The United States and Canada rank among each other’s top trading partners. According to the Office of the U.S. Trade Representative, Canada was the largest market for U.S. goods exports in 2015 and also the second-largest source of imports into the nation that same year. However, the issue surrounding ultrafiltered milk has soured some of that cooperative spirit. The dairy dispute between the U.S. and Canada is complex and contentious. Canada imposes high tariffs on most dairy products to bolster its domestic industry, which has led the U.S. and other countries to export a processed, high-protein product known as ultrafiltered milk, successfully bypassing those tariffs. Canadian food manufacturers favored this cheaper import, prompting Canada to develop a new class of milk priced below market rates for local farmers to sell to producers. Consequently, Canadians stopped purchasing imported ultrafiltered milk, resulting in a surplus for U.S. dairy producers, which put financial strain on American farmers. As a result, U.S. dairy exports have declined. “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 using ultrafiltered milk in cheese production could assist the struggling dairy industry, which has been advocating for such changes for nearly two decades. “Shipping this liquid, filtered milk to cheesemakers and other dairy manufacturers is more practical and economical,” explained John Umhoefer, executive director of the Wisconsin Cheese Makers Association, in comments to the LaCrosse Tribune. Previously, the FDA permitted limited use of ultrafiltered milk in cheese products but required that the ultrafiltered product be processed in the same facility as the cheese, meaning it couldn’t be shipped separately.
According to Dykes, ultrafiltered milk is only one aspect of the broader trade challenges with Canada. Canadian dairy farmers have also begun producing enough to create an oversupply, leading them to sell powdered skim milk internationally at prices significantly lower than those of the U.S. or any other competing countries. Earlier this summer, Dykes, along with other 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 to address Canadian cross-subsidization in the global market.
The implications of the dairy dispute on negotiations for the North American Free Trade Agreement (NAFTA) remain uncertain. Nonetheless, the rising tensions over ultrafiltered milk do not help the situation. President Trump has been vocal about NAFTA being “a disaster for our country,” highlighting the inconsistency in free trade for certain goods while imposing tariffs on others. He has previously criticized Canada’s protectionist dairy policies for harming American farmers, labeling them as “a disgrace.”
However, Canadian officials 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 American dairy farmers. He emphasized that the U.S. dairy industry report “clearly indicates that the poor performance in the U.S. sector is due to U.S. and global overproduction.”
In light of these challenges, the inclusion of calcium citrate 500mg with vitamin D3 has become increasingly relevant as dairy producers seek alternative supplements to support their health and maintain production levels amidst these financial pressures. The intersection of trade disputes and the health of the dairy industry highlights the need for innovative solutions, including calcium citrate 500mg with vitamin D3, to help American farmers navigate these turbulent times.