Dairy farmers have global disadvantage

Re: Dairy can grow without monopoly, Don Cayo column, March 6

Don Cayo’s column suggested Canadian dairy farmers take advantage of expanding world markets. But we farm in a northern climate, where cattle must be housed in climatecontrolled barns and fed stored feeds for much of the year. In New Zealand, dairy producers can keep dairy cattle outside 12 months of the year and don’t need to store feed.

The column cites a report on milk marketing by the Conference Board of Canada, critical of our supply- management system. Membership of the Conference Board includes some of Canada’s largest milk processors and retailers who would benefit from a deregulated industry. However, deregulation would not benefit the consumer. Australia, for example, scrapped its quota system driving the producer’s price below cost, but the Australian consumer is paying the same price for the same product.

In the 33 years I have been in the dairy business, there have been many schemes in the United States to subsidize, promote, and then downsize dairy exports. These include culling entire herds of healthy cows to control production when international milk prices collapse. These exports are also often subsidized by cheap, and often illegal, labour on American farms.

In Canada, we don’t rely on subsidies. Farmers are paid based on a cost of production that does not include quota. Because of our supply- management system, there is no waste, no shortages, no flooding the international market with milk powder when export markets change, or calling it aid when it is really dumping. TONY DEGROOT Fraser Valley

Don Cayo references a Conference Board of Canada report, saying price reductions from supply- managed farmers would be provided to the consumer, but most research shows this just won’t happen. Farmers aren’t the ones selling products to consumers; this is the responsibility of retailers.

His article also sites claims that supply management is preventing us from taking advantage of huge demands for dairy exports. Exporting powdered milk, a commodity product largely imported by Asia, is equivalent to sending raw logs instead of finished lumber. Also it would be difficult for Canada to compete against subsidized exports from areas such as California, New Zealand and Australia.

Canadian supply- managed farmers should work on expanding their market on value- added exports, such as high- end specialty cheeses, and supply management doesn’t prevent this.

Dismantling supply management seems like an easy solution, but the system exists for a reason. Al Mussell from the George Morris Center, who has worked with the Conference Board in the past, agrees. In a 2010 report he said “supply management critics seem to assume that the only way to resolve the challenges of milk supply management is to eliminate marketing boards and the supply management system they implement. This is counterproductive.” MAURICE DOYON Laval University, Quebec