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From: The National Farm Animal Care Council and Dairy Farmers of Canada
News Release (Lacombe, AB) 30 March 2023 – The National Farm Animal Care Council (NFACC) and Dairy Farmers of Canada (DFC) are pleased to announce the release of the updated Code of Practice for the Care and Handling of Dairy Cattle. The updated Code is now available at www.nfacc.ca/codes-of-practice/dairy-cattle. It replaces its predecessor, developed in 2009, effective April 1, 2024 (unless indicated otherwise in Requirements with a later phase-in date). The 2009 dairy cattle Code will remain in effect until March 31, 2024. "Canadian dairy farmers already follow some of the most stringent standards in the world, and the new Code of Practice will help them continue to provide the best in animal care while staying consistent with our industry's history of continuous improvement," says Pierre Lampron, President of DFC. "This commitment to quality and care means dairy farmers are always looking to stay ahead of the curve and improve their practices, reflecting the most recent science on the welfare of their animals." A What We Heard and How We Addressed It report from the Code Development Committee is also available here. The report summarizes how input from the public comment period, and from a 2019 top-of-mind survey, was considered in finalizing the Code. Committee members thank everyone who contributed their feedback, which led to several improvements in the final Code. While not all concerns could be addressed, the Code Development Committee worked hard to balance producer achievability, available research, and stakeholder viewpoints in the Code’s development. “The new Code provides important updated standards for the welfare of dairy cattle in Canada,” said Dr. Jeffrey Rushen, Humane Canada representative on the dairy cattle Code Development Committee. “The requirements and recommendations are science-informed and will evolve the welfare practices of dairy farmers to better meet the needs of their animals.” “Canadian dairy farmers care about protecting the health and welfare of their farm animals. This updated Code of Practice will help them continue to enhance the care and handling of animals while boosting consumer confidence that our food system is meeting the highest standards,” said the Honourable Marie-Claude Bibeau, Minister of Agriculture and Agri-Food. Canada’s Codes of Practice provide critical guidance for the care and handling of farm animals. They serve as the foundation for ensuring that farm animals are cared for using sound management and welfare practices that promote animal health and well-being. Codes are used as educational tools, reference materials for regulations, and the foundation for industry animal care assessment programs. NFACC’s Code development process is a unique consensus-based, multi-stakeholder approach that ensures credibility and transparency through scientific rigour, stakeholder collaboration, and consistency. The development of the Dairy Cattle Code was led by an 18-person Code committee that includes participants from across Canada including dairy farmers, animal welfare and enforcement representatives, processors, researchers, veterinarians, and government representatives. Aiding in their work was a five-person Scientific Committee that included animal science and veterinary expertise in dairy cattle behaviour, health, and welfare. A public comment period was held from November 29, 2021 – January 27, 2022 to allow the public and all stakeholders to provide input. Canada’s Codes of Practice are a powerful tool for meeting rising consumer, marketplace and societal expectations relative to farmed animal welfare. Codes support responsible animal care practices and keep everyone involved in farmed animal care and handling on the same page. The Dairy Cattle Code was the first Code of Practice to be updated through NFACC’s Code process in 2009 and has now undergone its second update utilizing this process. For more information on the Codes of Practice and NFACC’s Code development process visit www.nfacc.ca. The project was funded in part by the Government of Canada under the Canadian Agricultural Partnership’s AgriAssurance Program. About the National Farm Animal Care Council (NFACC) NFACC is a collaborative partnership of diverse stakeholders created in 2005 to share information and work together on farm animal care and welfare. It is the national lead for farm animal care issues in Canada and operates as a Division of Animal Health Canada. For more information on NFACC, visit www.nfacc.ca. About Dairy Farmers of Canada (DFC) 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. Dairy farmers have set a goal of net-zero emissions from farm-level dairy production by 2050. For more information, visit www.dairyfarmers.ca.
From: Agriculture and Agri-Food Canada
News release Ascot Corner, Quebec, November 14, 2022–Agriculture and Agri-Food Canada On a dairy farm in the Eastern Townships, Agriculture and Agri-Food Minister Marie-Claude Bibeau re-affirmed the Government’s commitment to provide compensation for supply-managed sectors for the impacts of the Canada-United States-Mexico Agreement (CUSMA). Dairy, poultry and egg producers and processors are expected to share more than $1.7 billion in direct payments and investment programs. This federal investment will help dairy, poultry and egg producers and processors make key investments and improve their operations to be even more competitive and sustainable. While dairy producers already know how much they will receive next year under the fourth compensation payment for the Canada-European Union Comprehensive Economic and Trade Agreement (CETA) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) the Government intends to offer them extra funding of up to $1.2 billion over six years under the Dairy Direct Payment Program to account for the impacts of CUSMA. From 2024 to 2029, the owner of a farm with 80 milking cows may receive compensation through a direct payment of about $106,000 in six yearly instalments on a declining scale. These funds will give producers the flexibility to invest according to their individual needs. Starting in 2023, the Government intends to invest up to $300 million in a new program to support innovation and investment into large-scale projects to add value to solids-non-fat, a by-product of milk processing. The Government will consult closely with industry stakeholders in the development of program parameters. For the Canadian poultry and egg producers, the Government intends to provide up to an additional $112 million under the Poultry and Egg On-Farm Investment Program. Producers will receive payments based on their quota holdings, to support improvements to their farm businesses. This funding will bring the total compensation for this sector to $803 million. Finally, the federal Government intends to invest up to $105 million in the Supply Management Processing Investment Fund to support investments in dairy, poultry and egg processing plants, to grow their productivity or efficiency through new equipment and automation technologies. This brings the total investment for processors up to $497.5 million. These programs will help drive innovation and growth in the supply-managed sectors. With this announcement, the Government of Canada delivers on its commitment to fully and fairly compensate producers and processors who have lost market share under CETA, CPTPP and CUSMA. The total compensation will reach up to $4.8 billion. Quotes “Promise made, promise kept. We made a commitment to fully and fairly compensate the market losses suffered by dairy, poultry and egg producers and processors, and that is what we have done. I would like to reiterate our government’s commitment not to concede any further market shares under supply management during future trade negotiations.” - The Honourable Marie-Claude Bibeau, Minister of Agriculture and Agri-Food “The government made a promise to compensate producers for the losses caused by the CUSMA agreement. Today, they can say they fulfilled their promise. We can now look towards the future.” - Pierre Lampron, Chair, Dairy Farmers of Canada “Canada’s 2,800 chicken farmers are proud stewards of our land, providing high-quality, sustainable, nutritious food for Canadians. Today’s further investment in our sector will help farmers enhance the long-term efficiency and sustainability of their farms and continue to feed Canadians.” - Tim Klompmaker, Chair, Chicken Farmers of Canada “Our farmers are proud to offer Canadians high-quality eggs of local production and support rural jobs and our economy. The measures outlined in today’s announcement provides a tool to navigate the impact of CUSMA on our sector, and benefits all Canadians as egg farmers continue to embrace green tech, make enhancements to their farm operations, and grow their sector. Canada’s more than 1,200 egg farmers are committed to upholding our strong, domestic food system—today and into the future.” - Roger Pelissero, Chair, Egg Farmers of Canada “Hatching egg producers across the country have experienced losses due to recent trade agreements but we are pleased to see that the Fall Economic Statement has addressed an ongoing commitment to Canadian poultry and egg farmers on programming to offset the impact of the CUSMA agreement. This funding will help our producers reinvest to make our sector stronger and more resilient which benefits all Canadians.” - Brian Bilkes, Chair, Canadian Hatching Egg Producers “We appreciate today’s announcement which will greatly assist the Canadian turkey industry by offsetting market losses under the CUSMA agreement and builds on the Government’s previous work for our sector due to CPTPP. Combined, these investments will allow turkey farmers to strengthen on-farm sustainability, improve and modernize their operations, and help them continue to provide turkey to Canadians that is safe, and produced in an efficient and responsible way. We thank the Government for following through on its commitment.” - Darren Ference, Chair, Turkey Farmers of Canada “Dairy processors across Canada welcome the compensation measures announced today as it reaffirms the Government’s commitment to supporting the dairy sector in addressing the impacts of international trade agreements. The funding announced for dairy processors, including a new innovation program and additional funding for the existing ‘Supply Management Processing Fund’, will increase productivity and efficiency through investments in new automated equipment and technology to meet consumer demand in an ever-changing marketplace.” - Michael Barrett, Chair, Dairy Processors Association of Canada "With this injection of new funds in the Supply Management Processing Investment Fund, poultry and egg processors will have access to additional funding to leverage private investments in new equipment and technology. This will help poultry and egg processors improve their productivity and efficiency as a response to the additional market access granted in recent trade agreements." - Ian McFall, Chair, Canadian Poultry and Egg Processors Council Quick facts
From: Alberta Agriculture and Irrigation
Subject: Pasteurizer Operator License Issuance Policy Change Effective November 9, 2022, Agriculture and Irrigation (AGI) will no longer offer the in-person Pasteurizer Operator Licensing Course at the Food Processing Development Centre (FPDC) in Leduc, Alberta. Effective November 9, 2022, AGI’s Food Safety Branch (FSB) will maintain a list of on-line courses offered by third party organizations that will serve to support the legislative requirement for licensing of Alberta pasteurizer operators. Upon successful completion of a listed course and its associated exam/test, participants will be issued a pasteurizer operator license from the Meat and Dairy Inspection Section of FSB. The intent of this policy change is to enable flexibility from a scheduling perspective for the Alberta dairy industry to meet the legislation as well as to reduce the overall resources industry expends to license pasteurizer operators (e.g., time for current FPDC course, travel costs etc.). Several on-line options are included on the enclosed AGI course list. Upon completion of a listed course and exam/test, please notify AGI’s Meat and Dairy Inspection Section via e-mail at AF.FoodSafety@gov.ab.ca including confirmation of course exam/test completion for license issuance. If you have questions regarding this policy change, please e-mail AF.FoodSafety@gov.ab.ca. Pasteurizer Operator Licensing - Course List Cornell College of Agriculture and Life Sciences (CALS) High Temperature Short Time (HTST) Pasteurizer Workshop https://cals.cornell.edu/education/degrees-programs/high-temperature-short-time-htst-pasteurizer-workshop This course is only suitable for Alberta pasteurizer operators that require an HTST pasteurizer operator license. Cornell College of Agriculture and Life Sciences (CALS) Vat (batch) Pasteurizer Workshop https://cals.cornell.edu/education/degrees-programs/vat-pasteurizer-workshop This course is only suitable for Alberta pasteurizer operators that require a vat (batch) pasteurizer operator license. DWC FoodTech (Australia, Melbourne) Principles of Food Safety in Dairy Pasteurization https://dwcfoodtech.com.au/training-solutions/principles-of-food-safety-in-dairy-pasteurisation/ This course covers both vat (batch) and HTST pasteurization so is suitable for Alberta pasteurizer operators that require one or both types of licenses. Food Safe (New Zealand) Global Pasteurizer Operator Training - Basic (one day course) https://www.foodsafe.net.nz/food-safety-courses/heat-treatment-training-course/ This course is only suitable for Alberta pasteurizer operators that require a vat (batch) pasteurizer operator license. Food Safe (New Zealand) Global Pasteurizer Operator Training - Advanced (two day course) https://www.foodsafe.net.nz/food-safety-courses/heat-treatment-training-course/ This course covers both vat (batch) and HTST pasteurization so is suitable for Alberta pasteurizer operators that require one or both types of licenses. BCIT - School Of Health Sciences (British Columbia) FOOD 1151 - Dairy Processing https://www.bcit.ca/study/courses/food1151 This course covers both vat (batch) and HTST pasteurization so is suitable for Alberta pasteurizer operators that require one or both types of licenses. From: The Canadian Dairy Commission
OTTAWA, November 1, 2022 In October 2022, the Canadian Dairy Commission (CDC) conducted the annual review of Canadian farm gate milk prices. As a result of the review and consultations with stakeholders, the CDC intends to implement the following change on February 1, 2023. The farm gate milk price will increase by 2.2% which translates to $0.0174/litre (less than 2 cents per litre). This increase is the result of the National Pricing Formula, a pricing mechanism that was determined by the industry. It takes into account dairy farmers’ costs of production as well as the consumer price index. As indicated last June, the increase of the price of milk at the farm level that took place on September 1st, 2022 was subtracted from the result of the pricing formula. In the last year, producers faced increases in feed costs, fertilizer costs, fuel costs, and interest rates. Disruptions to supply chains continue to put upward pressure on input costs. However, investment and productivity gains at the farm offset some of these increases. The cost of milk used to make dairy products such as milk, cream, yogurt, cheese and butter for the retail and restaurant sectors will increase by an average of 2.2%. The net impact on consumers will also be influenced by factors such as transportation, distribution and packaging costs throughout the supply chain. The price paid to farmers is only part of the price paid by consumers. In the last year, the average annual consumer price index for dairy products increased at a comparable rate (6.0%) to all food products (6.3%). In the last five years, the average annual consumer price index for dairy increased by 12%. This compares to 21% for meat, 27% for eggs, and 15% for fish. The CDC is grateful to the following stakeholders for their contribution to the annual milk pricing process: Dairy Farmers of Canada, Dairy Processors Association of Canada, Consumers' Association of Canada, Retail Council of Canada, Canadian Federation of Independent Grocers and Restaurants Canada. The new farm milk prices will become official once they are approved by provincial authorities later in 2022. For more information, please contact: Shana Allen Chief, Communications and Strategic Planning Tel.: 613-302-7575 Email: Shana.Allen@cdc-ccl.gc.ca Government of Canada launches consultations to inform the National Agricultural Labour Strategy6/28/2022
From: Agriculture and Agri-Food Canada
June 27, 2022 – Blainville, Quebec Canada's agriculture and agri-food sector is an important engine of economic growth that feeds millions of people in Canada and around the world. It is also part of the country's critical infrastructure, essential to the health and well-being of all Canadians. Today, the Minister of Agriculture and Agri- Food, the Honourable Marie-Claude Bibeau, launched consultations to solicit input and inform a National Agricultural Labour Strategy. The agriculture and agri-food sector faces obstacles that distinguish it from other economic sectors currently facing labour shortages. As part of the engagement process, an online consultation will open on June 27, 2022 and run until September 28, 2022. This process will seek input on recommendations to address chronic workforce challenges to build short- and long-term solutions that enable the agriculture sector to attract a skilled workforce. Provinces and territories, as well as employers, unions, underrepresented groups, workers, and other key groups will be engaged to develop the strategy and ensure it reflects the unique needs of the sector. A number of areas of focus have been identified, including the use of automation and technology, targeted skills development and training, employment incentives and best practices, improved working conditions and benefits; and programs to recruit and retain workers. The sector is already demonstrating leadership in tackling these challenges, through initiatives such as the Canadian Agriculture Human Resource Council-led development of a National Workforce Strategic Plan for Agriculture and Food and Beverage Manufacturing. The Government of Canada's National Agricultural Labour Strategy is intended to complement these efforts and utilize input directly from industry to achieve solutions. The Government of Canada is committed to taking concrete action in addressing the ongoing labour challenges facing the country's agriculture and agri-food sector and to best position the sector for future growth. Quotes "As everyone is looking to Canada to increase its contribution to global food security, our agriculture and agri-food sector is facing a severe labour shortage that prevents it from reaching its full potential. I encourage all stakeholders to take part in these consultations, through which our government wishes to foster the significant engagement of the industry and ensure that together we put in place effective and sustainable solutions." - The Honourable Marie-Claude Bibeau, Minister of Agriculture and Agri-Food "A skilled and reliable labour force is an important part of our resilience as a sector. We have already seen, and will continue to build off, the strong leadership in this space. The strategy will help to ensure that Canada continues to deliver the high quality of food needed in our country and around the world." - Francis Drouin, Parliamentary Secretary to the Minister of Agriculture and Agri-Food and Member of Parliament for Glengarry–Prescott–Russell "Canada's agricultural sector feeds millions of people each year, and is a huge driver of our national economy. To ensure it can continue to grow and innovate, we're working with industry partners to build the strong, skilled workforce they need to thrive." - The Honourable Carla Qualtrough, Minister of Employment, Workforce Development and Disability Inclusion "We at CFA are excited for the launch of these consultations, as they will be coordinating closely with the CAHRC National Agriculture, Food and Beverage Manufacturing Workforce strategy co-chaired by CFA and Food and Beverage Canada. These consultations, along with the development of our Workforce Strategy will create pragmatic solutions for short and long-term labour issues in the food supply chain." - Mary Robinson, President of Canadian Federation of Agriculture "CAHRC is pleased for the launch of these timely consultations on a sector-specific Agricultural Labour Strategy. We look forward to working closely and collaboratively with AAFC and our partners CFA and Food and Beverage Canada on our complimentary initiatives that will go a long way towards finding long-term solutions for a robust, skilled workforce." - Paul Glenn, Chair, Canadian Agricultural Human Resource Council "Food and Beverage Canada welcomes the launch today of consultations to develop a sector-specific labour strategy to address labour shortages in food and beverage manufacturing, as well as in agricutlure. With our partners at CAHRC and CFA, we look forward to continuing our work on the National Workforce Strategic Plan for Agriculture and Food and Beverage Manufacturing, which will help to inform these important consultations as we seek to develop a roadmap to address persistent labour shortages in the agri-food sector". - Kathleen Sullivan, CEO, Food and Beverage Canada Quick Facts
Contacts Marianne Dandurand Press Secretary Office of the Minister of Agriculture and Agri-Food marianne.dandurand@agr.gc.ca 343-541-9229 Media Relations Agriculture and Agri-Food Canada Ottawa, Ontario 1-866-345-7972 aafc.mediarelations-relationsmedias.aac@agr.gc.ca Canadian Dairy Commission
OTTAWA, June 21, 2022 On May 27, 2022, Dairy Farmers of Canada asked the Canadian Dairy Commission (CDC) to review the price that farmers get for their milk due to the current inflation. An important part of the CDC’s mandate is to provide efficient dairy farmers with the opportunity to obtain a fair return for their labour and investment. The CDC therefore agreed to review the request to determine if a price increase was warranted before next year. After reviewing the points of view expressed during the consultations as well as economic data, the CDC recommends that on September 1, 2022, the farm gate milk price increase by $1.92/hl (less than 2 cents per litre). The increase in producers’ revenues will partially offset increased production costs due to inflation. Feed, energy, and fertilizer costs have been particularly impacted, with increases of 22%, 55% and 45% respectively since August 2021. Next fall, during the regular price review, the September 1 adjustment will be deducted from any adjustment for February 1, 2023. In making its decision, the CDC considered possible impacts of a price increase on consumers and demand. Nutritious dairy products must remain affordable for Canadian families. Furthermore, dairy farmer revenue has improved in recent months, partly due to last February’s price increase and partly due to the rise in world prices, which affects a significant part of the milk that farmers sell on the domestic market. The adjustment will increase by 2.5% on average the price for milk used in the manufacture of dairy products such as milk, cream, yogurt, cheese and butter intended for the retail sector and the foodservice industry. This increase will be reflected in the milk class prices according to a ratio of 60% on butterfat and 40% on other milk components. The net impact on consumers will also be influenced by factors such as transportation, distribution and packaging costs throughout the supply chain. The price paid to farmers is only part of the price paid by consumers. In the last five years, the consumer price index for dairy increased by 7.7%. This compares to 14% for meat, 21% for eggs, and 32% for fish. The CDC is grateful to the following stakeholders for presenting their views on a potential increase and the impacts a price adjustment would have on their sector: Dairy Farmers of Canada, Dairy Processors Association of Canada, Consumers’ Association of Canada, Retail Council of Canada, Canadian Federation of Independent Grocers and Restaurants Canada. The new farm milk prices will become official once they are approved by provincial authorities in mid-July 2022. For more information, please contact: Chantal Paul Director, Corporate Services Tel.: 613-790-0929 Email: Chantal.Paul@cdc-ccl.gc.ca Web site: www.cdc-ccl.gc.ca  The British Columbia Milk Marketing Board, under federal and provincial law, promotes, controls and regulates the production, transportation, packing, storing and marketing of milk, fluid milk and manufactured milk products in British Columbia. A Board Member is to be appointed by MIAC with a three-year term effective November 2022. (Reference: BCMMB Election and Appointment Rules and Procedures, July 9, 2021) Board duties include the analysis and interpretation of detailed statistics in relation to production, product quality, consumption patterns, and industry economic impacts, and direct involvement in regional, national and international policies. The person appointed will have strong skills in communication, complex analysis and decision-making. Good background knowledge of the dairy industry and supply management will be important. Board members are required to relate well to and have the confidence of producers, processors, suppliers, Board staff and other stakeholders. This part-time position is suitable for an individual who can commit to Board and other meetings, likely or approximating three to five days a month, and who can undertake some travel. This Board Member cannot be a licensed producer. The BC Milk Industry Advisory Committee invites applications from qualified individuals who are keen to make an active contribution to the Dairy industry. If you feel qualified and the opportunity is of interest, to apply for an interview please send your resume in confidence by September 30, 2022: Via email to: miac@bcmilk.com Minister Bibeau launches a new support program for processors of Canada’s supply-managed commodities3/10/2022
From: Agriculture and Agri-Food Canada
News release March 9, 2022 – Ottawa, Ontario – Agriculture and Agri-Food Canada Canada’s supply management system is a model of stability which provides a fair price for farmers, stability for processors, and safe, high quality products for Canadians. This system ensures the viability of family farms and is the backbone of rural communities across the country. Today, the Minister of Agriculture and Agri-Food, the Honourable Marie-Claude Bibeau, along with Francis Drouin, Parliamentary Secretary to the Minister of Agriculture and Agri-Food, announced the launch of the Supply Management Processing Investment Fund, worth $292.5 million, to help processors of supply-managed commodities increase their competitiveness and resilience in the face of evolving markets. The Supply Management Processing Investment Fund is part of the Government of Canada’s commitment to support processors in these sectors to address the impacts of international trade agreements. Through this program, processors of supply-managed commodities will have access to funding to improve their productivity and efficiency through investments in new automated equipment and technology. The Fund leverages private investment in processing plants to accelerate adoption of automation to lower processing costs, address labour shortages and enhance product quality. Launching today, the two-step application process includes first submitting a Project Summary Form, which will help to determine a project’s eligibility and alignment with program criteria and priorities. Those successful at this stage will be invited to submit a full application. Work is underway with supply-managed sectors to determine full and fair compensation for the impacts of the Canada-United States-Mexico Agreement within the year. By providing processors the support needed, the Government of Canada is ensuring Canadian family farms thrive and remain well positioned for the future. Quotes “Our government strongly supports supply-managed sectors and, as promised, we are rolling out various programs to compensate producers and processors who have lost market share further to trade agreements. Today, we are announcing the terms of support for dairy, poultry and egg processors to promote investment in their operations and thereby improve their competitiveness and resilience.” - The Honourable Marie-Claude Bibeau, Minister of Agriculture and Agri-Food “Canada’s supply-managed dairy, poultry and egg farmers are part of the backbone of rural regions from across Canada. With the launch of the Supply Management Processing Investment Fund, the Government of Canada is providing critical investments to accelerate the adoption of new automated equipment and technology for processors to improve their productivity and efficiency, and in turn increase their competitiveness and resilience.” - Francis Drouin, Parliamentary Secretary to the Minister of Agriculture and Agri-Food “Dairy processors welcome the announcement of the Supply Management Processing Investment Fund, which will support the additional investments and innovations necessary for Canada's dairy processing sector to transition to new market realities resulting from additional market access concessions granted in trade agreements with Europe and Trans-Pacific countries. By supporting investments in processing plants, the Fund will help boost the competitiveness, productivity and long-term sustainability of the Canadian dairy industry.” - Michael Barrett, Chair, Dairy Processors Association of Canada “We are pleased to see the government fulfill its commitment to support additional investments in poultry and egg processing plants as a means to mitigate the impact of market access concessions made in CPTPP. The Fund will leverage private investments in processing plants to boost productivity, respond to changing customer expectations and improve our industry’s efficiency, viability and competitiveness.” - Ian McFall, Chair, Canadian Poultry and Egg Processors Council Quick facts
Dan Wong
President, Western Dairy Council These are trying times. That might be the biggest understatement of the past two years as the dairy industry in western Canada -- like all sectors of the economy -- wrestles with a host of unprecedented challenges ranging from drought to floods, to supply interruptions to, most recently, the effects of the Omicron variant of COVID-19. The cumulative effect of these challenges has been to create unprecedented disruptions throughout supply chains for many consumer goods. It’s not the way any of us had hoped to start the New Year. Recently, we’ve heard reports of dairy product shortages and “out-of-stocks” at some grocery stores, not just in British Columbia or western Canada, but across the entire country. This is an obvious source of concern as everyone involved in the Canadian dairy industry -- including farmers, their input suppliers, transporters, processors, service providers, distributors and grocery stores -- is dedicated to ensuring that consumers have ready access to the dairy products they want and need, all the time. When we hear about empty store shelves, the natural reaction is to ask, “where’s the bottleneck?” The answer is that depending upon the product, the geographic location and the specific circumstances in a given day or week, it can be anywhere, or in several places, throughout the supply chain. Equipment and supplies are held up at ports. Truck transport is slowed by a shortage of drivers and, as we’ve seen in BC over the past two months, by highways that have been battered and destroyed by once-in-a-lifetime floods. Even more recently, we’ve seen the Omicron variant take a toll on all segments of the supply chain. The impact of Omicron can’t be underestimated. Food & Beverage Canada recently reported that food processors are experiencing about 30% absenteeism, presumably reflecting the pervasiveness of Omicron. Earlier in January, the Retail Council of Canada reported absenteeism of up to 20% at retail stores, including grocery stores. In addition, there are reports that restaurants have had to curtail their hours of operation because of staff shortages owing to COVID-19. And yet, it’s not just Omicron, but the accumulation of all these factors that has caused disruptions in the supply chain. Producers have faced feed shortages as a result of severe weather and transportation challenges. Processors have experienced slowdowns in the delivery of packaging and other supplies. Transport companies, faced with shortages of qualified drivers and vehicles, a situation that pre-dated the pandemic, are now faced with longer hauling times as a result of traffic restrictions on damaged highways. In addition, grocery retailers, on the receiving end of these accumulated delays, are not immune to staff shortages related to the Omicron variant and may take a bit longer to get shelves re-stocked. WDC’s members have also felt the impact of these disruptions. COVID-19-related absenteeism has affected us too, as have delays in the delivery of supplies and, at the peak of the flood catastrophe in BC’s Fraser Valley, regional access to the milk supply. Yet the prevailing feedback from our members is that, while operations and distribution may be affected in certain cases, they are still getting products to market. Aside from the occasional weather delay (it being January), the dairy processing sector in western Canada is functioning well and customer orders are being filled. Of course, none of this would be possible without the exceptional efforts put forward by the dairy farmers and staff at the Milk Marketing Boards who have worked tirelessly to keep milk flowing (even in British Columbia, where production has been restored after one of the most incredible environmental disasters in the province’s history). Despite the challenges, all segments of the dairy supply chain are doing everything they can, in unprecedented circumstances, to ensure that high quality dairy products are available to consumers in all regions of the country. We are not alone in this. Other agri-food sectors are also managing supply chain disruptions, as are industries as diverse as automobiles, electronics and building supplies. Some economists expect supply chain issues to persist for the remainder of the year. It will be a challenge, but we can expect the dairy industry to come through, as it always has. On January 4, 2022 the CUSMA Dispute Settlement Panel published its report on Canada’s administration of its dairy tariff rate quota (TRQ). At the centre of the dispute is how Canada has allocated its TRQs – the quantities of dairy products such as milks, cheeses, powders, yogurt and ice cream that can be imported at lower duty levels under the terms of CUSMA.
The report finds on the one hand that "Canada’s practice of reserving TRQ pools exclusively for the use of processors is inconsistent with Canada’s commitment in Article 3.A.2.11(b) of the Treaty not to “limit access to an allocation to processors.” On the other hand, the report finds that “nothing in the panel’s ruling constrains Canada’s discretion to administer its TRQ however it wants, within the treaty’s set limits. Quite the contrary – Canada has significant discretion in designing and implementing its allocation mechanisms.” And further, “The Panel agrees with Canada that the design of an allocation mechanism, including who may obtain an allocation, is left up to the discretion of the importing Party, in this case Canada, to determine, subject to consistency with the other provisions of the Agreement.” Reaction to the decision has been mixed, with both countries claiming victory. U.S. Trade Representative Katherine Tai proclaimed that “This historic win will help eliminate unjustified trade restrictions on American dairy products, and will ensure that the U.S. dairy industry and its workers get the full benefit of the USMCA (as it is known in the United States) to market and sell U.S. products to Canadian consumers.” For Canada’s part, International Trade Minister Mary Ng and Agriculture and Agri-food Minister Marie-Claude Bibeau declared that “We are pleased with the dispute settlement panel’s report, which ruled overwhelmingly in favour of Canada and its dairy industry. In particular, it is important to note that the panel expressly recognizes the legitimacy of Canada’s supply management system. The panel also confirms that Canada has the discretion to manage its TRQ allocation policies under CUSMA in a manner that supports Canada’s supply management system.” Canada now has until February 3 to propose the measures it will take to comply with the CUSMA panel’s decision. The federal government has indicated that it will work with the industry to ensure that its TRQ allocation mechanism satisfies the panel’s decision. The final panel report is available here. |
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