NEWS PROVIDED BY
Dairy Farmers of Canada (DFC) Apr 29, 2020, 14:37 ET

OTTAWA, April 29, 2020 /CNW/ - The Dairy Farmers of Canada and the Dairy Processors Association of Canada confirm today, that not only were parliamentarians misled by the Trudeau Government, but they too were misled on the date of implementation of Canada-United States-Mexico Agreement (CUSMA). As such they echo the concerns expressed by the Honourable Don Plett, Leader of the Opposition in the Senate, who indicated he had a commitment from the government on the date.

The dairy sector had secured the support of parliamentarians to have the Canada-United States-Mexico Agreement (CUSMA) come into force in conjunction with the beginning of the dairy year (August 1, 2020). This would have allowed the sector a full 12-months of exports per the negotiated concession for  year-one threshold limit on key dairy products, before being constrained by the significant reduction conceded in year two of the agreement. As part of CUSMA, Canada not only transferred to the US part of our domestic dairy production, but it also agreed to self imposed limits on exports of key dairy products.

"Our government was first out of the gate to give notice to the other parties that it was ready to implement CUSMA. The dairy sector was informed at the last minute and judging by the reaction from the opposition parties, we weren't alone in this being a complete surprise," said Jacques Lefebvre, CEO of Dairy Farmers of Canada.

The Trudeau government proceeded to reassure the sector said Mathieu Frigon, President of Dairy Processors Association of Canada, "It told us not to worry, Canada had to send a signal to the US administration that it was committed to CUSMA, but that both the US and Mexico were nowhere close to being able to give notice, thus we shouldn't be concerned about an early implementation date". 
The impact of yet another concession on dairy to the US on the part of the federal government is significant. By coming into force before the start of the dairy year on August 1, 2020, the first-year export cap and access volume will apply immediately and for just a few weeks before a significantly lower second-year export cap is triggered, and significantly more volume is imported into Canada. 
That means an almost 40% reduction in exports being imposed on the Canadian dairy sector as we are focused on ensuring a continued supply of fresh, local dairy products for Canadians.  For dairy producers and processors the early implementation by one month of CUSMA is estimated to represent up to $100 million in losses. Furthermore, the sector will need to contend with an additional $330 million in annual perpetual losses as a result of the lost market share.

ABOUT DAIRY FARMERS OF CANADA
Dairy Farmers of Canada is the national policy, lobbying and promotional organization representing Canadian dairy producers. DFC strives to create stable conditions for the dairy sector in our country. It also seeks to maintain policies that promote the sustainability of Canadian dairy production and promote dairy products and their health benefits.

ABOUT THE DAIRY PROCESSORS ASSOCIATION OF CANADA
The Dairy Processors Association of Canada is Canada's national industry association representing the public policy and regulatory interests of the Canadian dairy processing industry. DPAC's members represent some of the most recognized brands in Canada, providing work to over 23,000 Canadians and contributing $17.3 billion to the national economy.

SOURCE Dairy Farmers of Canada (DFC)

For further information: MEDIA CONTACTS: Lucie Boileau, Director of Communications, Dairy Farmers of Canada, [email protected], 613-220-1724; Amélie Baillargeon, Coordinator, Public Affairs and Operations, Dairy Processors Association of Canada, [email protected], 613-232-7242 ext. 104

On April 2, 2020, Canada notified the United States and Mexico of the completion of its domestic ratification process with respect to the Canada-United States-Mexico Agreement (CUSMA).  With this action, Canada became the first country to provide its notification under the trade agreement.  Mexico followed shortly thereafter.​

British Columbia’s Ministry of Environment and Climate Change Strategy completed its consultation on the proposed Plastics Action Plan at the end of September. Among the proposals British Columbians were asked to comment on, is the removal of an exemption for used milk containers from the province's deposit/refund system, as one measure to increase recycling rates. In addition, input was sought on proposals to ban certain single-use plastic products and to set minimum recycled-content requirements for plastic packaging. A formal announcement is expected this spring.

On November 20, 2019 the Western Milk Pool announced the creation of Dairy Innovation West (DIW), a new venture that will own a raw milk concentrating plant in Alberta. The new facility will have the capacity to accommodate up to 300 million litres per year, producing concentrated milk components for utilization throughout western Canada. DIW is owned by the four western Milk Boards and will be operated by Vitalus Nutrition Inc. For more information, click here.

Federal Agriculture Minister Marie-Claude Bibeau has named Bob Ingratta as the commission’s chairperson for a term ending Dec. 16, 2021, replacing Alistair Johnston. Mr. Ingratta worked in Ottawa for six years (2001-07) as vice-president for regulatory and international affairs with Monsanto Canada, prior to joining the BC Milk Marketing Board as CEO in 2011, where he served until 2017.
 
Minister Bibeau also reappointed Jennifer Hayes for a three-year term as CDC commissioner. Ms. Hayes, first named as a commissioner in 2017, is a dairy and beef producer at Shigawake in Quebec’s Gaspe region and has served as the CDC’s Acting Chair since August 2019.

On May 10, 2019, Global Affairs Canada (GAC) launched the first phase of the comprehensive review of the allocation and administration of Canada’s tariff rate quotas (TRQs) for dairy, poultry and egg products. The first phase of consultations included provincial and territorial governments and covered the entire range of industry stakeholders and key trading partners, which resulted in GAC receiving approximately 200 submissions and holding over 60 meetings with stakeholders...

On February 12, 2019 the Canadian Dairy Commission announced that Plan B Butter manufactured on or after January 1, 2020 will retain the repurchasing rule that was applicable at the end of 2019 which allows this product to remain in CDC’s inventory for a maximum of one (1) year from the date of production of each lot.
 
In addition, Plan B will be open for the 25 kilos butter format (up to a maximum of 1,500 tons). Companies requiring further information may contact Virginie Robert, Chief, Commercial Operations and Marketing at the CDC at (613) 222-8344.

As decided at a recent CMSMC meeting, the CDC re-established the Storage Assistance for Cheese Program. The Program Guide can be found here: Storage Assistance for Cheese January 2020.pdf

Food Processing Skills Canada (FPSC) is a not-for-profit workforce development and skills organization specifically focused on Canada's food and beverage manufacturing industries.
FPSC has launched its latest Labour Market Information survey, which will provide vital information on workforce and skills requirements in the food processing sector, including information specific to the dairy industry.
We encourage you to take a few minutes to complete the survey using the following links:

2020foodprocessorsurvey.ca (English); sondage2020destransformateursdesaliments.ca (French)

The results of the LMI survey will be helpful in your long-term human resources and workforce planning.

Foothills Creamery has been proudly making butter and ice cream products since 1969. Over its proud 50-year history, this Calgary-based family business has grown and evolved and has remained at the forefront of the latest and greatest flavours, new trends and changing demands among butter and dessert lovers of all ages. Foothills Creamery sources local cream, and proudly employs nearly 70 people...

The COVID-19 pandemic has forced the cancellation or postponement of events and gatherings throughout the world.  This is equally true of the Canadian dairy industry.  We had been planning to profile several upcoming events and professional development opportunities for our members but as of now all of these events have been postponed. Please stay tuned for updates.
 
IDF International Cheese Science & Technology Symposium – postponed until 2021

WDC 2020 Golf tournament – postponed
 
Alberta Pasteurizer Operator Licensing course – postponed until further notice

One of WDC’s key roles is to provide processor representation at industry forums and mandated advisory committees such as the Milk Industry Advisory Committee (MIAC) and the Specialty Production Advisory Committee (SPAC) in BC, the Dairy Advisory Committee (DAC) in Alberta and the Canadian Dairy Commission’s Processor Advisory Committee (PAC). These committees are an essential link between dairy processors and the various policymaking and regulatory authorities that govern processors’ businesses, providing opportunities to exchange information and resolve policy issues as they arise. In future editions of this newsletter, we’ll explain the work of these committees in greater detail.

One way to have greater input into industry affairs is to participate in Western Dairy Council’s Regional Advisory Committees. Did you know that there are three Regional Advisory Committees (RAC) within WDC? The British Columbia, Alberta and Manitoba/Saskatchewan RACs meet on an ongoing basis to bring forward the perspectives and concerns of member companies within their respective jurisdictions, and to provide the Board with provincial input into regional and national issues where appropriate.
 
If members have issues or topics they want to raise with the WDC Board, provincial Marketing Boards or the Western Milk Pool, they can go through their local RAC. To contact a specific RAC, email [email protected].

Contact our editor:
Sarah Cotton
Communications
Western Dairy Council
[email protected]