1 Million Pounds of Milk Per Day Wiped from Processor's Books

April 5, 2017 02:46 PM

There’s been a lot of talk about renegotiation of the North American Free Trade Agreement (NAFTA), and a new trade barrier between the U.S. and the Canadian dairy industry is likely to find its way to the surface, and soon.

In a letter from Grassland Dairy Products in Wisconsin, dairies across the state were notified the processor would stop accepting their milk supply beginning May 1.

The dairies now have less than a month to find a new destination.

Grassland told Farm Journal’s MILK they had a two-day notice that it wouldn’t be able to export ultra-filtered milk to Canada due to new dairy regulations. Roughly 1 million pounds a day in sales was wiped off the books.

Tom Vilsack, former secretary of agriculture and current EO of the U.S. Dairy Export Council (USDEC), spoke about the new dairy restrictions on AgriTalk with host Mike Adams. He says as talks heat up over renegotiating NAFTA, the Canadian dairy industry needs to be a focus.

“They’re developing a new classification, Class 7, and we believe it’s been potentially designed to make it very difficult for American product to get into Canada,” said Vilsack. “It’ll tip the balance even further.”

The USDEC says they expect another three to four processors to be in the same situation as Grassland.

The two biggest states likely to feel the impact are Wisconsin and New York

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Spell Check

Craig Phelps
Groveland, NY
4/7/2017 02:41 PM

  This news is discouraging, particularly as we see large volumes of Canadian wheat and corn flowing into western N.Y. without restriction. I am a huge proponent of free trade, but we do need to be sure that is is free both ways.

bad axe, MI
4/6/2017 06:55 AM

  Putting all this credit market debt of 68 trillion , 14 times high than it was in 1980, made the boom now were into the bust for probably at least a decade.


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