Perdue Talks Unfiltered Milk Controversy with Canadian Ag Officials

From the USDA:

More on Ag Secretary Sonny Perdue's trip to Toronto, Canada -- 

U.S. Secretary of Agriculture Sonny Perdue on June 6 completed a trip to Toronto, marking his first international trip as secretary.  

Perdue conducted a series of meetings with Canadian officials, including Canadian Minister of Agriculture and Agri-Food Lawrence MacAulay and current Premier of Ontario Kathleen Wynne, regarding bilateral trade issues of importance.  

Among other issues, Perdue raised the topic of American ultra-filtered milk that has been a point of disagreement between the U.S. and Canada.

Perdue also participated in a celebration of the 10th year of the Southeastern United States-Canadian Provinces Alliance (SEUS-CP), an organization meant to foster mutually beneficial relationships Perdue helped found as governor of Georgia in 2007.  Perdue participated in a “fireside chat” regarding SEUS-CP with former Premier of Quebec Jean Charest.

Finally, Perdue attended the inaugural “tasteU.S.” culinary showcase of Southeastern United States products at the Marché Mövenpick Brookfield Restaurant.

Following his meetings in Canada, Perdue issued the following statement:

“We had very good, very candid discussions, very frank, like family members discussing some things that are not necessarily comfortable. We laid out a great framework to begin renegotiating NAFTA.

“I was able to describe the issues that we feel are important to resolve – and can be resolved – as we begin to renegotiate NAFTA. 

That has to do, obviously, with the dairy issue and the wheat grading issue that deals with feed grade wheat that’s not grown in Canada. And also certain provincial wine issues, where wines are not displayed out in front where other Canadian wine is.

“It was not the purpose today to enter into deep negotiations back and forth, but to lay out the issues that we had concerns about. It’s not our purpose to try to manage or try to get involved in their internal supply management regarding the dairy industry. The ultra-filtered milk was not included in NAFTA.  

And I made it very clear that the Class 7 designation we felt was an unfair undercutting of the U.S. industry that grew up south of the U.S.-Canada border. It cut these producers and this industry out of shipping the ultra-filtered milk into their cheese industry, which was in demand in Canada.  

I also said, if you want to manage your dairy supply with supply management, that’s fine. You just need to manage it and not overproduce to create a glut of milk solids on the world market that’s being dumped at unfair prices.

“While we didn’t try to negotiate back and forth, I think it was clearly understood that we consider all options on the table and we’ll pursue them in the best interests of U.S. producers.”

U.S. Ag Secretary Perdue Visits Canada

From the USDA:

Agriculture Secretary Sonny Perdue is in Canada today making his first international trip as U.S. Secretary of Agriculture.

“The bilateral U.S.-Canada relationship is important to the prosperity of both of our countries and I look forward to strengthening this bond with our neighbors to the north moving forward,” said Perdue. 

Perdue will meet with Canadian Minister of Agriculture and Agri-Food Lawrence MacAulay and other Canadian officials in Toronto to discuss priority agricultural issues regarding Canada and the United States.   

In addition, Perdue will participate in the 10^th anniversary conference of the Southeastern United States-Canadian Provinces Alliance (SEUS-CP), of which he was a founding member while serving as Governor of Georgia.  At a downtown Toronto restaurant, he will also kick off what will be a two-week-long event showcasing U.S. foods and beverages.

As two of the world’s largest agricultural producers with a shared border, Canada and the United States are key markets for each other’s agricultural products. 

In 2016, the United States exported $20.2 billion of agricultural products to Canada, making it our second-largest agricultural export market, while Canada exported $21 billion of agricultural products to the United States.

Why is Trump Threatening Canada Over Milk?

The BBC is now weighing in on the disagreement between Canada and the United States concerning dairy.

Check out the http://www.bbc.com/news/av/39724043/whys-trump-threatening-canada-over-milk?SThisFB story at this link.

New York Farm Bureau Reacts To Canadian-US Dairy Trade Issue

Statement from New York Farm Bureau President David Fisher on the dairy policy issued by Canada that is affecting New York farmers:

"New York Farm Bureau appreciates the strong, bipartisan response to Canada’s unfair dairy policy that threatens to suppress an already low dairy economy in this country. President Trump’s vocal support is a result of Governor Cuomo’s work with Wisconsin’s Governor to ask Canada to reverse course. 

"Sens. Schumer and Gillibrand also requested assistance from the White House. It is positive to see our leaders working together to address this serious trade matter.


"New York Farm Bureau has been engaged on this issue for more than a year working with the state's dairy processors and lawmakers. We are asking our leaders to continue to push Canada to stick to its commitments under current trade agreements. 

"While some processors and milk cooperatives are already losing millions of dollars in business, this has the potential of hurting dairy farms across the state. The ultra-filtered milk once destined for Canada must now find a home in other markets. The increased milk supply will potentially drive down already low milk prices. 

"American farmers benefit from fair trade policies and we need to keep the borders open to our products, in particular with Canada, which is one of New York’s main trading partners," said David Fisher, New York Farm Bureau President.

Canada's Trudeau Has An Answer for Trump's Dairy Trade Question

Go to https://www.bloomberg.com/news/articles/2017-04-20/canada-s-not-the-challenge-for-u-s-dairy-trudeau-says to see the story.

Canada's Ban on Ultra-Filtered Milk Hurts Aurelius Company

Go to http://auburnpub.com/blogs/eye_on_ny/ceo-cayuga-milk-ingredients-lost-m-in-sales-overnight-due/article_f85b4c52-2563-11e7-907c-0724c5c124aa.html to see the story.

Cuomo Asks Trump to Fight Canadian Dairy Pricing Problem

Check out the story at http://www.watertowndailytimes.com/news03/cuomo-calls-on-trump-to-fight-canadian-dairy-pricing-president-vows-action-20170419 this link.

Canada-US Dairy Trade Issue Coming Tomorrow on Empire State Farming Blog

Be sure to check out the Empire State Farming blog Friday for three interesting stories and a response from New York Farm Bureau about the dairy trade issue with Canada.

New York's Milk Marketing Advisory Council Meets Again

From the NYS Department of Agriculture and Markets

The state Department of Agriculture Commissioner Richard A. Ball today (Nov. 29) announced the department has reconvened the Milk Marketing Advisory Council (MMAC), which was created to advise the commissioner on issues important to the dairy industry.  

The council met today to discuss the challenges and opportunities facing the state’s largest agricultural sector.

The MMAC is composed of more than 24 members from the dairy manufacturing and processing sectors, from dairy farmer cooperative associations, in addition to milk consumers and representatives of milk retailers.  

The Advisory Council’s goal is to advise the ag commissioner on policy issues impacting New York’s dairy industry, and provides a forum for communication and networking between dairy community leaders.

Today, the MMAC discussed topics including the current milk market situation, increased production, and trade agreement policies, in particular with Canada.  This comes on the heels of Gov. Andrew Cuomo's letter to Canadian Prime Minister Justin Trudeau, expressing his opposition to proposed regulations that would create a barrier for New York’s dairy farmers exporting a key New York dairy product to Canada.  

Cuomo called on the Canadian government to develop a national agreement to mutually benefit trade across borders.

In addition, the department provided in-depth information on the state’s New York State Grown & Certified food labeling program. Launched in August, the program assures consumers that the food they are buying is local and produced to a higher standard by requiring participating producers to adopt good agricultural practices and enroll in an environmental management program.  

The program is being expanded to include dairy producers and processors and will provide significant marketing benefits to New York’s milk and dairy products industry. Learn more about the Grown & Certified program by https://www.youtube.com/watch?v=LrNmWAF51Cc&feature=youtu.be  clicking on this link.

The Milk Marketing Advisory Council will meet again June 1, 2017.

“I’m pleased to reconvene the Milk Marketing Advisory Council and bring together such a great group that represent the very best of the industry — from our farmers to our processors to our retailers," Ball said.  

"Today’s meeting provided an opportunity for the group to delve into some of the key issues the industry is facing today, such as market conditions and trade barriers, but it also gave us the platform to inform our producers and processors about some of the new exciting marketing programs available, like the NYS Grown & Certified program, to help our dairy businesses grow," he said. "I look forward to continuing the great dialogue started here today.”

“The dairy industry faces daunting challenges but also terrific opportunities. We have seen the dairy industry struggle with low milk prices, an unprecedented drought this summer and continued consumer demand on the food system, but the dairy sector rises to those challenges and provides great products," said Andrew M. Novakovic, Cornell University professor of agricultural economics and chair of the council.

"The industry members who are represented on the commissioner’s Milk Marketing Advisory Council are eager to assist the State in providing input to improve the sound framework in which the dairy industry operates,” Novakovic said.

New York’s dairy industry ranks fourth in the nation for total milk production with more than 14 billion pounds produced annually from 620,000 dairy cows.  New York has just over 4,800 dairy farms and generated $2.6 billion in 2015 from the sale of milk, which represents nearly half of the state’s total agricultural receipts.

New York’s dairy industry also consists of nearly 400 dairy processors and manufacturers, numerous dairy support services, such as veterinarians, feed dealers, equipment dealers and others as well thousands of retailers that provide milk and dairy products to New Yorkers throughout the state.

 

New York, Canada Continue Dairy Talks

From Empire Farm & Dairy magazine

By JIM KRENCIK
JKRENCIK@BATAVIANEWS.COM
 
ALBANY — A confrontation over Canadian efforts to restrict New York-originated dairy products from a vital market remains at the forefront of dairy industry concerns and discussions between governments.
 
Dairy industry officials said Nov. 1 they are hopeful after the latest round of support from the state government will strengthen their position, but no resolution has been raised that would quell fears that a significant portion of the market is threatened.
 
Industry interest in Canadian policies has been heightened by the enactment of provincial regulations earlier this year which favored Ontario producers over their New York counterparts in supplying ultra-filtered milk.
 
The product, a protein-rich skim milk variety, is primarily used in cheese and yogurt production, and had enjoyed a duty-free status, but now faces increased costs to benefit Ontario dairies.
 
The proposed National Ingredient Strategy would expand the import limitations across Canada, despite claims that it violates existing trade agreements like NAFTA.
 
“At a time when low milk prices are threatening the viability of some family farms, any step by Canadian leaders to unfairly restrict the flow of milk into the Ontario province and beyond will have detrimental impacts on farmers and the overall farm economy,” said Dean Norton of Elba, the New York Farm Bureau’s president.
 
Industry officials pegged Canadian protectionism as risking an end market for more than 180 millions of pounds of milk. That’s roughly 20 percent of sales, O-AT-KA Milk Products Board Chairman John Gould said.
 
“Canada continually attempts to erect trade barriers where there should be none,” Gould said, noting his business reflects the “efforts, investment and hopes” of hundreds of dairy farmers and workers at the Batavia milk plant.
 
More than half of the state’s agricultural imports come from dairy products and components, with Canada the largest trading partner. But trade cooperation goes beyond milk, and far beyond agriculture. 

State Agriculture and Markets Commissioner Richard A. Ball said that message was firmly made at meetings marking the 25th anniversary of Tri-National Agricultural Accord, held in Niagara Falls, Ontario.
 
“It was very much implied that trade is about doing business with one another, that the goal of the Accord is to do more trade, not less. Free and open trade, and to try to stop countries from protecting unfairly a sector,” Ball said. “The tri-lateral accord can deal with trade irritants, but we made the case that for New York and the United States, this is something that rises above the level of an irritant.”
 
Ball said support for the state’s position was echoed by other dairy-heavy states like Wisconsin and Vermont, those without a strong dairy connection, and even the Mexican representatives — who are concerned that subsidized Canadian milk could flood their production markets.
 
“We’ve stood our ground ... very seriously and in a decent way, and they heard the message,” Ball said.
 
NYFB spokesman Steve Ammerman said the national American Farm Bureau Federation, headed by President Zippy Duvall, has also met with Canadian representatives.
 
“The word our president received is that this is a provincial, but not a national issue, but there was no promise it won’t spread to other provinces,” said Ammerman, who noted the importance to keep applying pressure on the Canadians. “Talks are going on at every level ... we’re hopeful they will reverse course, but that hasn’t happened at this point.”
 
New York will explore all options available to ensure the dairy industry has fair access to the Canadian export market, Gov. Andrew Cuomo said in announcing his opposition to the proposed regulations. In a letter to Prime Minister of Canada Justin Trudeau, Cuomo urged the Canadian government to develop a mutually beneficial national agreement.
 
While intentions are in concert, the industry is uncertain about the result. A conclusion to the issue is difficult to speculate, O-AT-KA Milk Products CEO Bill Schreiber said, as there’s been no clear change in Canadian mindsets and no announced changes to the programs under consideration.
 
“What I can say with certainty is that members of the dairy industry, organizations representing the dairy industry and members of government at every level have gotten behind this effort, to get Canada to play by the rules,” Schreiber said. “We’re hopeful, and grateful for their support.”
 
The impact of the negotiations will weigh on the industry’s support for other trade deals.
 
“I question if we, as a New York cooperative, should give our support to the passage of the Trans-Pacific Partnership if we cannot trust the Canadian government to comply with its past agreements,” said Upstate Niagara Cooperative CEO Larry Webster, who added that Trudeau’s response “should answer that question.”
 
Speaking with the Canadian representatives, Ball said he pointed to the support the dairy industry had offered in the past. When the U.S. lost a World Trade Organization ruling over County of Origin Labeling, it was dairy farmers that went to Washington to find a solution. They are the same farmers the latest issue will harm the most.
 
“We need to work together, not against each other,” Ball said.

Trans-Pacific Partnership Trade Agreement May Not Be Big Win for New York Agriculture

From Empire Farm & Dairy magazine:

By MARC HELLER

WASHINGTON — Dairy farmers hoping to see a rush of business between the United States and Canada — a market largely closed to American milk products — may want to hold their applause for the Trans-Pacific Partnership.
 
That is the message from lawmakers and organizations representing dairy farmers and plant owners, who say the 12-nation deal reached in 2015, still subject to approval in Congress, does not clearly spell a big win for New York agriculture.

Lawmakers are likely to vote on it this year.
 
The outcome could shape the future for key parts of the dairy business in New York, which ranks near the top in U.S. production of manufactured dairy products such as cheese and yogurt that can be easily exported; beverage milk is reserved mostly for domestic use, although U.S. producers have angled unsuccessfully for more fluid sales into Canada too.
 
The big issue is whether Canada will relax its milk supply management system enough to allow substantial amounts of U.S. dairy products into the country.
 
“Even with the TPP agreement, Canada continues to strongly endorse their supply control program and protect their borders from serious dairy imports and exports,” said Bruce Krupke, executive vice president of the Northeast Dairy Foods Association, representing milk processors. 

“I don’t see their domestic dairy policy changing in the near future, much to their detriment. I also don’t see any increased dairy trade near-term opportunities with them either,” Krupke said.
 
Krupke said he does not rule out the possibility of longer-term trade prospects with the agreement’s signers, including Japan and Vietnam. New York Farm Bureau, representing farmers of every type in the state, generally supports the deal because it could lower trade barriers to growing markets, said spokesman Steve Ammerman.
 
Skeptical lawmakers, including Sen. Kirsten Gillibrand (D-N.Y.) and Reps. Tom Reed (R-Corning) and Elise Stefanik (R-Willsboro) said they haven’t decided whether to support the deal, largely because of concerns about U.S. dairy trade with Canada.
 
“The TPP negotiations have caused me a great deal of heartburn,” Reed said in an interview. “I still believe they have a lot farther to go.”
 
Sen. Debbie Stabenow (D-Mich.), ranking Democrat on the Senate Agriculture Committee, “pushed our trade negotiators until the very end to secure the best deal possible for American dairy farmers in TPP,” a Democratic committee aide said.
 
The Obama administration strongly supports the deal, which its representatives helped negotiate. President Obama urged Congress in his State of the Union Address to approve it this year.
 
Passage isn’t assured. In addition, some presidential candidates, including Sen. Ted Cruz (R-Tex.) and Hillary Rodham Clinton, the front-running Democrat, say they oppose it.
 
The biggest lobbying group for dairy farmers, the National Milk Producers Federation, which represents farmer-owned bargaining cooperatives, hasn’t come down one way or the other.
 
“It’s quite a complicated agreement,” said Shawna Morris, vice president of trade policy at the NMPF, headquartered in Arlington, Va. The deal contains hundreds of dairy provisions and will take some time to review, she said.
 
The good news, from the U.S. dairy industry’s perspective, is that the TPP does not appear to open the U.S. to a flood of dairy products from other countries such as New Zealand, where milk is produced cheaply for export.
 
“When the TPP effort began, it was little more than a façade for a free trade agreement with New Zealand,” the NMPF said in a newsletter to members. “Eventually, in response to consistent recommendations from NMPF and others, countries with more significant dairy markets – Canada and Japan – were added to this agreement. Those decisions created new opportunities for our industry in TPP that previously had not been possible.”
 
Dairy groups agree that trade is becoming more important to the U.S. industry, and New York as the third-ranking state for cheese production and a top producer of yogurt is especially affected. 

Nearly a fifth of U.S.-produced dairy solids were exported in 2014, Krupke said. As much as some farmers or manufacturers may not like the idea of depending on trade with foreign countries, he said, “We have to get used to the concept and embrace it.”
 
Reed, who serves on the House Ways and Means Committee — which oversees trade policy — said in an interview that he worries about how the actions of U.S. trading partners affect the state’s milk and wine businesses, for example.
 
Already, New York wine makers can’t use the term “Champagne” for the sparkling white wine they sell to some countries, and terms such as “gouda” or “parmesan” for cheese made in New York may be endangered in some European markets.
 
This year could bring more developments on that issue, known as geographic indicators, farm groups said.
 
That dispute plays out in yet another trade deal taking shape, the Transatlantic Trade and Investment Partnership.

If you like what you read from the magazine, you can subscribe to it by sending $50 for one year or $75 for two years to Empire Farm & Dairy, 260 Washington St., Watertown, NY  13601

Farming is Dangerous

A sad, but well-written piece.

Farming is dangerous, even when you take the greatest of precautions.

Go to https://cowboysmusings.wordpress.com/2015/10/14/a-loss-beyond-words/ to read the story.

New York Could Benefit Greatly form the Trans-Pacific Partnership Trade Agreement

The U.S. Department of Agriculture on Wednesday put out a fact sheet stating how New York will benefit from the Trans-Pacific Trade agreement.

The fact sheet states New York state has five basic agricultural exports: dairy, fruit and nuts, vegetables, soybeans and feeds and fodder. New York ag exports have a value of about $1.7 billion.

Dairy --Japan will eliminate tariff s on cheese and whey and create tariff -rate quotas (TRQs) for whey, butter, milk powder and evaporated and condensed milk. Malaysia and Vietnam will eliminate tari ffs on dairy products. Canada will eliminate tari ffs on whey and create TRQs for cheese, fluid milk, butter and other products.

Fruits -- Japan, Malaysia, and Vietnam will eliminate tariff s on all fresh and processed fruits, including citrus.

Vegetables -- Malaysia and Vietnam will immediately eliminate all tariff s,and Japan nearly all tari ffs, on fresh and processed vegetables. All three countries will eliminate tariff s on potatoes and
potato products

The fact sheet states "The Trans-Pacific Partnership (TPP) will boost demand for U.S. farm and food products among nearly 500 million consumers in 11 countries across the Asia-Pacific region. By reducing tariff s and opening new markets for American agricultural products, the TPP will help increase farm income, generate rural economic activity and support local jobs."

 

A total of 12,900 jobs in New York state are supported by agricultural exports to other countries.

 

Also on Wednesday, Andrew Novakovic, a professor in the Dyson School of Applied Economics and Management at Cornell University, said the Trans-Pacific Partnership agreement could result in the opening of Canada as a dairy market for the United States and New York -- a market that has been closed for years.

 

He issued the following statement on how the Trans-Pacific Partnership will help the New York dairy industry:

 

“The outlines of the dairy agreement contained in Trans-Pacific Partnership is distinguished not so much by what it did, but rather that it managed to do anything at all. The participants in the trade agreement include the two most protectionist dairy sectors in the world and, arguably, the two most liberal.

The U.S. occupies an intermediary position that was very protectionist 20 years ago, and has become more liberal and more self-assured in world trade.

The breakthrough for the dairy chapter was a Canadian agreement, under heavy U.S. lobbying, to expose their closed system to slightly greater imports, which they cleverly will do within their production quota system.

Under the Canadian system, not only has the trade door been closed, they have tightly managed milk production to essentially assure stable and profitable prices for dairy farmers.

The accumulated effect has been a Canadian dairy industry that in many respects resembles U.S. farming of 40 years ago and prices that are increasingly higher.

From 1991 through 2000, Canadian farm milk prices averaged 18 percent higher than the U.S. Since 2000, they have averaged 62 percent higher. Profitability in Canada is more stable than the U.S., but not dramatically higher.

The implication is that the supply-managed system has, over time, allowed increased costs to be rewarded with increased prices. Eliminating the protection of the Canadian cocoon is a frightful prospect for Canadian farmers and an alluring opportunity for world exporters, including New Zealand and the U.S.

Although Canada apparently has agreed to only permit an amount of dairy product imports equal to 3.25 percent of its total milk supply, this represents a brand new opportunity for the U.S. to develop marketing relationships with Canadian processing and marketing companies and the confidence of Canadian consumers.

This opportunity will be available to any dairy firm in the U.S., but it will be especially enticing to border states, like New York. As a beginning, it is assuredly modest, but what is terribly important is that it is a beginning.”

 

 

GMO Wheat May Have Been Spread by Geese

Go to http://www.upi.com/Odd_News/2013/07/24/Documents-GM-wheat-may-have-been-spread-by-geese/UPI-12671374705878/ to see the story.

Farming Takes Off in Canada

Go to http://www.chathamdailynews.ca/2013/06/12/land-prices-soaring-ag-business-booming to see the story.

Gillibrand Pushes for Tax Exemption to Boost NY Wine and Craft-Beverage Sales in Canada

Go to http://www.cnybj.com/News/Articles/TabId/102/ArticleId/36919/language/en-US/gillibrand-pushes-for-tax-exemption-to-boost-ny-wine-and-craft-beverage-sales-to-canada.aspx#.Uazi6ZzCaP8 to see the story.

Lower Priced Mozzarella (Possibly from NY?) To Top Canadian Pizzas

Photo from a Cornell University blog

Interesting story out of Canada. Could this help U.S. dairy farmers??

http://m.theglobeandmail.com/report-on-business/economy/pizza-lovers-rejoice-dairy-farmers-clear-path-for-discounted-mozzarella/article11669742/?service=mobile