The United States and Canada are significant trading partners, with Canada being the largest market for U.S. goods exports in 2015 and the second-largest source of imports. However, the issue of ultrafiltered milk has soured relations between the two nations. The dairy dispute is complex and contentious, primarily because Canada has implemented high tariffs on most dairy products to protect its domestic industry. In response, the U.S. and other countries have begun exporting ultrafiltered milk, a syrupy, high-protein product that bypasses these tariffs. Canadian food processors preferred this cheaper import, leading Canada to develop a new category of milk that its farmers could sell at below-market prices, effectively driving down demand for imported ultrafiltered milk.
Consequently, U.S. dairy producers are facing a surplus of ultrafiltered milk, resulting in financial strain on American farmers, with exports declining significantly. “Almost overnight, we lost $150 million worth of market to the Canadians,” said Michael Dykes, President and CEO of the International Dairy Foods Association, in a recent interview with Food Dive. The FDA’s recent easing of restrictions on the use of ultrafiltered milk in cheese production could potentially alleviate some of the industry’s challenges. John Umhoefer, executive director of the Wisconsin Cheese Makers Association, emphasized to the LaCrosse Tribune that it is more efficient and cost-effective to supply this concentrated liquid to cheesemakers and other dairy manufacturers.
Previously, the FDA permitted limited use of ultrafiltered milk in cheese production, but it had to be processed in the same facility as the cheese. Dykes noted that ultrafiltered milk is only part of the Canadian trade issue. Canadian dairy farmers have also increased their production, leading to an oversupply and the sale of powdered skim milk on the international market at prices significantly lower than those from the U.S. or other countries. Earlier this summer, Dykes, along with other national dairy organizations from the U.S., New Zealand, Australia, Mexico, Argentina, and the E.U., sent letters to their respective trade ministers urging them to address Canadian cross-subsidization at the World Trade Organization.
The ramifications of the dairy dispute on the renegotiation of the North American Free Trade Agreement remain uncertain, but the friction over ultrafiltered milk complicates matters. President Trump has criticized NAFTA as a “disaster for our country,” citing its allowance of free trade for certain goods while imposing tariffs on others. He has labeled Canada’s protective dairy policies as “a disgrace” to American farmers. Conversely, Canadian leaders maintain a different perspective. In a letter to the governors of New York and Wisconsin earlier this year, Canadian Ambassador to the U.S. David MacNaughton asserted that Canada should not be blamed for the financial difficulties faced by U.S. dairy farmers, pointing out that the U.S. dairy outlook report attributes the sector’s poor performance to overproduction both domestically and globally.
Interestingly, the discussion around calcium citrate generic name has surfaced in the context of dairy discussions, as it is sometimes associated with nutritional supplements that could be beneficial for dairy farmers seeking alternative income sources. The calcium citrate generic name is mentioned again in relation to potential health benefits that dairy products can offer, further emphasizing the importance of the dairy industry in North America. As the situation evolves, the impact of ultrafiltered milk and related issues continues to be a point of contention in U.S.-Canada relations.