The Canadian dairy industry has long been governed by a supply management system, which officials in Newfoundland and Labrador affirm will remain unchanged despite pressure from the United States. This system, regulating dairy, poultry, and eggs, controls production, imports, and pricing to ensure stability.
Tom Osborne, the general manager of Dairy Farmers of Newfoundland and Labrador, emphasized the system’s significance in protecting the industry, food security, and dairy farmers. Maintaining a stable price by preventing product oversupply is crucial for all stakeholders in Canada, including consumers, farmers, and processing industries.
The U.S. has continually criticized Canada’s dairy management practices, with recent threats of imposing tariffs on Canadian goods. President Donald Trump’s nominee for commerce secretary, Howard Lutnick, expressed intentions to target Canada’s dairy industry, citing unfair treatment of U.S. dairy farmers. However, Osborne refuted these claims, highlighting the trade imbalance in favor of the United States in dairy product exports to Canada.
The three pillars of Canada’s supply management system, as explained by Jodey Nurse from McGill University, include production discipline through quotas, import control, and fair farm pricing. This system ensures farmers receive fair compensation, promoting reinvestment in farms and communities. Compared to the U.S., Canadian farms, benefiting from fair pricing, tend to be smaller and more resilient to market fluctuations.
Despite looming U.S. tariffs, Osborne remains optimistic about government support for the dairy industry and the supply management system. The recent 30-day reprieve granted by Trump has eased tensions, but discussions on tariffs and industry strengthening continue. International Trade Minister Mary Ng reaffirmed Canada’s commitment to protecting the supply management system.
Support for local Canadian products is crucial amid tariff threats, with Osborne emphasizing the high standards of the Canadian dairy industry. Encouraging consumers to choose Canadian-made dairy products, known for their quality and absence of artificial growth hormones, can benefit both consumers and the industry.
In conclusion, the Canadian dairy industry remains steadfast in its reliance on the supply management system to ensure stability, fair pricing, and continued protection for dairy farmers and consumers alike.