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Dairy groups around the world urge change in Canadian policy

Three U.S. dairy groups have been joined by seven international dairy organizations as they challenge Canada’s new Class 7 milk pricing policy.  The 10 groups sent a letter asking their country’s trade officials to use all options, including World Trade Organization action to end the Canadian practices.

The International Dairy Foods Association, the National Milk Producers Federation, and the U.S. Dairy Export Council have been saying Canada’s new policies allow them to dump cheap powdered products on the world market.  Dairy groups from Argentina, Australia, the European Union, Mexico and New Zealand agree.

So far this year, the coalition says Canada’s incentives to produce cheaper milk for ingredients has not only displaced U.S. milk exports but has also led to a 273% increase of Canadian skim milk powder exports in the first four months of 2017 compared to a year ago.  That’s almost 12-thousand tons of skim milk powder.

The letter to trade representatives was signed by the U.S. dairy leaders, and the CEOs of the European Association of Dairy Trade (Eucolait), European Whey Products Association (EWPA), European Dairy Association (EDA), Dairy Companies Association of New Zealand (DCANZ), Camara Nacional De Industriales de la Leche (CANILEC), the Centro De La Industria Lechera (CIL), and the Australian Dairy Industry Council (ADIC).

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