The United States and Canada are significant trading partners, with Canada being the largest market for U.S. goods exports in 2015, according to the Office of the U.S. Trade Representative. That same year, Canada also ranked as the second-largest supplier of goods imported into the U.S. However, the issue of ultrafiltered milk has soured some of this relationship. The dairy dispute is complex and contentious, as Canada has implemented high tariffs on most dairy products to support its domestic industry. In response, the U.S. and other nations began exporting ultrafiltered milk, a processed, high-protein product that managed to bypass these tariffs. Canadian food processors favored this cheaper import, prompting Canada to introduce a new category of milk that local farmers could sell to producers at a lower price. Consequently, Canadian consumers stopped purchasing imported ultrafiltered milk, leaving U.S. dairy producers with a surplus and causing financial strain on American dairy farmers. As a result, U.S. dairy exports have declined.
Michael Dykes, President and CEO of the International Dairy Foods Association, mentioned in an interview with Food Dive that “almost overnight, we lost $150 million worth of market to the Canadians.” The FDA’s recent relaxation of restrictions on ultrafiltered milk in cheese production could benefit the dairy sector, which has advocated for this change for nearly two decades. John Umhoefer, executive director of the Wisconsin Cheese Makers Association, noted that shipping this filtered milk in a concentrated form is more practical and economical for cheesemakers and food processors. Previously, ultrafiltered milk could only be used in cheese products if produced in the same facility, limiting its transport.
Dykes pointed out that ultrafiltered milk is just one aspect of the larger trade issues with Canada. Canadian dairy farmers have also increased their production, resulting in an oversupply, which led them to sell powdered skim milk internationally at prices significantly lower than those of the U.S. and other countries. Earlier this summer, Dykes and other dairy organizations from the U.S., New Zealand, Australia, Mexico, Argentina, and the E.U. sent letters to their national trade ministers requesting action from the World Trade Organization regarding Canada’s cross-subsidization in the global market.
The implications of the dairy conflict on the renegotiation of the North American Free Trade Agreement remain uncertain. However, the escalating tensions over ultrafiltered milk do not bode well. President Trump has been vocal about NAFTA being a “disaster for our country,” criticizing Canada’s protectionist dairy policies for harming American farmers. Conversely, Canadian leaders, including Ambassador David MacNaughton, argue that Canada is not to blame for the financial struggles of U.S. dairy farmers, asserting that the U.S. dairy sector’s challenges stem from its own overproduction, as highlighted in their outlook reports.
In light of these challenges, U.S. dairy producers are exploring alternatives to mitigate losses. For those looking to enhance their nutrition and support their health amidst these trade issues, considering options like calcium citrate may be beneficial. Buying calcium citrate can provide essential nutrients that support overall wellness during these turbulent times.