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cowpower

Posted 4/21/2017 12:15 (#5975312)
Subject: The real facts about the canadian dairy industry

St-Eugene, Ontario

Seems at the moment I can't turn on the tv without hearing Trump attack the Canadian dairy system but the sad part is I have yet to see a report that has the facts straight! Even on the Canadian tv stations they have no clue what they're talking about so I figured I'd at least get the story straight on agtalk. All the news stories say that Canada has imposed tariffs on ultra-filtered milk from the US. That's false. Canadian dairy processors have been importing ultra-filtered milk for quite a few years tariff free. When we Canadians started seeing the success plants were having using these ingredients (and our protein price was crashing) we decided we needed to make our own ultra-filtered milk. We created a new milk class called class 7 which is to make ultra-filtered milk ingredients. Now Canadian plants are in operation (one less than an hour drive from me) and we are pricing ultra filtered milk at or below US prices. Canadian dairy processors can still buy tariff free ultra filtered milk from the US if they choose so but many are choosing to buy Canadian products instead.
I'm sure this is a sensitive subject for American dairy farmers who are already dealing with a massive over supply issue but we still can't be running around spreading inaccurate facts. It's a good thing though for American dairy farmers that we have our supply management system in place or else we could be one more country contributing to an over supply of the world market!
Anyway it's an ugly, rainy day here so I'm going to do what makes me the most money on those days, hoof trim! So don't rip my head off while I'm gone! I'll check back in this evening.

Supa Dexta

Posted 4/21/2017 13:21 (#5975415 - in reply to #5975312)
Subject: RE: The real facts about the canadian dairy industry

NS Canada

Funny how the local pulp mill had a 20% tariff slapped on it, and our softwood lumber and tar sands has been discounted for years by the americans.

Jim

Posted 4/22/2017 00:16 (#5976253 - in reply to #5975415)
Subject: RE: The real facts about the canadian dairy industry

Driftless SW Wisconsin

Please don't lump tar sands in with milk and lumber. Tar sands oil is a whole different, complex, technical issue. Especially at $25.- $50/barrel oil.

Basically, everyone needs to act in their own best interests.

I could have sworn I heard our WI governor say a couple years ago that Wisconsin was not producing enough milk for all the cheese plants, that we were having to "import" milk from across the pond (Minnesota) and that Wisconsin dairy farmers needed to increase their milk output to keep all that Wisconsin cheese made from Wisconsin milk...

Anyone else remember hearing that? Straighten me out.

A brand new multi thousand cow dairy opened recently in the next county...something does not compute here.

Edited by Jim 4/22/2017 00:26

Supa Dexta

Posted 4/22/2017 02:02 (#5976267 - in reply to #5976253)
Subject: RE: The real facts about the canadian dairy industry

NS Canada

Of course its its own issue as is milk, as is lumber - but I should have said -unfairly= discounted, beyond that of the added transportation and refining costs.

“in the USA some very unfair things have happened to our oil producers and others. What the American refinery's have done to Canada is very unfair' - Canadian Trump would say.

Keeping pipelines in limbo have transferred a huge amount of wealth to the US, but our own dopes haven't helped get refining and pipelines to other markets either.

Milk just happens to be the hot topic of the day, but in reality this whole nafta thing could keep trump occupied for the next 4 yrs alone there's so much to it, more than just 'cancelling nafta' as he liked to imagine.

ntexcotton

Posted 4/23/2017 07:59 (#5977799 - in reply to #5976267)
Subject: RE: The real facts about the canadian dairy industry

North Central Texas

All the same thing. Let's over produce milk and let's over drill for oil. Happens everytime when you throw a bunch of guys out there running things that don't remember the $10 or less prices.

Heck if we quit trading oil between the US, Canada, and Mexico, there wouldn't be a trade deficit to talk about. Then the US can start a new deficit in the middle east. We don't need to get all our oil next door because we need balanced trade with our neighbors. Peaceful, uninterrupted supply or middle east?

There are some shallow wells here that produce a heavy oil and it gets the crud discounted out of it just like the tar sand oil.

dairyman78

Posted 4/22/2017 07:59 (#5976509 - in reply to #5976253)
Subject: RE: The real facts about the canadian dairy industry

S.C. Wisconsin

http://wfbf.com/ag-newswire/governor-scott-walker-seeks-applicants-...

Like any other government program, the are designed for the processor or end user using the farmer for cover.

Minnesotaboy

Posted 4/21/2017 16:15 (#5975569 - in reply to #5975312)
Subject: RE: The real facts about the canadian dairy industry

SW Minnesota

Thanks for explaining what's going on, there has been so many different stories it hard to know what is true.

Galaxie64

Posted 4/21/2017 18:32 (#5975716 - in reply to #5975312)
Subject: RE: The real facts about the canadian dairy industry

WY, OK

Funny I haven't herd him or anyone else mention any milk let alone Canadian. I am guessing your "local" news found a clip somewhere and just runs it over and over to keep you guys riled up and you keep watching.

American dairy farmers have been held back by gvt. subsidies for so long they have no real market. Poor doers won't die fast enough and there is no incentive for the "good" ones to expand so there they be withering away.

Supa Dexta

Posted 4/21/2017 20:33 (#5975920 - in reply to #5975716)
Subject: RE: The real facts about the canadian dairy industry

NS Canada

- Yesterday President Trump joined the fray when he visited Wisconsin to tell the world that, “in Canada some very unfair things have happened to our dairy farmers and others.

Taken from: http://www.wisconsinfarmersunion.com/single-post/2017/04/19/Milking... - a bit long, but informative on what's really going on down there.

1 year this has been coming down the pipe and then all of a sudden it was 30 days notice, and to take some of the heat of the US dairy problems, Canada gets blamed. But meanwhile - 'According to data from the U.S. Department of agriculture, 43 million gallons of milk were dumped in fields, manure lagoons or animal feed or were discarded at plants just in the first eight months of 2016.'

Edited by Supa Dexta 4/21/2017 20:37

dmatt

Posted 4/22/2017 08:46 (#5976569 - in reply to #5975920)
Subject: RE: The real facts about the canadian dairy industry

manitoba

Supa Dexta - 4/21/2017 20:33

-
Taken from: http://www.wisconsinfarmersunion.com/single-post/2017/04/19/Milking... - a bit long, but informative on what's really going on down there.

'

I read this article and I am am wondering if there is a typo in it.
Quote from article:
"Recipients of this grant can be awarded as much as $5,000 and would be required to pay a cost share of 20 percent of the total grant amount."

Was the grant really capped at $5000. ??????

Edited by dmatt 4/22/2017 08:47

mid mn

Posted 4/21/2017 18:37 (#5975726 - in reply to #5975312)
Subject: RE: The real facts about the canadian dairy industry

I have no problem with the Canadians.
What we as dairymen in the US need to do during oversupply times is cull our less profitable cows. The problem is when their are low prices someone starts to push that we need a quota system like Canada. Then everyone tries to produce as much as possible so they will have a high base and it just snowballs.

mndairyfarmer

Posted 4/21/2017 20:29 (#5975915 - in reply to #5975312)
Subject: RE: The real facts about the canadian dairy industry

swmn

I have read all of your info elsewhere so I know you are correct. I do feel I smell a rat in this whole deal. I can't believe grasslands waited this long, maybe they were hoping for a miracle. I do have a question for Canada. If you have a quota system where did the milk come from for this new class? Is it extra milk over your quota? What happens when you go over your quota? Not trying to start a war just asking and trying to understand. It's bad enough to work for poor prices but when you don't get paid at all... well you know the result. I feel for these dairy guys. It's a tough situation. I don't blame the Canadians for supporting there own. I don't know what all of the trade deals say or if rules were broken. My milk actually goes to a Canadian owned company. Good people to deal with. I guess everyone needs to go grab a big bowl of ice cream before bed and throw an extra slice of cheese on that burger on the grill

tonesaguy

Posted 4/21/2017 20:44 (#5975949 - in reply to #5975915)
Subject: RE: The real facts about the canadian dairy industry

Chilliwack, British Columbia

In the last 15 months we have been given more than 10% allocations of quota to fill this hole, and apparently more to come as new processing comes online.

Glenn

cowpower

Posted 4/21/2017 22:45 (#5976177 - in reply to #5975915)
Subject: RE: The real facts about the canadian dairy industry

St-Eugene, Ontario

mndairyfarmer - 4/21/2017 21:29

I have read all of your info elsewhere so I know you are correct. I do feel I smell a rat in this whole deal. I can't believe grasslands waited this long, maybe they were hoping for a miracle. I do have a question for Canada. If you have a quota system where did the milk come from for this new class? Is it extra milk over your quota? What happens when you go over your quota? Not trying to start a war just asking and trying to understand. It's bad enough to work for poor prices but when you don't get paid at all... well you know the result. I feel for these dairy guys. It's a tough situation. I don't blame the Canadians for supporting there own. I don't know what all of the trade deals say or if rules were broken. My milk actually goes to a Canadian owned company. Good people to deal with. I guess everyone needs to go grab a big bowl of ice cream before bed and throw an extra slice of cheese on that burger on the grill

Where the milk came from is that we have seen a tremendous growth in butterfat demand in the last couple years which has caused us to get quota increases to supply this new demand, 15% in the last 2 years. At the same time imported ultra-filtered milk was displacing our protein in the cheese vats causing us to have a huge over supply of protein and we had been forced to dump 10's of millions of litres of skim milk in lagoons over the last couple years. So we already had the supply.

Wisconsindairy

Posted 4/22/2017 22:36 (#5977513 - in reply to #5975312)
Subject: RE: The real facts about the canadian dairy industry

Freedom, WI

I honestly can't blame Canada in the least. If you guys up there have a plan that makes better business sense than to buy from the U.S. who am I to stop you? The whole situation was inevitable. I don't like how Grassland handled this considering the fact that they knew what was going down last November. They needed the production up until their market dropped out and that's why there was the short notice. That in my call is about as low down as you can get, just out to make a buck.

redoak

Posted 4/23/2017 06:39 (#5977679 - in reply to #5977513)
Subject: My biggest issue with supply management

sw ontario

Everything about supply management works as best as possible in the feather and dairy business, biggest issue I see is quota values--When dairy quota is trading for $30k + or - for a piece of paper too milk 1 cow and is it something like $300 CAD a laying hen there needs to be a way for new entrants too get in--hard for anybody to buy a farm,cows,ect. and then pay $6 mil. too milk 200 cows --- It would not be popular but what if dairy quota prices still flaoted but when you exit the business they cap your quota payment at say $5k and quota goes back too the board......or if you sell farm as on going business then quota would stay with it......Every dairy guy deserves every nickel he gets for milking but it upsets many when farms around Mitchell/Stratford sell for $20k an acre and only quota guys can pay that much.... Dairy guys are carrying a lot of debt per cow in Ontario ,something like 10x what US debt per cow is because of quota cost.....for SM guys you have a good system,consumer prices are fair ,now is there any better way too handle quota values? Or just supply and demand -2 dairy's here are expanding

buckmaster

Posted 4/23/2017 08:18 (#5977829 - in reply to #5977679)
Subject: RE: My biggest issue with supply management

Sounds like it is like sugar used to be here when an acre of suger beet contract was worth thousands per acre. Then free trade and the wto kinda wrecked that. I hope you Canada producers fight to keep what you have

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