DECEMBER 2018 • COUNTRY LIFE IN BC


5


Ottawa needs to stop milking dairy sector Canada’s supply management system is the cream of the crop


Never before have I spent quite so much time discussing dairy policy in my off time.


In short, Canadian dairy is


Viewpoint by TREVOR HARGREAVES


Everyone from the mailman to the grocery clerk has taken a keen interest in how Canadian dairy farmers are faring amidst newly granted market concessions. They’re eager to discuss it. NAFTA (now Ameri- centrically renamed USMCA) has received plenty of attention in recent months, and rightly so. The US is Canada’s largest trading partner and failure to negotiate a renewed agreement would have had sizeable economic ramifications for our national wellbeing. There’s little argument that we live in a globalized economy with increasingly complex relationships of trade goods. This reality, however,


presents particular challenges for supply-managed sectors. Just how does a 50-year-old economic structure that largely focuses on domestic production fit into the grand scheme of modern global economics? The truth is that in recent years, supply management has become a target. It’s a clear and easy negotiation point for foreign countries seeking access during trade negotiations. This was the case with the Comprehensive Economic Trade Agreement (CETA) with Europe four years back (under which the Harper government conceded 16,700 tons of foreign cheese into Canada). It was the same with the Comprehensive Progressive Trans-Pacific Partnership (CPTPP), when the Trudeau government granted partner countries 3.24% dairy access, and a few months later, the bus pulled back up and dairy was thrown right back under it with 3.9% in market concessions, this time to overbearing US interests. Notably, Canada already


imports five times more dairy products into Canada than it exports, which makes the whole argument for increased US dairy access about as creatively accurate as the majority of Trumpian policy points. In less than four years, 10% of Canada’s dairy market was handed over to foreign interests, and additional constraints have been inked under USMCA that will affect our export abilities to other countries.


hurting. Trudeau knows the federal government has acted rather unfairly, and has sworn to compensate producers. But how do you compensate for permanent market loss? To give you a


sense of how rapid these trade erosions are, the feds have yet to sort out and finalize the details of compensation for CETA and CPTPP. Speak to any dairy producer, and they’ll tell you they don’t want government money. What they want is Ottawa to stop handing away sizeable chunks of an industry built with producer investment and marketing dollars. In the US, a sizeable chunk


of dairy production costs are offset by various subsidy programs under the US Farm Bill. This is why milk and cheese are cheaper down south. If the US were to give away part of the market, they would have more rights as their government has helped build and offset the costs of that market. In Canada, however, handing away chunks of our market is a slap in the face of hardworking Canadian producers who


consistently reinvest in their operations. Prime Minister Trudeau is


fond of stating outwardly that he and his government will defend and support supply management and recognize its importance to Canada’s agricultural economy. Trudeau even went so far as to send a pre-recorded video to the Dairy Farmers of Canada’s national conference this past summer in Quebec, where he asserted strong ongoing support. Yet his government’s actions have been otherwise. Actual support means saying no to market concessions. Defending supply management means preventing market erosion. Perhaps you’re asking


yourself why supply management is worth protecting. From my perspective, the arguments in favour have never been stronger. A simple comparison of Western dairy industries serves as a stark reminder of just how well supply management works. At its core, controlling supply regulates price, preventing disastrous fluctuations. The US is currently experiencing record dairy farm bankruptcy while simultaneously dumping hundreds of


thousands of gallons of milk a year. In New Zealand and Australia, markets are in equal free-fall. The UK market is struggling greatly. In the search for a strong, sustainable dairy market, the shining example is Canada. Our structure genuinely works. Our producers receive a fair return on a high-quality product and the market grows at a sustainable pace. At least it has until recently. On the plus side, Canadians


across the country have never been more interested in buying local and supporting Canadian dairy and other supply managed sectors. Moving forward, it’s vitally


important that the buck stops here. With other trade deals on the horizon with Argentina, Brazil, Paraguay and Uruguay, and a potential bilateral agreement with the UK, the target on Canadian dairy will remain apparent to foreign trade negotiators. It falls to all of us as Canadians to ensure our government stands up and defends our real national interests. A core part of that is supply


management, and a nutritious and delicious part of that is Canadian milk. Trevor Hargreaves is director of producer relations and communications with the BC Dairy Association.


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From everyone at Country Life in BC, may the spirit of the holiday season be yours now & in the new year!


columnists


Bob Collins Margaret Evans Judie Steeves Linda Wegner


contributors Lindsay Bartko Randy Giesbrecht Barbara Johnstone Grimmer Sean Hitrec


Sean McIntyre Daniel Mesec Ronda Payne Jackie Pearase


CATHY GLOVER publisher


Tamara Leigh Myrna Stark Leader Liz Twan Tom Walker


DAVID SCHMIDT editor emeritus


graphics Tina Rezansoff office Betty Lee Longstaff Naomi McGeachy


PETER MITHAM associate editor


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