However, there is little supply management in the U.S., so when the price goes down, farmers often attempt to produce more. That, in turn, makes the price fall even more, explained John McCart, a recently retired dairy farmer and the president of the Quebec Farmers\u2019 Association. McCart now grows corn and soybeans near Grenville-sur-la-Rouge.<\/p>\n
\u201cI\u2019m sure (supply management is on the table),\u201d McCart said. \u201cI think their attitude is that they don\u2019t like seeing it protected and they want to come in and dominate.\u201d <\/p>\n
McCart explained most Canadian dairy farmers sell their product within Canada, so the tariff threat is much less important than maintaining supply management. With the reopening of the USMCA trade agreement, McCart is concerned supply management could be at risk.<\/p>\n
He said as part of those negotiations, there is talk Canada could grant U.S. dairy farmers a greater share of the Canadian market, in exchange for more security in the auto sector, for example.<\/p>\n
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\u201cThere would be some serious explaining to do if Canada would give in to this again,\u201d McCart said. \u201cWe\u2019ve done it twice already, we don\u2019t have to open it up again.<\/p>\n
\u201cInstead of the two per cent that we gave (in the last negotiations), if we gave 10 per cent, that would be devastating to the industry,\u201d he said. \u201cIf that\u2019s the best deal for Canada, it won\u2019t be the best deal for Canadians or Canadian dairy farmers.\u201d<\/p>\n
McCart added keeping milk and other products local is the best way to ensure they are affordable. <\/p>\n
\u201cIf you start shipping milk eight to 10 hours away, the costs are there; there\u2019s not going to be a huge benefit to the consumer,\u201d he said.<\/p>\n
Dairy farmer Ben Nichols said his business has already been affected by the rising cost of fuel.<\/p>\n
\u201cWhat is most annoying right now is fuel prices, because it takes energy to make product,\u201d Nichols said. \u201cSo when the price of energy goes up, the price of everything goes up.\u201d<\/p>\n
Speaking to The Gazette on Thursday, Martin Caron, president of the Union des producteurs agricoles (UPA), said his group is closely monitoring trade negotiations with the U.S. He, too, is less concerned about tariffs, but more about the general uncertainty that comes when trade agreements are put into question, adding sales in the U.S. represent a small amount of what is produced by farmers represented by his organization.<\/p>\n
\u201cFor the dairy industry, I think exports to the U.S. represent two per cent,\u201d Caron said. \u201cFor us, it\u2019s never good to put down tariffs, especially when it comes to predictability. At the end of the day, it means consumers will have to pay more and that\u2019s never good.<\/p>\n
\u201cUncertainty is bad for us, but also for our neighbours to the south because our systems are so integrated at this point.\u201d<\/p>\n
Caron said the tariffs and the countermeasures imposed by the Canadian government is making everything more expensive, especially since most farm equipment is made in the U.S.<\/p>\n
He\u2019s aware U.S. producers have been asking for more of the Canadian market, but isn\u2019t concerned supply management will be given up by the Canadian government.<\/p>\n
\u201cWe have to always remain vigilant, but it doesn\u2019t seem like (U.S. producers) are very concerned about supply management,\u201d Caron said. \u201cThe Canadian government and the provinces have all passed motions affirming they will keep it in place.\u201d<\/p>\n
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