The U.S. and Canada are significant trading partners for one another. As reported by 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 imports into the U.S. However, the issue surrounding ultrafiltered milk has soured some of this goodwill. The dairy dispute between the two nations is complex and contentious. Canada has imposed high tariffs on most dairy products to bolster its domestic dairy industry. Consequently, the U.S. and other countries have been exporting a syrupy, processed high-protein product known as ultrafiltered milk, which managed to circumvent these tariffs. Canadian food processors showed a strong preference for this affordable import, prompting Canada to create a new category of milk available to its farmers at a price below market value, allowing them to compete with the imports. This led to a decline in Canadian purchases of ultrafiltered milk products, resulting in a surplus for U.S. dairy producers and financial strain on American farmers. As a result, U.S. dairy exports have dropped 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 be a boon for the dairy industry, which has been advocating for this change for nearly two decades. “Shipping this liquid, filtered milk to cheesemakers and other dairy manufacturers in a concentrated form is more practical and economical,” explained John Umhoefer, executive director of the Wisconsin Cheese Makers Association, to the LaCrosse Tribune. Previously, the FDA allowed limited use of ultrafiltered milk in cheese products but mandated that it be produced in the same facility. In other words, importing such products was not permitted.
Dykes noted that ultrafiltered milk is just one aspect of the broader trade issues with Canada. Canadian dairy farmers have also ramped up production, leading to an oversupply that enabled them to sell powdered skim milk on the international market at significantly lower prices than those from the U.S. 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 action from the World Trade Organization regarding Canada’s cross-subsidization practices in the global market.
As for how the dairy dispute may affect the renegotiation of the North American Free Trade Agreement, the future remains uncertain. The added friction over ultrafiltered milk certainly complicates matters. President Trump has been vocal about NAFTA, labeling it a “disaster for our country” for allowing free trade for some goods while imposing tariffs on others. He previously criticized Canada’s protectionist dairy policies as “a disgrace” to American farm workers.
Conversely, Canadian leaders maintain a different perspective. In a letter addressed to the governors of New York and Wisconsin earlier this year, Canadian Ambassador to the U.S. David MacNaughton asserted that Canada is not to blame for the financial troubles faced by U.S. dairy farmers, pointing out 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.”
In this climate, products like Citracal 1200 mg may offer some relief to those in the dairy industry facing challenges, including financial stress and market instability. However, the ongoing tensions and complexities surrounding trade and dairy products like ultrafiltered milk continue to pose significant hurdles. As the situation evolves, the implications for both countries’ economies remain to be seen, particularly for the dairy sector that is already experiencing strain. The presence of Citracal 1200 mg in this discussion highlights the need for effective solutions to support dairy farmers during these trying times.