U.S. dairy farmers appeal to Trump as Canada curbs imports

CHICAGO/WINNIPEG • The U.S. dairy industry is appealing to President Donald Trump for help after Canadian companies halted some imports, exacerbating a glut of milk on the American side of the border and forcing one of the country’s biggest butter producers to scrap supply contracts with farmers.

Some U.S. dairy companies say that in the past week, they’ve lost all their Canadian sales of ultrafiltered milk, a concentrated ingredient used to boost protein content in cheese and yogurt. That’s due to a new policy rolled out in recent weeks that incentivizes Canadian processors to buy domestic supplies.

The Canadian move violates trade commitments between the two nations, according to organizations including the U.S. Dairy Export Council and National Milk Producers Federation. The groups urged the Trump administration to take action.

The lobbying from the dairy sector comes at a sensitive time for trade relations. Trump has pledged to renegotiate the North American Free Trade Agreement to help U.S. industry.

Grassland Dairy Products Inc. in Greenwood, Wisc., said it has lost Canadian business valued at up to US$100 million annually in the past week, and notified dozens of farmers that it can’t take milk deliveries beyond the end of April. Cayuga Milk Ingredients in Auburn, N.Y., said it lost all of its Canadian exports, a source of about 30 per cent of overall sales. “I kind of do hope that people renegotiating NAFTA use this to their advantage to get something back for America,” Cayuga chief executive officer Kevin Ellis said.

Canada’s new pricing mechanism, the Class 7 program, was introduced in February, said Isabelle Bouchard,