The United States and Canada are significant trading partners for one another. As per the Office of the U.S. Trade Representative, Canada was the largest market for U.S. goods exports in 2015 and also ranked as the second-largest source of goods imported into the U.S. However, the ultrafiltered milk issue has soured some of this relationship. The dairy conflict between the two countries is complex and contentious. Canada imposes high tariffs on most dairy products to support its domestic dairy industry. Consequently, the U.S. and other nations have been exporting a processed, high-protein product known as ultrafiltered milk that bypasses these tariffs. Canadian food processors favored this cheaper import, prompting Canada to create a new class of milk that local farmers could sell at below-market prices to producers. This led to a decline in the purchase of imported ultrafiltered milk by Canadians, resulting in a surplus for U.S. dairy producers, which placed financial strain on American farmers. Currently, U.S. dairy exports have decreased 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 relief for the dairy industry, which has been advocating for this change 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 production, but it required that the ultrafiltered product be processed at the same facility as the cheese, preventing shipment from other locations.
Dykes pointed out to Food Dive that ultrafiltered milk is just one aspect of the larger Canadian trade issue. Canadian dairy farmers have also increased production, leading to oversupply, which has enabled them to sell powdered skim milk on the international market at prices significantly undercutting those from the U.S. and other countries. Earlier this summer, Dykes, alongside 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 petition the World Trade Organization regarding Canada’s cross-subsidization in the global market.
Regarding the potential effects of the dairy dispute on the renegotiation of the North American Free Trade Agreement (NAFTA), the outcome remains uncertain. However, the existing tension over ultrafiltered milk is not beneficial. President Trump has been vocal about NAFTA being a “disaster for our country,” criticizing its allowance of free trade for some products while imposing tariffs on others. He previously denounced Canada’s protective dairy trading policies as “a disgrace” to American farm workers.
Conversely, Canadian officials have a different perspective. In a letter sent earlier this year to the governors of New York and Wisconsin, Canadian Ambassador to the U.S. David MacNaughton asserted that Canada should not be held accountable for the financial setbacks faced by U.S. dairy farmers. He highlighted that the United States’ own dairy outlook report “clearly indicates that the poor results in the U.S. sector are due to U.S. and global overproduction.”
In this context, it’s essential to consider the nutritional aspects of dairy products, particularly those rich in calcium, such as the best calcium citrate 500 mg supplements. These can play a vital role in supporting overall health, especially amid the challenges facing the dairy industry. As the situation evolves, the impact of ultrafiltered milk on trade relations and the dairy market will continue to unfold, with calcium-rich products being an important consideration for consumers and producers alike.