A sledgehammer to the Cdn dairy industry

[Integrity_Farmer]

While Trudeau and Freeland and Bay Street were popping the Campaign bottles after signing away a huge chunk of the dairy industry under the CETA agreement Here is what is actually happening.

CETA and the Federal Government's response.
When CETA comes into effect, an extra 17.700 metric tonnes of cheese, produced in Europe, will come into the Canadian marketplace. That is replacing the milk production of what 400 modest size Canadian dairy farms produce or 2.5% of the national pool. In order to maintain production at the same level as before CETA takes effect, a farmer has to purchase quota and hope some of her/his fellow producers will quit in order to make that quota available. This investment will not generate any return, it will only help maintain the revenue from before the cut back.

In Canada we have milk free of Hormones and antibiotics and as a consumer I am not outraged when I can purchase milk for less than a liter of Coke or Pepsi.
The trade deals are nothing more than a corporate power grab from farmers and the citizens of Canada

I

[blackpowder]

I'm honestly torn as well.
Dad was given quota back in the day. Just never improved upon it and sold out in 96.
We cant turn clock back and we cant compete. Shitty mess. Utopias dont exist. Yoo-rupian or You-all for dairy. Take your pick.

[Horse]

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 ?

[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.