Welcome to the Bull Vine Podcast, your go-to source for inside stories, cutting-edge research,
and the latest updates in the world of dairy farming.
Our 140th first episode explores why Donald Trump hates Canada's dairy supply system.
So please grab a glass of milk, sit back, and let's get started with this episode.
Welcome to the Bull Vine Podcast.
I'm Bella and joining me today is Douglas.
We're diving into a topic that's been causing quite a stir in the dairy world.
That's right, Bella.
Since returning to the White House in 2025, President Trump has reignited his battle against
Canada's dairy system, calling it unfair to U.S. farmers.
With tariffs as high as 298% and trade tensions boiling over, milk has become a weapon in
international politics.
It's hard to believe that something as simple as milk could cause such controversy.
Douglas, can you break down how Canada's dairy system actually works?
Certainly, Bella.
Canada's dairy system operates on three main rules.
First, there's production control.
The Canadian Dairy Commission, or CDC, determines how much milk Canada needs and tells farmers
how much to produce.
This helps keep prices steady.
Second, the CDC sets minimum prices for milk.
This ensures farmers earn a stable income regardless of market changes.
For example, if it costs a farmer $1 to produce a liter of milk, the CDC might set the price
at $1.20.
Finally, there are import limits.
Canada places high tariffs on imported dairy products, up to 298% for butter.
This makes it very difficult for foreign dairy companies to compete in the Canadian market.
That's quite a system.
It seems designed to protect Canadian dairy farmers, but I can see why it might upset
other countries, especially the U.S.
Speaking of which, how has Trump renewed his attack on Canadian dairy?
Well, Trump has been vocal about his displeasure with Canada's dairy policies.
In fact, he once said, in Canada, what they've done to our dairy farm workers is a disgrace.
It's a disgrace.
He argues that Canada's high import taxes unfairly prevent American dairy products from
being sold in Canada.
Trump is also concerned about oversupply issues in the U.S.
With limited access to the Canadian market, U.S. dairy farmers face challenges with excess
milk and low prices.
In some states like Wisconsin, farmers often have to discard milk due to insufficient demand.
That does sound frustrating for U.S. farmers.
Has Trump taken any concrete actions since returning to office?
Yes, he has.
Trump has issued several executive orders affecting trade policies, indicating a stricter
stance on trade.
He's also seeking to renegotiate the United States-Mexico-Canada Agreement, or USMCA,
which could threaten Canada's dairy protections.
His administration has intensified efforts to dismantle Canada's supply management system,
making it a critical issue in bilateral discussions.
It sounds like this is causing quite a bit of concern in Canada's dairy sector.
How are Canadian farmers reacting?
Canadian dairy farmers are understandably worried.
Many fear they won't be able to compete if the market opens up to U.S. products.
There's a lot of uncertainty about potential changes to the system that could threaten
their livelihoods.
Canada recently passed Bill C-282 aimed at protecting supply management from trade deal
concessions.
But with increased pressure from the U.S., it's unclear how long they can maintain these
protections.
This isn't just about farmers, though, is it?
How does this system affect consumers in Canada?
You're right, Bella.
The system has both positive and negative effects on Canadian consumers.
On the plus side, it ensures a steady supply of milk, even when prices change in other
countries.
Canadians don't have to worry about milk shortages.
However, Canadians generally pay more for milk and cheese than Americans do.
A family in Canada might spend $100 more per year on dairy products than a similar family
in the U.S.
Also, due to high taxes on foreign dairy, Canadians may have limited access to foreign
cheeses and other dairy products in local stores.
It's interesting to see how different countries handle their dairy industries.
Can you give us a global perspective on this?
Of course.
The U.S. has a more competitive market, which results in lower prices for consumers, but
can create challenges for farmers when there's an excess of milk.
New Zealand removed its protections for dairy farmers in the 1980s and now primarily exports
its milk.
This has been good for their economy, but it also means they rely heavily on other countries
buying their milk.
Australia removed its protections in 2000, which led to many small farms going out of
business.
Now, Australia actually needs to import some dairy products.
So, what does the future look like for Canada's dairy system?
Are there any potential changes on the horizon?
There are several possibilities, Bella.
Canada could gradually open its market to more foreign dairy products over many years,
giving Canadian farmers time to adapt.
They could also focus on exporting more dairy products, which would require competing in
the international market.
There's also potential for technological advancements.
Canadian farms could invest in new technologies like robotic milking systems to become more
efficient and competitive.
Future changes might also focus on environmental sustainability or adapting to changing consumer
preferences for things like organic milk or plant-based alternatives.
It's clear that this issue is about more than just milk.
It's about trade, livelihoods, and the future of farming.
Any final thoughts, Douglas?
You're absolutely right, Bella.
This is a complex issue with no easy solutions.
Canada's push to dismantle Canada's protections offers hope for new markets for US farmers,
but it also raises questions about whether they can thrive in an increasingly competitive
global industry.
For Canadian farmers, the system that has provided stability for decades is under siege.
They're left wondering if gradual reforms or rapid changes will define their future.
Despite the tension, US Corps and Canadian farmers share common ground, a passion for
their work, and a commitment to feeding millions.
As this trade war rages on, perhaps the real opportunity lies in collaboration.
Could farmers on both sides of the border work together to address shared challenges
like climate change, shifting consumer demands, and the rise of dairy alternatives?
That's a thought-provoking question, Douglas.
The future of North American dairy is certainly uncertain, but one thing is clear.
The decisions made now will shape the industry for generations to come.
Whether you're milking cows in Wisconsin or Quebec, it's time to think beyond borders
and find a path that supports farmers, consumers, and the sustainability of dairy farming itself.
Thank you for this insightful discussion, Douglas, and thank you to our listeners for
tuning in.
Until next time, this is Bella and Douglas for the Bullvine Podcast.
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