A sledgehammer to the Cdn dairy industry

[sawfly1]

it is just an industry the global giants do not have their grubby mitts on yet.
and once they do the farmers will get squeezed, then the consumer.

does this mean we will not have the tariffs that protect US tire jobs. in return . kinda doubt it.

it is ok to have tariffs for the US tire industry ,
but it is a crime to have them for our dairies.
what do we get in return ?

while i do think the cdn. system got a little out of control.
when Quota cost turned into a production cost. just not right.

we gave up something in the first place to have dairy in the deal .
what are they giving us.

[grassfarmer]

On the media a politician said the quota is worth 37 billion dollars,. That price is figured into the price of milk. Question then is what would milk be worth without price of quota. I milked for 8 yr about 35 yr ago and they were giving out quota, now quota is more than cows and fixtures, how does the general public gain anything by letting it become so high ?

Absolutely not Horse. If the Supply Management system were to be scrapped tomorrow and the processors and in turn retailers were able to get the raw milk for half what they are paying now do you think they would reduce the milk price in the store by 50%?

[blackpowder]

$2/gallon or less down south grass.

[grassfarmer]

But do you think retailers would seriously give up that much margin when customers are able and willing to pay $5? Sure they might be able to buy in some $2 US crap but they aren't going to retail it for $2 why would they?

[Integrity_Farmer]

New Zealand has a completely deregulated milk marketing system where farmers are increasing the size of their operations and are going bankrupt. NZ exports 95% of their milk production yet the price to consumers for two liters of milk is $3.35 for two litres or approx $3.20 Canadian for two litres. It is disillusion to think that if we ended supply management we would have lower milk prices.
The New Zealand article https://www.pressreader.com/new-zealand/waikato-times/20161221/281749859005026

[blackpowder]

I believe its called competition.

[Integrity_Farmer]

I believe its called competition.

How is that working for you when you fuel up your car or truck?

[GDR]

On the media a politician said the quota is worth 37 billion dollars,. That price is figured into the price of milk. Question then is what would milk be worth without price of quota. I milked for 8 yr about 35 yr ago and they were giving out quota, now quota is more than cows and fixtures, how does the general public gain anything by letting it become so high ?

The price of quota is irrelevant to the consumer. It's just for the right to sell to the milk board, price is determined by willing buyer and seller. It's just been pushed up over the years because of the desire to be a dairy farmer.

From what I understand the board has been increasing quota volume for farmers because demand for cheese yogurt and butter has skyrocketed but fluid milk has actually recessed a bit. Few new dairies in our area milking jerseys again.

I don't support the system in principle but the percentage of the retail of dairy products returned to farmers is quite high. (Believe it's better than half) (If anybody knows numbers please post)
Think about how little of a loaf of bread or steak in the grocery store comes back to us.

US uses BGH too Canada does not, think there would be a competition problem there too or some sort of labeling issue to cause grief with trade.

[Horse]

Absolutely not Horse. If the Supply Management system were to be scrapped tomorrow and the processors and in turn retailers were able to get the raw milk for half what they are paying now do you think they would reduce the milk price in the store by 50%?

In the 70s the gov gave a subsidy to entice people into milking more cows,1980 I sold our mill string of 25 cows. Ask sk3 if he sells for less because he increased acreage to 10,000 for 1000/cow with quota, the milk board was giving quota for nothing,3 yr later another neibor with 30 cows sold for 1700,3 yr after that a 8o cow dairy sold there quota for 2400 bad kept there cows, since then I don't know how prices are.
Now they are saying it will cost the Canadian gov billions if supply management ends. Please explain why its up to the taxpayer to clean up this mess.
No I would not expect them to reduce prices that much anymore than other segments of the economy does, wholesale gas prices 62cents retail 1.08, that is about 40% more than normal,NO everyone is shafting everyone they can.

[blackpowder]

IFarm. What is the tax difference between fuel here to down south? Big oil said "ya Canuck govt stupid so we'll hose em" but not the US. IF must stand for inferiority complex.


Like I said. I am torn on this one. A farm sector with a guarenteed margin paid for by consumer is great but is it really sustainable. Smaller guys here getting out of dairy too.
Is milk the last protected un different commodity? I've got no skin in this one. My principles cant be different for milk and wheat.
If central control was best we'd all drive Ladas and Belarus.

[chuckChuck]

Getting rid of supply management and the protection from imports will guarantee most of the farms and industry will be gone with a flood of cheaper imports. This will include alot of the jobs and spin off benefits. If Trump is in favour of protecting american jobs and industries why can't Canada?

There should be nothing wrong with protecting and promoting domestic production and consumption of basic food items. Americans subsidize their dairy farmers and other farms with relatively rich subsidies compared to Canada. Are we asking them to stop subsidizing their farmers? We don't have to give everything away in this country do we? And we are likely get **** all in return.

[macdon02]

Why doesn't the fact CAD is at .74 ever get addressed when talking about US subsidies? Our weaker currency is a subsidy on exports to the tune of 25% how many dollars in govt programs would it take cover that?

[sumdumguy]

The taxpayer is going to pay for all the inflated quota and the industry will be gone. Its a lot cheaper raising cattle where temperatures are more temperate. Maybe settling the Great White North was never meant to be, we are living with the consequences. 😎

[Braveheart]

The question, if it goes, is, will it improve Canada's trade position? For all these years we've been talking out of both sides of our mouth. We wanted unfettered access to other countries markets but yet maintained this barrier on dairy, chicken, etc into Canada. Can we be strong enough on anti dumping rules as well?

[chuckChuck]

Many countries if not most of our trading partners have some protectionist measures in some form. I don't think smaller countries have the same bargaining power when it comes to the scale of their industries. We often give up a lot for little gain. According to JT The US has a $400 million dollar trade surplus for dairy with Canada. So who is actually gaining from the from the current arrangement. Is not the 300 million consumer market in the US not enough for them to have a good dairy industry?