menu_open Columnists
We use cookies to provide some features and experiences in QOSHE

More information  .  Close

For June Dairy Month, Trump Should Celebrate the Canadian System, Not Denounce It

3 0
29.06.2025

Uncertainty is nothing new for farmers.

Freak weather changes and fluctuations in the market make planning for the future a gamble, never a sure thing. Dairy farmers have to deal with the additional issues of needing to keep their herds healthy and well-fed, as the price farmers receive in part depends on bacteria counts, and also the fat and protein content of the milk. If things weren’t hard enough, milk is a highly perishable product, which, unlike grains, cannot be stored and then sold when prices improve.

Giving farmers even more headaches these days is President Donald Trump’s on-again, off-again trade war. Specifically, farmers have to endure even more uncertainty than normal as prices for inputs like seed or fertilizer may rise with tariffs, while their export markets abroad are endangered. In this mix of the president’s ongoing trade spats, he's ridiculing Canada for protecting its dairy farmers with their supply management system, alleging that it harms U.S. farmers.

The moral of the story is that exports don’t keep farms in business, but instead allow larger operations to capture market share for themselves while driving out the smaller operations that have long defined U.S. dairy.

But here’s the reality—Trump’s plans don’t work for U.S. farmers. In fact, his intention to increase exports and enter the Canadian market fails both American farmers and our partner to the north.

Mexico has long been the main customer for our dairy exports and is regularly the No. 1 importer of all U.S. goods. This is a mutually beneficial arrangement as Mexico is a milk deficit country and meeting their domestic consumption needs requires imports. That’s how trade should work—when one country has stuff to sell that another country wants to buy, everyone wins.

With our neighbors to the north, the story is much different.

Canadians do not want our products forced into their market. Actually, Canadians want their system to stay as it is. It’s not difficult to see why. The Canadian supply management system ensures dairy farmers a fair price for their milk by tying domestic dairy production to consumption. Prices are negotiated in periodic meetings between farmers and processors to assure a baseline cost of production for producers and an adequate supply for domestic needs. Unlike the U.S. system, in........

© Common Dreams