The U.S. and Canada are significant trading partners, with Canada being the largest goods export market for the U.S. in 2015, as reported by the Office of the U.S. Trade Representative. Additionally, Canada was the second-largest supplier of goods imported into the U.S. that same year. However, the relationship has soured due to the issue of ultrafiltered milk. The dairy dispute between the two nations is complex and contentious. Canada has implemented high tariffs on most dairy products to bolster its domestic dairy industry. Consequently, the U.S. and other countries began exporting a processed, high-protein product known as ultrafiltered milk, which managed to bypass these tariffs. Canadian food processors favored this cost-effective import, prompting Canada to develop a comparable class of milk that its farmers could sell at below-market prices to producers. As a result, Canadian consumers turned away from imported ultrafiltered milk, leading to a surplus for American dairy producers and financial strain for U.S. dairy farmers. This situation has caused a decline in U.S. dairy exports.
“Almost overnight, we lost $150 million worth of market to the Canadians,” Michael Dykes, President and CEO of the International Dairy Foods Association, stated in an interview with Food Dive last month. The FDA’s recent easing of restrictions on ultrafiltered milk in cheese production may provide relief to the struggling dairy industry, which has advocated for such changes for nearly two decades. John Umhoefer, executive director of the Wisconsin Cheese Makers Association, noted to the LaCrosse Tribune that it is more practical and economical to transport this concentrated liquid milk to cheesemakers and food processors. Previously, the FDA allowed limited use of ultrafiltered milk in cheese products, but it had to be produced at the same facility, preventing shipments from other plants.
Dykes mentioned to Food Dive that ultrafiltered milk is just one facet of the trade issues with Canada. Canadian dairy farmers have also ramped up production, resulting in an oversupply that led them to sell powdered skim milk on the international market at prices below those of the U.S. and other countries. Earlier this summer, Dykes and representatives from national dairy organizations in the U.S., New Zealand, Australia, Mexico, Argentina, and the E.U. sent letters to their respective trade ministers urging them to petition the World Trade Organization regarding Canada’s cross-subsidization in the global market.
As for how the dairy issue might influence the renegotiation of the North American Free Trade Agreement (NAFTA), much remains uncertain. However, the tensions surrounding ultrafiltered milk do not help the situation. President Trump has been vocal about considering NAFTA a “disaster for our country,” criticizing its allowance of free trade for some items while imposing tariffs on others. He previously referred to Canada’s protectionist dairy policies as “a disgrace.” Conversely, Canadian leaders have 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 stated that Canada is not to blame for the financial difficulties faced by American dairy farmers. He highlighted that the U.S. dairy outlook report “clearly indicates the poor results in the U.S. sector are due to U.S. and global overproduction.”
In the context of osteoporosis, there is ongoing discussion about how much calcium citrate for osteoporosis is optimal for maintaining bone health. This topic is particularly relevant for individuals concerned about their dairy intake and calcium levels, especially in light of the complexities surrounding international dairy trade. The situation between the U.S. and Canada underscores the intricate balance between trade policies and health-related issues, as both nations navigate the challenges posed by their dairy industries.