U.S. dairy industry divided on how to deal with Canada's supply management system

Alexander Panetta, The Canadian Press</span>
Published Friday, August 18, 2017 6:54AM EDT

WASHINGTON - The American dairy industry is split on the question of Canada's supply-management system as national negotiators get set to hold their first session on agriculture Saturday in North American free trade talks.

A vocal contingent of American farmers actually supports the Canadian system of price-and-import controls and wants their national negotiators to leave the Canadian system alone instead of fighting it as expected.

They don't want to eliminate Canada's system. They want to emulate it.

At least five organizations have expressed support for creating such a system in the U.S. Some have written letters to the official leading the U.S. trade team, urging Robert Lighthizer to leave the Canadian system alone.

That puts them at odds with the main national milk lobby, which is tied to export-based producers.

It's also at odds with the U.S. government position, which opposes Canadian supply management and has worked for years to weaken it.

"I would hate to go after a program that's protecting farmers, when that's really what farmers in the U.S. are asking," said Darin Von Ruden, who has a 50-cattle, multi-generational farm and heads the Wisconsin Farmers Union.

"Canada's supply-management program might not be perfect. But it certainly is doing a good enough job to make sure that those farmers, especially on the dairy side in Canada, can continue to stay in business and hand that farm on to the next generation."

Canada's system is highly controlled. It limits imports, and sets fixed prices. The system protects dairy operations from bankruptcy, but it draws deep criticism for a series of other alleged shortcomings: higher milk prices, fewer options at the grocery store, a less innovative industry, and the isolation of Canada from the international market, preventing it from becoming a global player.

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