World milk prices now effecting Canadian markets

In 2008 Canadian genetic exports hit $177.8 million.

The recent crash in world milk price has had a detrimental impact on international dairy farmers, but for the most part Canadian farmers have remained profitable during this crisis.  Thanks to supply management Canadian farmers are guaranteed a return on their milk, however supply management has no control over the recent trend of depleting genetic sales overseas.  Finally the Canadian dairy industry has seen some compensation from the federal government in terms of a grant of $1.22 million.  This funding is specifically for promoting international genetic sales to Europe, China and Southeast Asia by means of advertising Canadian cattle and semen to once again boost sales.  Personally I am happy to see some government aid in agriculture.  While I know that the Canadian Dairy industry typically is one of the few agricultural practices that continues to be profitable, I am happy to see the government funneling some money into agriculture.  Here’s hoping that  government money distribution does not end in the dairy sector and we will see some subsidies in cash cropping and other livestock industries.

For more information on the dairy industry’s government funding, visit this weeks Better Farming  article briefly covering the topic.

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4 thoughts on “World milk prices now effecting Canadian markets

  1. R. Kelderman says:

    While producers here in Canada can enjoy a level of stability that other countries envy, we cannot sit idle can expect this system to sustain itself. A new program being implemented by DFO will instill even more consumer confidence and more importantly set our industry apart from dairy industries in other countries. The Canadian Quality Milk Program will give producers here an advantage in marketing our products and keeping the border closed to dairy products from other countries. The dairy industry here needs to educate the public on the quality and safety of Canadian dairy products.
    Supply management in this country has proven itself and we need to continue to upgrade our system. While Canadian dairy farmers contribute to the Canadian economy without government support, we watch as opponents bash the concept. In Europe the cost of dairy support for the European taxpayer rose 64 per cent between 2005 and 2007. In 2006 the average European dairy farm received 41 per cent of it’s income from subsides…. that’s taxpayer dollars! The European Commission has invested almost $477 million to support the dairy industry.
    Let’s continue to support our dairy industry and educate the consumer on the great products, prices, and safety that we have in this wonderful country.

    • Great comment (Dad), I totally agree with everything that you outlined! Those figures on European dairy farmer incomes are quite shocking…it makes Canadian farmers appreciate the supply management system that is still intact here for producers. Supply management has become quite the controversial issue with todays government and as dairy producers we must continue to support and educate our consumers with Canadian dairy products, exactly as you said!

      • Owen says:

        Mr. Kelderman, do you believe Canadians think domestic dairy products are not safe and wholesome? I’ve always thought the Canadian dairy sector did a good job of maintaining a pristine image, so I’m a bit surprised to see you say the sector needs to educate the public on Canadian dairy safety and quality.

        I was at a major food and farming event in Germany recently, and heard new, positive perspectives from the leading farm group there about Canada’s dairy system. It’s hard to bash a system in one of the few countries that hasn’t been devastated by an unstable dairy sector.

  2. R. Kelderman says:

    Domestic dairy products are safe and wholesome? I’m glad to hear that the Canadian dairy sector image has, is, and will continue to be held in such high regard. Pre 1965 and the formation of the Ontario Milk Marketing Board, not only would the price of milk fluctuate with market surpluses and shortages, but also the quality control that we have today. Today’s dairy farms must meet a quality assurance program encompassing Grade A farm and raw milk quality standards. These standards seem to be continually upgraded with safeguards to protect the raw milk that gets shipped to the processor. While I’m in total agreement that we have maintained a pristine image, the job does not end there. Producers need to embrace the Quality Milk Program and realize that not only does it benefit all of us but also sends a positive message to the consumer. In this age of global trade we often hear of disease outbreaks and worry over food safety. In the UK the government estimated six million animals were culled during the 2001 foot and mouth disease outbreak. Farmers and the food chain sector totaled losses of more than $6 billion Cdn and taxpayers footed compensation of over $4 billion. Today the government continues to update contingency plans to contain any future outbreak.
    Our dairy farms must also plan ahead and realize that we cannot shut ourselves off from the outside world. Our largest trading partner to the south would love to increase it’s dairy shipments into Canada. Staying one set ahead will not only give producers here more profitable farms, it will also give us the competitive edge we need to show to the world that our Canadian dairy products are second to none.

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