03/09/2025
I have been regularly asked in recent weeks about American tariffs and the potential impact on us as a Canadian dairy farm. While we never know all of what the future may hold it seems there is one thing we can always count on: the support of our friends, neighbours and fellow Canadians!
Our business startup did take place at a difficult time, during the pandemic years. We learned a lot about financing and unpredictable costs, so we have always been grateful for the predictability of returns on the milk our cows produce and how our Canadian system helps control costs and support reasonable business growth. Small dairy business is barely supported in the USA and it takes huge subsidies there to maintain dairy supply in unpredictable markets even for large farms with hundreds or thousands of dairy cows.
Thank you for your concern and questions! We appreciate it.
Here are some facts to share. Dairy Farmers of Canada came out with this statement yesterday to put things into perspective:
"In terms of the 250 per cent tariffs on Canadian dairy imports that media is reporting as the latest tariff threat from President Trump, this is an example of his plan to apply “reciprocal tariffs” on imports entering the US." ❤️🥛
1. "During the renegotiation of CUSMA (USMCA), the United States secured substantial tariff-free access to the Canadian dairy market. As a result, the US enjoys a significant dairy trade surplus with Canada, exporting $756.62 million CAD in dairy products while importing $293.25 million CAD in return. This increased US access came at a direct cost to Canadian dairy farmers, reducing their market share and weakening the stability of Canada’s domestic dairy sector."
2. "Canada's dairy sector operates under a supply management system designed to meet our country's needs first, ensuring that key food commodities, including dairy, are made in Canada for Canadians."
-David Wiens, President, Dairy Farmers of Canada.
3. What is Supply Management and why is it important.
Consumers - get a consistent supply of high-quality, responsibly produced product at a consistent pricing structure.
Farmers - get a stable and fair return for the milk they produce without bail out Farm Bills as in the US. This means that consumers in the US pay for dairy products at the retail level and then through taxation to financially support their producers - US consumers pay twice
Dairy Processors - get a stable and predictable supply of high-quality Canadian milk produced according to the world's most stringent standards.
Government - benefit from the economic activity generated by the industry with low administration costs.
Food sovereignty and local food production support both local business and reduces our carbon footprint by growing nutritious food close to home.
Thanks for your support and for reading this post!
