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“The Canadians have a system where they can only produce what they can sell,” she said. “If you produce more milk than you can sell profitably, they don’t pay a
by beloch 7y ago
“The Canadians have a system where they can only produce what they can sell,” she said. “If you produce more milk than you can sell profitably, they don’t pay as much for it.”
One thing this article leaves out is the massive subsidies that dairy producers receive in many nations, especially the U.S.. Even as demand has sank in the U.S., production has steadily increased, and the federal government has had to throw its weight around to force U.S. milk down the throats of other countries. Despite it's supply management system, Canada is now a consumer of U.S. dairy. This is because Trump made that a condition of lifting tariffs and negotiating NAFTA 2.0..
Because of supply management, dairy products in Canada are significantly more expensive than they are in the U.S.. Yes, it's not consumer friendly, but it does let dairy farmers do fairly well and maintain good quality of their product. In the U.S., the government effectively pays for a large percentage of every glass of milk consumers drink. When that milk is, instead, exported to Canada, additional export subsidies are applied that earn farmers even more money than they do on milk sold domestically. Then the Canadian government slaps tariffs of several hundred percent on this massively subsidized dairy to bring it inline with Canadian dairy products (which are controlled but not subsidized). Amazingly, it still often winds up cheaper than most Canadian dairy when it hits Canadian supermarket shelves.
The end result is that American taxpayers are paying Canadians (and their government) to drink U.S. milk, just so that U.S. dairy production can continue to grow far past domestic demand. Don't feel sorry for your local dairy farmer. Even if you're not drinking their products, you're already helping them out plenty just by paying taxes.