News CETA

Canadian milkers still waiting for compensation

17 July 2020 - Jorine Cosse

When the Canada-Europe trade deal (CETA) was signed in 2017 and the Trans-Pacific deal (CPTPP) in 2018, Canadian dairy farmers were promised compensation. Some time has now passed, but no compensation has yet been received. Fast food chain McDonald's, on the other hand, does provide a little extra appreciation.

Just before the elections in 2019, the government announced that it had taken the first steps in setting up a compensation scheme. It is now almost a year later and there is still no question of a settlement, let alone that the Canadian dairy farmers know where they stand. This topic therefore predominated at the annual general meeting of 'the Dairy Farmers of Canada' (DFC), in which hundreds of dairy farmers from all over the country participated digitally.

Concrete plans
Following the concerns expressed by the dairy farmers during the DFC annual meeting, the representative is now demanding that the government come up with concrete plans. Especially since a next trade deal is planned, namely the deal between Canada, the United States and Mexico (CUSMA). DFC requires the government to draw up and make public a payment schedule that clarifies what compensation dairy farmers can expect and when for the CETA and CPTPP deals. DFC also asks the government to come up with a timeline that provides a clear picture of the time schedule and compensation scheme surrounding the CUSMA deal.

The compensation scheme is a promise from the Canadian government to its dairy farmers to help them offset the additional costs and lost revenues resulting from the closed trade deals. By 2024, among other things, the CUSMA deal that has yet to be completed will 'outsource' approximately 18% of domestic milk production abroad.

McDonald's
Although it is only a small band-aid on a major wound, there is also positive news for Canadian dairy farmers. As a result of the DFC's annual meeting, the Canadian branch of McDonald's has indicated that it will provide its dairy products with the DFC's 'Blue Cow logo'. This logo enjoys national recognition. With the logo, the fast food chain shows that its ice cream, among other things, is made from 100% Canadian dairy. Perhaps not the compensation that the dairy farmers have been waiting for so long, but a bit of extra appreciation.

According to CEO of DFC Perrie Lampron, the fast food chain shows that it has confidence and appreciation for the Canadian dairy farmers and the work they perform.

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Jorine Cosse

Editor at Boerenbusiness who studies the dairy, pig (meat) and feed markets. Jorine analyzes the roughage market on a weekly basis and periodically the compound feed market.

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