The dairy farmers’ view

Re: A moment to stop milking us; Terence Corcoran, March 23 Terence Corcoran writes about supply management as if is it was still the 1970s. It is not. Supply management regulates farm price, and not the price of milk in grocery stores, which retailers set, like for all products.

The retail price for milk in Australia and New Zealand — two of the examples of deregulation mentioned — was higher throughout 2017 than it was in Canada. Nielsen numbers showed that consumers paid an average of $1.50/litre of fresh milk in Canada, compared to $ 1.57 in Australia, and $ 1.83 in New Zealand over that period.

When the United Kingdom and Australia deregulated their dairy industries, farm prices went down but retail prices went up. Australian prices for milk in capital cities rose 27 cents per litre in the three years after deregulation, and Australia’s own numbers show lower production and exports than before deregulation.

Moreover, $22.2 billion in government subsidies were available to U. S. dairy producers in 2015 alone. This comes straight out of the pockets of consumers, who end up paying twice for their milk, once through taxes and again at the cash register.

Canadian dairy farmers derive their revenues directly from the market, and receive no direct government subsidies for milk production. Pierre Lampron, president, Dairy Farmers of Canada, Ottawa