The Milk Producer - March 2011 - (Page 26)

POLICYUPDATE By Sharon Laidlaw Trade concerns Government remains committed to keeping supply management intact throughout negotiations D espite the federal government’s commitment to an ambitious trade agenda, dairy producers can rest assured it remains keen on defending supply management, delegates were told. Gilles Gauthier, Canada’s chief agriculture negotiator, said the current stage of negotiations being undertaken by the Canadian government with dozens of countries, specifically at the World Trade Organization (WTO) and with the European Union (EU) for the Comprehensive Economic Trade Agreement (CETA), should not be seen as a threat to the dairy industry. As Canada’s second-largest trading partner, reaching almost $6 billion annually, the EU presents significant opportunities for Canadian farmers, said Gauthier. “The EU is keenly aware of our government’s position with regard to supply management,” he reassured delegates. “We are having close and full consultations as negotiations progress on this issue.” On a global scale, the dairy sector is not very open to trade, said Gauthier. Only about seven per cent of dairy products are traded internationally. China is by far the largest dairy product importer, bringing in close to 400,000 tonnes per year of skim milk powder, up 30 per cent in the last five years. While the Canadian dairy industry is envied by some countries around the world, it does “face challenges from domestic and outside pressures,” he said. Canada’s dairy policy is subject to close scrutiny, and its leaders must continue to work together and be ready to adjust practices based on 26 | March 2011 | MilkPRODUCER Gauthier: Dairy farmers should not view negotiations as a threat. domestic and world market realities, Gauthier added. Agriculture Minister Gerry Ritz also re-affirmed the government’s support for supply management. In referencing international trade talks, Ritz said “we have no intention of moving an inch on supply management.” He praised dairy farmers for their continued hard work and discussed the important role they play in research, efficiency, innovation and economic contribution. Brichart: European dairy farmers face much greater price fluctuation. “Supply management is a legitimate system that brings stability without government subsidies,” he said. European dairy policy changing Dairy producers, particularly in France, are bracing for significant changes as the European Union (EU) moves closer to eliminating quotas in 2015, said a French dairy farmer. “We are moving into less regulation in the domestic market and accepting the principle of greater price fluctuations,” said Henri Brichart, citing one Dairy Farmers of Canada recently held its Annual Policy Conference in Ottawa, Ont. Assistant editor Sharon Laidlaw filed these reports from the meeting.

Table of Contents for the Digital Edition of The Milk Producer - March 2011

The Milk Producer - March 2011
Table of Contents
Editor's Notes
DFO Chair's Message
Dairy Update
DFC Promotion
Farm Finance
Issues Update
Cover Story
Research
Applied Science
Ruminations
Markets
New 'N' Noted
Back Forty

The Milk Producer - March 2011