Wally Smith told Inside U.S. Trade on May 26.

The U.S. dairy industry has politically linked market access for U.S. ultrafiltered milk in Canada to its support for the Trans-Pacific Partnership. It has urged in letters to the Obama administration and Congress that Canada live up to its existing market access and comply with its obligations under TPP, if the country decides to ratify the deal.

To read more go to Insidetrade.com

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