U.S. Dairy Companies Continue to Push for an Agreement with Canada


New Delhi, May 22, 2021: Several dairy companies are joining a push to get the U.S. Trade Representative to reach an agreement with Canada over its dairy tariff-rate quota (TRQ). A group of 67 dairy companies say they want Katherine Tai to initiate a dispute settlement with the country. That’s if ongoing consultations don’t result in an immediate resolution.

The talks began in December of last year with Canada over the issue, but officials with the National Milk Producers Federation and the U.S. Dairy Export Council say it’s not readily apparent that progress has been made. They contend Canada is reserving the bulk of quota access to Canadian processors and is not providing fair or equitable procedures in administering the TRQ’s.

Federal Milk Pricing Issues

Five Midwestern dairy groups looking into possible solutions to federal milk pricing issues have sent a letter to ag secretary Tom Vilsack. The groups saying in the letter if there is a Federal Milk Marketing Orders emergency hearing about reform, it’s important that it be broad in scope.

Earlier this year the groups issued a proposal called “Class Three Plus.” The goal is to create long-term stability in fluid milk pricing and reduce the likelihood of negative producer price differentials according to the reports published in dairyherd.com.

The letter says there are differences of opinion within the dairy community over how to proceed. That’s because the National Milk Producers Federation has a plan of its own. It would change the current Class One fluid milk price mover by adjusting the amount every two years. The move would be based on conditions over the prior 24-months with the current move remaining the floor.


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