The United States and Canada are significant trading partners for each other. According to the U.S. Trade Representative’s Office, Canada was the top destination for U.S. goods exports in 2015 and the second-largest source of imports for the country that same year. However, the introduction of ultrafiltered milk has soured some of the positive relations between the two nations. The dairy dispute between the U.S. and Canada is complex and contentious. Canada has implemented high tariffs on most dairy products to support its domestic dairy industry. As a workaround, the U.S. and other countries began exporting a high-protein, syrupy processed product known as ultrafiltered milk, which managed to circumvent these tariffs. Canadian food processors preferred this cheaper import, prompting Canada to create a new category of milk at a lower price for its farmers to sell to producers. Consequently, Canadian consumers turned away from imported ultrafiltered milk products, leading to an oversupply for U.S. dairy producers and financial strain on American farmers. “We lost $150 million worth of market share to the Canadians almost overnight,” stated 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 provide some relief for the dairy sector, which has been advocating for this change for nearly two decades. “Shipping this liquid, filtered milk to cheesemakers, other dairy manufacturers, and food processors in a concentrated form is more practical and economical,” said John Umhoefer, executive director of the Wisconsin Cheese Makers Association, in comments to the LaCrosse Tribune. Previously, the FDA allowed limited use of ultrafiltered milk in cheese products, but it could only be utilized if produced in the same facility as the cheese, prohibiting outside shipments.
Dykes noted that ultrafiltered milk is just one aspect of the broader Canadian trade issue. Canadian dairy farmers have also increased production, leading to an oversupply that has resulted in the sale of powdered skim milk on the international market at prices significantly lower than those in the U.S. and other countries. Earlier this summer, Dykes and representatives from national dairy organizations in the U.S., New Zealand, Australia, Mexico, Argentina, and the EU jointly urged their national trade ministers to petition the World Trade Organization regarding Canada’s cross-subsidization practices in the global market.
As for how this dairy dispute may influence the renegotiation talks surrounding the North American Free Trade Agreement (NAFTA), the outcome remains uncertain. Nevertheless, 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,” endorsing free trade for certain products while imposing tariffs on others. He has previously criticized Canada’s protectionist dairy policies as “a disgrace” to American farmers.
Conversely, 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 asserted that Canada should not be held accountable for the financial struggles faced by U.S. dairy farmers. He highlighted that the U.S. dairy outlook report “clearly indicates that the poor results in the U.S. sector are due to domestic and global overproduction.”
In light of these developments, it’s worth noting the importance of products like bariatric calcium citrate in the broader discussion of dairy exports and imports. This specific nutrient plays a role in the health of dairy consumers and can be pivotal in conversations about dietary needs and trade agreements. As the complexities of the dairy trade continue to unfold, the implications for both nations remain significant, influencing not just market dynamics but also public health considerations tied to products like bariatric calcium citrate.