As the Trans Pacific Partnership (TPP) waits to be ratified, dairy farmers are hoping their interests are kept a priority.
Karlee Conway, Communications Coordinator for Alberta Milk, said dairy farmers in Alberta are very supportive of trade but were a little disappointed coming out of the TPP.
“Dairy farmers do so much for our rural economies,” said Conway. “If we give up market share of the TPP, it means we will have less support in rural communities.”
According to foreign affairs Canada, the TPP was reached the weekend of Oct. 5, but several elements may still be up for debate in the weeks ahead.
The TPP is the largest trade deal in history, consisting of 12 nations, which make up 40 per cent of global gross domestic product.
Under this deal an additional 3.25 per cent of the dairy market will be opened to foreign imports, but Canada’s supply-management system, which deals with strictly limiting imports, will remain largely intact.
Trevor Lewington CEO of Economic Development in Lethbridge, said although dairy farmers are not quite enthusiastic about the agreement, it’s looking positive for consumers and manufacturers here in southern Alberta.
“We should see lower prices and more variety,” said Lewington. “Manufacturers should have access to new consumers and export markets where there were tariffs and other barriers before.”
However, Wally Smith, president of Dairy Farmers of Canada (DFC), said time is needed to fully understand the impacts of the agreement on the industry.
“The milk displaced by this agreement will never be produced in Canada and will result in lost revenue for our farmers and the Canadian economy,” said Smith.
Smith also said the dairy industry has come a long way from the threat of the elimination of supply management.
Something Conway said makes sense for both dairy farmers and consumers.
“By getting rid of supply management and opening up our boarders, Canada could potentially have less high quality milk coming in and from the grocery store,” said Conway.
On the flip side, Lewington said if the dairy industry had to go through a marketing restructure, they could learn from other industries.
“We have seen the federal government do away with the Canadian Wheat Board and everyone thought the sky was falling, but so far it seems to be working fairly well giving farmers access to new markets and better flexibility.”
Until the TPP gets ratified and dairy farmers know exactly what the 3.25 per cent is comprised of, Conway said it’s a game of wait and see.
At the same time, Conway said dairy farmers are appreciative to the government for not compromising more of the industry and having two compensation programs to help make up for the loss of income.
