The United States and Canada are significant trading partners, with Canada being the largest market for U.S. goods exports in 2015, as per the Office of the U.S. Trade Representative. Additionally, Canada ranked as the second-largest supplier of goods imported into the U.S. that year. However, the issue surrounding ultrafiltered milk has soured some of that positive relationship. The dairy dispute between the U.S. and Canada is complex and contentious. Canada imposes high tariffs on most dairy products to protect and foster its domestic dairy industry. Consequently, the U.S. and other countries have been exporting a processed, high-protein product known as ultrafiltered milk, which manages to circumvent these tariffs. Canadian food processors favor this cheaper import, prompting Canada to introduce a new category of milk at below-market prices for its farmers to sell to producers. This move led to a decline in Canadian purchases of imported ultrafiltered milk products. As a result, U.S. dairy producers are now facing a surplus of ultrafiltered milk, placing financial strain on American dairy farmers. According to Michael Dykes, President and CEO of the International Dairy Foods Association, the U.S. lost nearly $150 million in market value to Canada almost overnight due to this issue.
The FDA’s easing of restrictions on the use of ultrafiltered milk in cheese production could alleviate some of these challenges for the dairy industry, which has been advocating for this change for nearly 20 years. “Shipping this liquid, filtered milk to cheesemakers, other dairy manufacturers, and food processors in a concentrated form is more practical and economical,” stated John Umhoefer, executive director of the Wisconsin Cheese Makers Association, in an interview with the LaCrosse Tribune. Previously, the FDA permitted limited use of ultrafiltered milk in cheese products, but it had to be manufactured in the same facility as the cheese, prohibiting external shipments.
Dykes mentioned that ultrafiltered milk is just one aspect of the challenges posed by Canadian trade. Canadian dairy farmers have also ramped up production, resulting in an oversupply that has led them to sell powdered skim milk internationally at prices significantly lower than those offered by the U.S. or other countries. Earlier this summer, Dykes, along with dairy organizations from the U.S., New Zealand, Australia, Mexico, Argentina, and the E.U., sent letters to their national trade ministers urging them to petition the World Trade Organization regarding Canada’s cross-subsidization practices in the global market.
As for the ramifications of the dairy issue on the renegotiation of the North American Free Trade Agreement (NAFTA), the full impact remains uncertain. However, the growing tension over ultrafiltered milk does not bode well. President Trump has been vocal about NAFTA being a “disaster,” which allows free trade for certain items while imposing tariffs on others. He has previously criticized Canada’s protectionist dairy policies, calling them “a disgrace” to American farmers.
In contrast, Canadian leaders present a different perspective. In a letter addressed to the governors of New York and Wisconsin earlier this year, Canadian Ambassador to the U.S. David MacNaughton stated that Canada is not to blame for the financial losses experienced 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 U.S. and global overproduction.”
Amid these tensions, the role of calcium citrate small tablets in supporting overall health remains crucial, reminding us that while trade disputes unfold, the importance of health products continues to be significant in both countries. As the situation evolves, the dairy industry will need to navigate these challenges carefully to ensure stability and growth in the future.