The Western Dairy Council and its members were shocked and dismayed by recently-released video footage showing disturbing incidents of animal abuse at a Fraser Valley dairy farm. Our members do not condone the mistreatment of animals at any farm under any circumstances and appreciated the swift action taken by the BC Milk Marketing Board (BCMMB) to suspend the farm’s license, pending investigation, upon learning of the incidents.
 
Since that time, we have been kept apprised of BCMMB’s investigation and the resulting Corrective Action Plan that it has set as a requirement to reintegrate the farm’s milk back into the supply. We understand that BCMMB’s decision to reinstate the farm’s license is conditional on the full implementation of the Corrective Action Plan. We expect that BCMMB will ensure that all provisions of the plan, including requirements for continuous external oversight and frequent, unannounced inspections, will be completely adhered to at all times. 

The 2021 Annual Meeting of the Western Dairy Council will be held on Thursday, July 22, 2021 from 9:00 am – 9:30 am (Pacific).  

​As required by the Canada Not-for-Profit Corporations Act, the meeting will transact the following business:

• Approval of Minutes from the Council’s 2020 Annual Meeting  
• Approval of Audited Financial Statements for the fiscal year ending March 31, 2021
• Appointment of Auditors for the current fiscal year 
• Election of Officers and Directors for current fiscal year
• Other Business

 
This year’s Annual Meeting will again be conducted by videoconference. WDC members seeking more information or wishing to confirm their attendance may do so by emailing info@westerndairycouncil.com.

June 29, 2021

​(OTTAWA, ON) – The Dairy Processors Association of Canada has joined others in Canada’s dairy sector to ask Federal, Provincial and Territorial (FPT) Ministers of Agriculture to implement mandatory and enforceable provincial Grocery Codes of Conduct, supported by a federal framework, to address current issues within Canada’s grocery retailer-supplier relationship. With a letter sent on June 28, the dairy sector joins numerous other farming and processing groups across the country in making this request.

This request comes as a Working Group established by FPT Ministers of Agriculture completes its report on the relationships between Canada’s retailers and suppliers. The work of the FPT Working Group was welcomed by farming and food processing groups that called for action on retailers’ use of arbitrary fees and deductions and lack of adherence to terms of contracts.

The dairy sector believes that the current environment whereby retailers hold significant market power has limited investment in Canada’s agri-food sector and instills a culture of distrust between retailers and suppliers, which ultimately hurts consumers. The signatories have asked the FPT Working Group to consider the positive impacts of mandatory codes, such as that of the United Kingdom, have had in reversing this trend. Thus, the sector believes that mandatory codes are the only way to restore fairness and balance in Canada’s food supply, for the benefit of the entire value chain, from farm to fork.

​Full letter: Letter – FPT Working Group (28-06-2021)

The New Normal
Heading into the fall, it appears as if the impacts of the COVID-19 pandemic will be with us for some time. Nevertheless, the dairy processing industry in western Canada continues to adapt and respond with increasing emphasis on business recovery. The Western Milk Pool marketing boards report that the supply situation is now at a “steady state” with only occasional skimming and no recent milk disposal. Processor orders are being fulfilled and some interprovincial milk movement is taking place to maintain stability of supply.
 
After experiencing a lot of volatility in the first few months, retail demand seems to have stabilized but the food service market is still slow to recover. In British Columbia, the Western Dairy Council joined the BC Dairy Association and the BC Restaurant and Food Service Association in asking the Minister of Agriculture to support joint marketing initiatives to boost local restaurant sales. What that support might look like is now up in the air following the Province’s decision to go to the polls on October 24. 
 
In response to the current situation, WDC members elevated health and safety protocols at their facilities throughout the summer. In August WDC surveyed its Board members and found near-universal face mask requirements and measures to facilitate social distancing at their plants. Most have contact tracing protocols and some have introduced temperature testing for employees and visitors.
 
Despite the long road ahead, the industry is taking a proactive approach to implementation of, and compliance with, the aforementioned protocols. We recognize the hard work that goes into providing fresh, nutritious food for our communities and we want to thank our members for being conscientious in protecting their employees, service providers and supply chain partners by enhancing safety measures and putting these protocols in place.

US Expresses Concerns in the First 60 Days of CUSMA
The Canada-US-Mexico Agreement (CUSMA) came into effect on July 1, 2020 and already the United States has started to voice concerns about its partners’ fidelity to the new trade agreement. On August 13, 114 members of the House of Representatives penned a letter to US Trade Representative Robert Lighthizer and Secretary of Agriculture Sonny Perdue urging swift use of the agreement’s consultation and enforcement measures to “ensur(e) faithful implementation of its provisions by our trading partners.” In particular, Canada’s administration of Tariff Rate Quotas (TRQs) and measures to eliminate Classes 6 and 7 were identified as elements of the agreement that demanded attention, as were Mexico’s commitments pertaining to commonly used cheese terms. On August 25, twenty-five US Senators signed a similar letter to the USTR and the Secretary of Agriculture. 

Provincial Milk Boards Consider Audit Cost-Sharing Options
Milk utilization audits are an essential part of the administration of the dairy industry’s supply management system. How the industry pays for milk utilization audits in each province has been deliberated for many years. Over the past year, discussions have taken place between the Western Dairy Council and Alberta Milk on ways of updating the province’s decades-old cost sharing agreement between producers and processors. And this summer, the BC Milk Marketing Board presented a proposal to share audit costs with processors in BC. The BC proposal can be viewed at www.westerndairycouncil.com/news. BCMMB has requested feedback from processors by October 23; comments can be submitted directly to the Board or through the Council at info@westerndairycouncil.com. 

WDC Annual Meeting
The Western Dairy Council held its third Annual Meeting on July 21, 2020 via videoconference. We are pleased to announce that the entire Board of Directors was returned including six directors who were re-elected to new two-year terms.

WDC 2020-2021 Board of Directors:
Gilles Froment, Lactalis Canada
Eric Given, Saputo Dairy Products Canada
Tony Gusikoski, Lactalis Canada
Ursula Klein, Agrifoods International Cooperative Ltd.
Claudine Martel, Agropur Coopérative
Russ Rimmer, Avalon Dairy
Christine Rohrbach, Gay Lea Foods Co-operative Limited
Cathy Sanders, Foothills Creamery Ltd.
Mike Szewczyk, Agropur Coopérative
Catherine Tokarz, Saputo Inc.
Phil Vanderpol, Vitalus Nutrition Inc.
Eric Wallman, Bothwell Cheese
 
In addition, the following individuals were named as Officers of the corporation:

• Tony Gusikoski (Chair)
• Phil Vanderpol (Vice-Chair)
• Eric Wallman (Treasurer)
• Dan Wong (President)

HTST/VAT Pasteurizer Operator Licensing Course
Registration for the HTST/VAT Pasteurizer Operator Licensing Course taking place October 20-23 is now full. The next session will be offered in the spring with more details to follow.

Recycling Regulations for Milk Containers
On June 29, the Government of British Columbia approved changes to its Recycling Regulation, which will see milk containers added to the province’s deposit/refund system effective February 1, 2022. In BC, most beverage containers in the deposit/refund system are managed by Encorp Pacific (Canada), an industry-owned stewardship agency operating under the Return-It brand. Encorp’s representatives met with WDC’s Board of Directors this month for consultation and, based on those discussions, it is expected that the two organizations will work together in the coming year on an implementation plan.
 
Recycling regulations are evolving across Canada. Quebec announced that milk containers will be brought into its deposit/refund system in 2022; Ontario is reforming its blue box program, and Alberta is in the early stages of developing its Extended Producer Responsibility initiative which is expected to include non-milk container dairy product packaging. 

 Concern Over Retail Fees
At the beginning of August, a joint statement by leading Canadian farm and consumer product associations was released to the media and the federal and provincial governments expressing deep concern over recent fees imposed by large retail chains on their suppliers.
 
Dairy processors lent their voices to the concerns through the national organization, Dairy Processors Association of Canada (DPAC), arguing that the arbitrary fees and penalties imposed by large grocery retailers negatively impact Canadian consumers by forcing Canadian farmers and food and beverage processors to lower investments in productivity and product innovation. Requiring food and beverage suppliers to offset the costs of retailers’ investments in their operations comes at the expense of farmers’ and processors' investments in their own Canadian facilities, therefore impacting Canada’s food security. With the statement,the associations have asked the federal and provincial governments to implement a code of practice to govern commercial practices between retailers and their suppliers, similar to codes that have been implemented in other countries. The full statement can be found at www.westerndairycouncil.com/news.

Member Profile: Vitalus Nutrition

Vitalus Nutrition is a leading Canadian supplier of specialty dairy-based ingredients for global food, beverage and nutraceutical industries. With deep roots in British Columbia and in the City of Abbotsford for many decades, the company has over 65 years in technical food processing expertise. 
Vitalus operates two plants, one in Abbotsford, British Columbia which produces milk protein concentrates and isolates, cream, and milk permeate. At this facility, milk permeate is transformed into GOS (galacto-oligosaccharides) under the brand name VITAGOS™. GOS is a dairy-derived prebiotic and is a critical ingredient in Infant Formula and other nutritional applications. Vitalus’ GOS plant is the only commercially operating plant in North America. 

In addition to the Abbotsford facility, the company has a joint venture in Winnipeg with fellow WDC member Gay Lea Foods Co-operative Limited. MDI is a state-of-the-art facility manufacturing butter and milk protein concentrates and isolates. 

Vitalus products are in high demand, and its milk protein isolate is integral in products such as Ensure, Atkins, and PepsiCo. Especially in current global pandemic circumstances, its products are used in medical applications by supporting critical Health Facilities such as hospitals, including ICU nutrient feeding products.

Making an impact in the communities that the company operates in is important to Vitalus. Locally, employees from both facilities actively volunteer with local charity groups. Recently, Vitalus employees have supported their respective community food banks by sorting and packing food boxes. 

​As the upcoming October holiday approaches, the team at Vitalus is thankful to be part of the Agriculture industry and grateful for the opportunities it affords them. 

Joint Statement by Farming and Processing Associations

(Ottawa) August 6th, 2020 - The latest round of fees introduced by large grocery retailers on their suppliers has attracted coverage in the news media over the past week (for examples, see here and here).  This is occurring at a time when farmers and food and beverage processors are already facing a complex web of arbitrary fees and penalties in their relationships with large grocery retailers, in addition to managing the on-going impact of Covid-19 on Canada’s food system. 
 
Arbitrary fees and penalties imposed by large grocery retailers on Canadian farmers and food and beverage processors negatively impact Canadian consumers as it results in lower investments and product innovation. Requiring food and beverage suppliers to cover the cost of investments in retail stores will come at the expense of the farmers’ and  processors' own investments in their Canadian facilities. What’s more, it will also reduce revenues for Canadian farmers. There is no scenario under which these arbitrary fees and penalties will benefit Canadians. On the contrary, they will ultimately impact Canada’s food security, as small and mid-sized farms and food processors already struggle to continue participating in this retail environment. 
 
An ever more concentrated and powerful retail sector versus a food production and processing sector that is being weakened to unsustainable levels was precisely what led the UK Government in 2009 to intervene and legislate against inappropriate practices through the introduction of a ‘Groceries Supply Code of Practice’.  
 
This is an issue of strategic importance for Canada's food security. We therefore call on the federal and provincial governments to implement a code of practice in Canadato check this arbitrary conduct from large grocery retailers, review all current fees, penalties, and after sale deductions, and to protect Canada’s agri-food sectors. Governments must heed the lessons of the successful UK experience in rebalancing competitive forces in the food sector. In the words of the U.K. Competition Commission 2008 final report on supplies of groceries:  “...we found that the transfer of excessive risk and unexpected costs by grocery retailers to their suppliers through various supply chain practices if unchecked will have an adverse effect on investment and innovation in the supply chain, and ultimately on consumers.”

                                                                                      -30-

Joint statement by Farming and Processing Associations: 
Canadian Federation of Agriculture
Canadian Beverage Association
Food and Consumer Products of Canada
Dairy Processors Association of Canada
Food and Beverage Canada
Canadian Horticultural Council
Baking Association of Canada

Managing our businesses in challenging times
​
It has been a time of evolving change since our last newsletter in April. In addition to the fallout from the COVID-19 pandemic, social unrest in North America and throughout the world has raised serious conversations about safety, job security, economic restructuring, physical and psychological wellbeing, and diversity and inclusion.

​In the last two months most dairy processors have settled into the ‘new normal’ and we want to acknowledge our members for responding quickly and thoroughly to the changing landscape. We would also like to express appreciation to the provincial milk boards keeping the milk supply flowing, and to our frontline workers for their hard work and dedication in keeping our communities safe, fed and healthy. 

News Release

 From: Agriculture and Agri-Food Canada 

June 12, 2020 (Ottawa, Ontario): COVID-19 has caused significant changes and adaptation in Canada’s food system. As a result, Canadian food producers, processors, and manufacturers have taken on unexpected and exceptional activities associated with risk mitigation measures to be able to maintain Canada’s food production. 

That is why the Government of Canada is taking steps to ensure the resilience of the food supply chain and to provide support to keep the agriculture sector strong. 

The Honourable Marie-Claude Bibeau, Minister of Agriculture and Agri-Food, today launched the $77.5 million Emergency Processing Fund (EPF) as part of the Government of Canada’s action to support Canadians and businesses facing hardship as a result of COVID-19. 

The program will prioritize projects based on two objectives: 

• Emergency COVID Response to assist companies to implement changes required by COVID-19 to ensure the health and safety of workers. This funding will assist with: plant retrofits or adjustments to existing operations to accommodate changes to processes and production; and increasing capacity for herd management. 
• Strategic Investments to assist companies to improve, automate, and modernize facilities needed to increase Canada’s food supply capacity. 

From: Consumers' Association of Canada

​May 24, 2020
​
The Consumers’ Association of Canada (CAC) is an official observer of our made in Canada supply management system that has served Canadian Consumers well during this difficult period. Says CAC President Bruce Cran, “We have been monitoring dairy prices and availability since the crisis started and I am pleased to say both have remained stable from coast to coast. Well done CDC and all the stakeholders who make our supply management system for dairy a success.” 

Allocation of CUSMA’s dairy TRQs: Viability of Canada’s dairy sector at stake 
 
May 27, 2020
 
Canada’s dairy processors, already hurt by lost business due to recent international trade agreements and COVID-19, are warning the federal government that the continued viability of the dairy sector is at stake if CUSMA dairy import licences (known as tariff rate quotas, or ‘TRQs’) are allocated to non dairy stakeholders. 
 
The federal government has promised to fully and fairly compensate dairy processors for their losses stemming from trade agreements, but so far no such compensation has been offered except for a relatively small program announced in 2016 in the context of the trade agreement with the Europe Union (EU). Dairy processors have been steadfast in advocating for a two-fold approach to mitigate these losses:

1. Allocation of dairy TRQs to Canadian dairy processors, and
2. Direct compensation to dairy processors.      

 
Dairy processing is carried out in every province by small, medium and large enterprises that provide valuable employment and economic benefits in the largely rural communities they serve. More than 10,000 farms rely on Canada’s 417 dairy processing plants to take their milk and process it into hundreds of nutritious staples, from milk, yogurt and ice cream to butter and award-winning cheeses. 
 
As the dairy sector is already reeling from the impact of COVID-19, allocating CUSMA’s TRQs to non-dairy stakeholders that have no vested interest in the dairy sector, as the federal government did in 2017 through the trade agreement with the EU, will only bring further disruptions to an already fragile domestic market. 
 
Unlike non dairy stakeholders, dairy processors have invested billions in the Canadian dairy industry in the last 10 years through expansion, plant upgrades, and products innovation. If the vast majority of CUSMA’s TRQs is allocated to dairy processors, it will:

• Ensure stability in the Canadian dairy market,
• Introduce a variety of competitively priced imported products that complement, rather than compete with ‘Made with Canadian milk’ goods. 

 
The unexpected early implementation of CUSMA on July 1st, meanwhile, will prove unnecessarily disruptive to the Canadian dairy sector. As the dairy processing industry cautiously looks forward to the country’s economic recovery from COVID-19, now is not the time to further disrupt Canada’s supply-managed dairy marketplace by giving a share of CUSMA-related TRQs to stakeholders that have no vested interest in value creation in the dairy sector.
 
The future of Canadian dairy farmers and processors is intricately tied to the success of the Canadian dairy sector as a whole -- from farm to table. And, Canadian dairy processors need the vast majority of CUSMA’s dairy TRQs to help it remain viable and meet the enormous challenges that lie ahead.
 

DÉCLARATION DES QUATRE ASSOCIATIONS DE TRANSFORMATEURS LAITIERS SUR LA COMPENSATION AU SECTEUR LAITIER
 
Répartition des contingents tarifaires laitiers de l’ACÉUM: la viabilité du secteur laitier canadien en jeu
 
Le 27 mai 2020
 
Les transformateurs laitiers du Canada, déjà touchés par la perte de marché en raison des récents accords commerciaux internationaux et de la COVID-19, avertissent le gouvernement fédéral que la viabilité du secteur laitier est en jeu si les licences d'importation laitiers (connues sous le nom de contingents tarifaires ou «CT») de l’Accord Canada–États-Unis–Mexique (ACEUM), sont attribuées à des acteurs non laitiers.
 
Le gouvernement fédéral a promis d'indemniser pleinement et équitablement les transformateurs laitiers pour leurs pertes résultant des accords commerciaux, mais jusqu'à présent, aucune compensation n'a été offerte à l’exception d’un programme de faible envergure annoncé en 2016 dans le contexte de l’entente commerciale avec l’Union européenne (UE). Les transformateurs laitiers n’ont cessé de plaider en faveur d'une approche en deux volets pour atténuer ces pertes:

1. Attribution des contingents tarifaires laitiers aux transformateurs laitiers canadiens, et
2. Une indemnisation directe des transformateurs laitiers.

 
La transformation laitière est effectuée dans chaque province par des petites, moyennes et grandes entreprises, qui procurent de précieux emplois et d’importantes retombées économiques dans les collectivités en grande partie rurales qu'elles desservent. Plus de 10 000 fermes comptent sur les 417 usines de transformation laitière du Canada pour l’achat du lait cru et sa transformation en                         centaines d'aliments nutritifs de base tels que du lait de consommation, du yogourt, de crème glacée, du beurre et des fromages de grande renommée.
 
Comme le secteur laitier est déjà sous le choc de l'impact de la COVID-19, l'attribution des contingents tarifaires de l’ACÉUM à des acteurs non laitiers qui n'ont pas d’intérêt direct dans le secteur laitier, tout comme le gouvernement fédéral l'a fait en 2017 avec l'accord commercial avec l'UE, ne fera que perturber davantage un marché intérieur déjà fragile.
 
Contrairement aux intervenants non laitiers, les transformateurs laitiers ont investi des milliards de dollars dans l'industrie laitière canadienne au cours des dix dernières années sous forme d'expansion, de modernisation des usines et de nouveaux produits novateurs. Si la très grande majorité des contingents tarifaires de l’ACÉUM leur est allouée, les transformateurs laitiers pourront :
●      Assurer la stabilité du marché laitier canadien,
●  Introduire une variété de produits importés à des prix compétitifs qui complètent, plutôt que remplacent, les produits fabriqués à partir de lait canadien.
 
La mise en œuvre inattendue de l’ACÉUM dès le 1er juillet perturbera de façon significative le secteur laitier canadien. Alors que l'industrie de la transformation laitière envisage avec prudence une reprise économique du pays après la COVID-19, le moment n'est certainement pas venu de créer encore davantage de turbulence dans le marché laitier canadien soumis à la gestion de l'offre en accordant une part des contingents tarifaires de l'ACÉUM aux intervenants qui n'ont aucun intérêt à la création de valeur dans le secteur laitier.
 
L'avenir des producteurs et des transformateurs laitiers canadiens est intimement lié au succès du secteur laitier canadien dans son ensemble, de la ferme à la table. Les transformateurs laitiers canadiens ont besoin de la très grande majorité des contingents tarifaires laitiers de l’ACÉUM pour les aider à demeurer viable et relever les énormes défis qui pointent à l’horizon.