As with all commodities, global prices fluctuate. There has been a recent slowdown, due to a number of factors, including a Russian ban on dairy imports from various countries and the discontinuation of milk supply quotas in the European Union in 2015. But dairy exports are already rising again. Australia’s exports are up 14 per cent from last year. U.S. exports increased fourfold in only a decade. But Canada prefers to hide behind our borders, losing out on tremendous opportunities abroad for Canadian dairy. Globally, people with middle-incomes – who want and can afford more and better food – will number almost 5 billion by 2030. In 2016, it was projected that 223 billion litres of milk alone was consumed.3 Canada represented only a fraction of that – in the 2017-2018 production year, only 1.6 billion litres of milk was sold.4 Canada is a trading nation. All of our other sectors compete and succeed selling to international markets – why not dairy? Some of the younger farmers want to grow beyond our own small market, but are intimidated into not speaking out. We make good milk; a world of opportunity, and its profits, is going to others.
We should dismantle supply management – not because Trump says so, but because it’s in Canada’s best interests. But now would be a good time because of the challenges and loss of negotiating leverage this creates for our other economic sectors in a time of trade upheaval.
The Canada West Foundation has proposed a transition plan: Supply Management: A win-win opportunity for reform. Liberalization can be a big win for Canada – ironically, for the dairy sector too.
Fair compensation will be needed, for sure. Financial transition assistance as well, of course – our report covers all of that in detail. Ensuring a level playing field with the U.S. dairy producers – absolutely. But for the sake of the rest of Canada’s economy, now is the time to finally do what’s right.