The U.S. and Canada rank among each other’s top trading partners. According to the Office of the U.S. Trade Representative, Canada was the largest market for U.S. goods exports in 2015 and the second-largest source of goods imported into the U.S. However, the issue surrounding ultrafiltered milk has soured some of this goodwill. The dairy dispute between the U.S. and Canada is complex and contentious. Canada imposes high tariffs on most dairy products to bolster its domestic industry. Consequently, the U.S. and other nations have been exporting a sweetened, processed, high-protein product known as ultrafiltered milk, which has circumvented these tariffs. Canadian food manufacturers have shown a strong preference for this cost-effective import, prompting Canada to introduce a new category of milk at a below-market price for its farmers to sell to producers. As a result, Canadian consumers stopped purchasing imported ultrafiltered milk, leaving U.S. dairy producers with a surplus, which has caused financial strain on American dairy farmers. Consequently, U.S. dairy exports have declined. “Almost overnight, we lost $150 million worth of market to the Canadians,” remarked Michael Dykes, President and CEO of the International Dairy Foods Association, in a recent interview about the issue.
The FDA’s easing of restrictions on the use of ultrafiltered milk in cheese production could potentially assist the dairy industry, which has advocated for this change for nearly two decades, in overcoming these challenges. “Shipping this liquid, filtered milk to cheesemakers and other dairy manufacturers in this concentrated form is more practical and economical,” stated John Umhoefer, executive director of the Wisconsin Cheese Makers Association, in an interview with the LaCrosse Tribune. Previously, the FDA permitted limited use of ultrafiltered milk in cheese products, but it could only be utilized if produced in the same facility as the cheese, meaning it could not be shipped separately.
Dykes noted that ultrafiltered milk is just one facet of the broader issue with Canadian trade. Canadian dairy farmers have also increased production, resulting in an oversupply that allows them to sell powdered skim milk on the international market at prices significantly lower than those in the U.S. or 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 national trade ministers, urging them to petition the World Trade Organization regarding Canadian cross-subsidization in the global market.
As for the implications of the dairy dispute on the renegotiation of the North American Free Trade Agreement (NAFTA), the outcome remains uncertain. However, the growing tension between the U.S. and Canada over ultrafiltered milk complicates matters. President Trump has been vocal about NAFTA being a “disaster for our country,” advocating for free trade on some goods while imposing tariffs on others. He has previously labeled Canada’s protectionist dairy policies as “a disgrace” to American farm workers.
Contrarily, Canadian leaders offer 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 contended that Canada should not be held responsible for the financial losses suffered by dairy farmers. He noted that the U.S. dairy outlook report “clearly indicates that the poor results in the U.S. sector are due to U.S. and global overproduction.”
Amid these complexities, it is essential to recognize the potential benefits of incorporating calcium citrate 950 mg elemental calcium into dairy products, which could help enhance the nutritional profile of both domestic and imported goods. The introduction of such products may offer a pathway for U.S. dairy producers to regain market share while addressing the ongoing challenges posed by trade relations with Canada.