Atlantic dairy board managers in agreement on compensation

by Dan Woolley

The general managers of the four Atlantic Canadian provincial dairy producer boards echo one another on federal aid for trade agreement concessions Ottawa made to increase foreign access to the Canadian dairy market.

Ottawa recently announced $1.75 billion in compensation to Canadian dairy farmers over eight years. The compensation is for concessions the federal government made in opening up the domestic dairy market to increased imports following ratification of the Canada-European Union Comprehensive Economic and Trade Agreement (CETA) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

“The $1.75 billion made available would be in addition to the $250 million investment program that already benefits more than 3,300 dairy producers across the country,” stated a federal government news release. “This amounts to a total of $2 billion in federal support to dairy producers.”

Asked how significant the compensation offered to dairy farmers is, Dairy Farmers of Nova Scotia general manager Brian Cameron replied, “Agriculture and Agri-Food Canada has only given details for year one of the eight-year window for the $1.75 billion. Before the end of 2020, the federal government will be making direct payments to farmers totaling $345 million based on each farm’s quota share.”

Asked how dairy farmers are reacting to the compensation, Cameron said, “I believe all farmers would rather milk more cows to fill the Canadian market versus being compensated for negotiated imports filling that market space.”

Asked how much total compensation farmers will receive once the Canada-United States-Mexico Agreement (CUSMA) is ratified, Cameron noted, “Compensation for CUSMA has not been discussed or determined because it is still not ratified. It may be into 2020 before that happens.”  

Prime Minister Justin Trudeau has committed his government to making no more concessions on the domestic dairy market in any future trade agreements. Asked how much reliance dairy farmers should place on his commitment, Cameron said, “We will hold the government to this commitment. They also said they would provide full and fair compensation to dairy farmers. Dairy processors and other supply managed farms impacted by trade deals have not yet had compensation announced.”

Doug Thompson, general manager of the Dairy Farmers of P.E.I., echoed Cameron’s responses. “My answers would reflect Brian’s answers,” he said. “I think the responses would be similar in all of our provinces.”

Steve Michaud, general manager of the Dairy Farmers of New Brunswick, agreed, saying Cameron’s responses “mirror what I would have responded.”

Finally, John Moores, general manager of the Dairy Farmers of Newfoundland and Labrador, said that he “endorses” Cameron’s views.