Minnesota dairy farms affected by US-Canada trade dispute

Minnesota dairy farms affected by US-Canada trade dispute

During his visit to Kenosha President Donald Trump spoke briefly about a big problem for some Wisconsin dairy farmers: the fact they can't find buyers for their milk as demand shifts in Canada. Dairy farmers in the US complain it's a new tariff that closes the Canadian market to them. The pricing agreement was a response to growing US exports of milk proteins to Canada that missed Canada's high tariffs. The affected farmers lost contracts with US dairy processors that export to Canada.

Ben Brancel, Wisconsin's Secretary of Agriculture, Trade and Consumer Protection.

"This is a heart-wrenching situation". Critics say it's time to revisit the rules and consider scrapping supply management altogether, as Australia and New Zealand have done.

"We produce as much milk as the marketplace requires". "Simply put, in the U.S, and around the world, too much milk is being produced".

Those exports increased from US$33m (£25m) in 2011 to US$98m (£76m) in 2016.

Taking away even part of that market can affect the rest.

All that said, what Trump is radiating in terms of tone if not detail should worry us. "Every state is impacted by it". That means that Canada can negotiate something in return, whether it is market access for steel pipes or lumber, or exemptions from border taxes. Each day Costello said kids ask each other if anyone has found a plant to take their milk. "Now that it's only 10, 11 days away, I guess it's starting to hit home harder". "You can not penetrate the American market and have a fair price for producers".

But the battle will not be easy.

University of Toronto political scientist Grace Skogstad says that while the Canadian dairy sector is "vulnerable" to external trade pressures, it has weathered disputes before, including under the North American Free Trade Agreement. They've been selling it to a processor who then sold it in Canada.

Steel is expected to play a key role in any joint infrastructure projects between Canada and the US, something Trump and Prime Minister Justin Trudeau pledged to co-operate on during their White House meeting in February.

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However, Canada continues to defend the system.

According to Novakovic, the back and forth of protectionist policies between the two nations has continued for decades.

Canada's ambassador says that Canada is being unfairly maligned. He cited his anti-NAFTA vote and Trump's pledges to reopen the trade agreement.

However, U.S. milk producers and processors are hopeful.

Dairy farmers in New Brunswick and the rest of the country are rejecting U.S. President Donald Trump's claims the Canadian dairy industry is to blame for setbacks experienced by dairy farmers south of the border, particularly in NY and Wisconsin.

"In the last two decades, the stewardship efforts of farmers and veterinarians is demonstrated by the continuing decline in traces of antibiotic residues in milk leaving the farm", said NMPF President and CEO Jim Mulhern.

Bernier encouraged Trump to continue to push the Canadian government to open its agricultural markets.

"The truth is, both the USA and world dairy markets are now over-saturated, which has led to low prices at the farm-gate and a lower price received by the processors", said Isabelle Bouchard, director of communications and government relations at Dairy Farmers of Canada, in a blog post.

"Time and again, Canada has demonstrated its disregard of its dairy commitments to the United States - hampering America's exports to Canada - while pursuing ways to use its government-controlled system to unfairly dump greater Canadian exports in global markets", BNN reported.

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