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Lyle in Washington

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    #11
    Brihau - the Europeans haven't gone hungry for a long time - several decades in fact, so that argument simply doesn't wash anymore. Granted, they have had more than their fare share of food scares, but they aren't going hungry. They need to quit producing at 135% and oversupplying.

    As far as the dairy goes, cowman, if it were just a little bit that extra that they were getting, one could possibly live with it, but it's more than just a little bit. There is a paper written by Owen Lippert of the Fraser Institute that is entitled "Milk - the Perfect Food - the Perfect Mess". In it he talks about the fact that of the $4 billion in "subsidy" money paid out, 97% of that went to the dairy industry. Now, does that sound like it's just a little bit to you? Yes, they do work very hard and most of us do not want that kind of life, but it is a choice that they make to do it, so like the rest of us, they have to deal with the consequences of their choice and if that means that they are up at 4:00 a.m. milking, then so be it. It's no different than you being out at 1:30 in the morning when it's -30 and snowing and you're checking for calves. Not a fun part of the job, but it's part of it nonetheless.

    In some ways I find it a little hard to compare the tractor industry with that of the food industry. Yes, when the demand for tractors goes down, they close plants, lay off people etc. but maintain the price of the tractors. We can live without them, but food we cannot live without. Some of us may be able to go a little longer than some, but we still all need to eat.

    My concern with the dairy industry is that they want to keep supply management firmly in place, but now they want to get into the export game. You can't have it both ways. You're either in or you're out.

    The other problems with the supply managed sectors is that there is no need to be innovative, it creates artificial barriers to entry because who can afford to capitalize $9 million just to get started, the only ones who are actually doing quite well at dairying are those who got in when quota was free - as you've pointed out everything isn't entirely rosy in the dairy industry - the small family farm that supply management was supposed to save is slowly disappering as well because the big guys are the only ones who can afford to keep buying up quota.

    There are those who believe that when push comes to shove at WTO talks, that in order to get something we want, Canada will put supply management on the line. How true that is and when it will occur is anyone's guess.

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      #12
      Linda: The problem with pulling all the subsidies for the dairy man is that without them he can't compete with the heavily subsidized American dairy industry. Sort of like the same thing that is happening with our grain. We know the government should step in and match the Americans and Europeans on grain; that is if they want an export grain business. If they don't want a dairy business...it's simple scrap the subsidies. And please do not forget, who benefits from the dairy subsidies the most?? The big food corporations!
      You are very correct when you say the $9 million quota was free or bought at low prices. Still it is real property and if the government decides to cave in on supply management they had better have their checkbooks handy!
      Why do you think dairy farmers have so much clout? It is because they were the only farmers with enough guts to "bell the cat" when they occupied the house of commons and fought with the police in 1967!
      I wonder how the writer you referred to describes "subsidy"? You state he said $4 billion of which 97% goes to dairy. That only leaves $120 million for the rest of us! I know Alberta spent a lot more than that just on drought payments last year. And probably a lot more on crop insurance. Even our farm fuel rebate for one province is that much at least.
      The dairy industry in Canada is not some backwater of production. Our dairy farmers are very modern and quick to adopt technology. We also have some of the most superior genetics in the world.
      And the final argument: If it is such a rosy picture, we should all go out and start milking cows. With the unlimited wealth from subsidies I'm sure the bankers would just be falling all over themselves to give us money.

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        #13
        It's not that the Americans are subsidized so much as they play with the world price and New Zealand is the low cost producer there. That is where the competition comes in and is why the U.S. and New Zealand have banded together in terms of their dispute with what they feel are Canadian subsidies.

        If we were to loose the supply managed dairy industry, the income for our dairy farmers would drop by some 60% overnight. These were figures that the USDA showed us when we were in Washington last year.

        Part of the problem cowman is that the dairy industry are not told these are subsidies - they are something else.

        For me it's simple, if they want to have their quota system and keep foreign imports out, then they can't be in the export game themselves. They need the quota system in order to be able to stay alive in Canada. When it comes to fluid milk, the US could produce what we use in one year in a matter of weeks. Same with chicken and eggs. We won't ever see the demise of the quota system - at least not without a huge fight - because 48% of it is concentrated in Quebec and our own minister has vowed to keep it in place. I guess one way to look at it is that one sector keeps doing okay and the rest struggle. What would happen if the government vowed to keep the other sectors going?

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          #14
          Carebear: What does dairy have to do with Vanclief's farming background? He wasn't a dairy farmer.

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            #15
            Cakadu: The US dairy industry is in a strange place right now. If it weren't for a lot of Canadian heifers moving south of the border, they would be in a position of constantly decreasing production every year. A lot of the big herds in the midwest and southwest just buy bred heifers, calve them out, put them right on BST and milk them 1000 days then ship them to McDonalds. Never even consider rebreeding, just buy more Canadian heifers. We sold 10 off our farm today.
            I've seen a couple of studies looking at opening up the milk trade between Canada and US from US researchers that concluded that milk would move north to the prairies, south from Ontario and Quebec, and BC and the maritimes would stay about even with where they are now.

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              #16
              Dalek, that research you've quoted wouldn't surprise me, given the concentration in those 2 provinces. If that's the way they're treating their animals, then more's the pity as it sounds as though they're not dealing with them too well.

              After having read your two accounts of the trip down there, I wonder what the point of it all was. All the government people down in the US can smile and nod, wring their hands a little and then go on about what it was they were going to do anyway. How much do they care what their practices do to us or to anyone else?

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                #17
                It's good to see a couple of new people to the discussion. Welcome aboard and don't be shy about sharing your comments/opinions/thoughts.

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                  #18
                  I am sorry I sincerely thought that our illustrious agriculture minister had been a dairy farmer. I stand corrected, it is my first time on here and screwed up already.

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                    #19
                    No prob Carebear
                    Actually I think when he came back from college in the early 60s his father may still have been milking but only for a few years, then they focused on hogs and crops. At the end they were pretty big in farrow to finish, grains, PYO strawberries (maybe raspberries too) and I think some vegetables for the cannery when it was still open, peas and maybe sweet corn or tomatoes. I remember I was about 11 when I went to his sale, it was late March or early April of 86 and cold and snowy. That was also the first place I ever saw a Versatile.
                    Drove past Vanclief's house and (now his son's) farm on Wednesday.

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                      #20
                      Cakadu I think most of what this government does regarding agriculture at this point is aimed at convincing urban voters they're doing everything they can.

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