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More trouble brewing with Canadian dairy policy

The communications director for AMPI (Associated Milk Producers, Incorporated) says more changes to Canadian dairy policy will likely impact producers from across the U.S. and beyond.

Sarah Schmidt recently told farm broadcasters assembled in Washington D.C. the situation with ultra-filtered milk that affected around 75 dairy farms–mostly in the Upper Midwest—could be the tip of the iceberg.

“In Canada, alongside the ultra-filtered  milk, they’ve also instigated a new class for the skim milk powder products.  So as butter-fat demand has increased, they have increased the quota for their dairy farmers to make more milk.  So milk production in Canada has grown.”

She says Canada plans to use that supply to meet domestic needs.

Consequently, taking cream out of that milk leaves the Canadians with what Schmidt calls an amazing amount of skim powder.

“And in their new class, Class 7, they are bringing that powder to the world market at below world market prices.  In other words, they are planning on dumping that powder.  And that is going to impact the whole dairy industry.”

Last week, the National Milk Producers Federation, International Dairy Foods Association, U.S. Dairy Export Council, and the National Association of State Departments of Ag brought trade concerns about Canada to several members of Congress, including House Speaker Paul Ryan.