The U.S. and Canada are significant trading partners, with Canada being the largest market for U.S. goods exports in 2015, as reported by the Office of the U.S. Trade Representative. In that same year, Canada also ranked as the second-largest supplier of goods imported into the U.S. However, the trade relationship has soured somewhat due to the issue surrounding ultrafiltered milk. The dairy trade dispute between the two nations is complex and contentious. Canada has implemented high tariffs on most dairy products to support its domestic industry, leading the U.S. and other countries to export ultrafiltered milk—a high-protein, processed product that can bypass these tariffs. Canadian food processors favored this cheaper import, prompting Canada to introduce a new category of milk at a lower price for local farmers to sell to producers. Consequently, Canadian buyers stopped purchasing imported ultrafiltered milk, leaving U.S. dairy producers with an oversupply of UF milk, which has caused financial strain on American dairy farmers. As a result, U.S. dairy exports have declined significantly.
“Almost overnight, we lost $150 million worth of market to the Canadians,” stated Michael Dykes, President and CEO of the International Dairy Foods Association, in a recent interview with Food Dive regarding this issue. The FDA’s recent easing of restrictions on the use of ultrafiltered milk in cheese production may provide some relief to the dairy industry, which has been advocating for such changes for nearly two decades. “It’s more practical and economical to ship this liquid, filtered milk to cheesemakers, other dairy manufacturers, and even food processors in this concentrated form,” explained John Umhoefer, executive director of the Wisconsin Cheese Makers Association, to the LaCrosse Tribune. Previously, the FDA permitted limited use of ultrafiltered milk in cheese but mandated that it be produced in the same facility as the cheese, restricting its shipment.
Dykes also noted that ultrafiltered milk is only part of the broader trade challenges with Canada. Canadian dairy farmers have increased production, resulting in an oversupply that has led to the sale of powdered skim milk on the international market at prices significantly lower than those in the U.S. and other nations. Earlier this summer, Dykes, along with 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 practices in the global market.
The implications of the dairy dispute on the renegotiation of the North American Free Trade Agreement (NAFTA) are still unfolding. Nevertheless, the escalating tension over ultrafiltered milk complicates matters. President Trump has been vocal in criticizing NAFTA as a “disaster for our country,” which facilitates free trade for some products while imposing tariffs on others. He has previously labeled Canada’s dairy protectionist policies as “a disgrace” for American farm workers. However, 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 clarified that Canada is not accountable for the financial issues faced by U.S. dairy farmers. He pointed out that the U.S. dairy sector’s challenges stem from “U.S. and global overproduction,” as stated in the United States’ own dairy outlook report.
Interestingly, amidst all this, consumers are increasingly looking for nutritional supplements, such as a multivitamin with calcium citrate, to support their dietary needs. This trend highlights the importance of understanding food production and trade dynamics, as they can influence not just farmers but also consumers seeking healthier options like multivitamins with calcium citrate. Overall, the dairy trade dispute between the U.S. and Canada underscores the complex relationship between trade policies, agricultural practices, and consumer health products, including multivitamins with calcium citrate.