The U.S.-Mexico-Canada Agreement requires Canada to eliminate their class six and seven milk pricing systems and to have a fair dairy tariff rate quota. The U.S. dairy industry says Canada is currently limiting access to their dairy market, filling quotas from competitors who have no incentive to export to the country. “At this point, they have limited our ability, which means we’re not likely to sell as much product as we hoped,” said Tom Vilsack, CEO, U.S. Dairy Export Council. “We’ve called on the Canadian government to rethink the position.” Canada has six months to eliminate and replace their class six and seven milk pricing systems. “In order for prices to be set in the U.S. in a way U.S. dairy farmers can profit and stay in business means we have to find a market for additional milk. That market could, in fact, be Canada if they comply with the agreement.”
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