DAIRY NEWS Editor’s note: Dairy Farmers of Canada (DFC) held its first virtual annual policy conference on Feb. 10 and 11, 2021. DFC filed these reports.
DAIRY FARMERS DISCUSS SECTOR’S FUTURE AT DFC’S ANNUAL POLICY CONFERENCE By Dairy Farmers of Canada
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round 500 dairy farmers from across Canada participated in Dairy Farmers of Canada’s (DFC) 2021 virtual annual dairy policy conference in February. The conference featured industry experts and former politicians from both sides of the border, discussing top issues and opportunities for the Canadian dairy sector. The industry is facing several headwinds, including market access concessions in recent trade agreements, tariff rate quota challenges from the United States, rising interest in plantbased alternatives and the increased emphasis from consumers and government on sustainability, to name a few. Pierre Lampron, DFC’s president, says the sector has a strong foundation to work from as an industry with a good track record on issues,
PIERRE LAMPRON, Dairy Farmers of Canada’s president, giving his address at the organization’s policy conference.
such as animal care, sustainability and innovation, powered by the thousands of Canadians who make their livelihoods from dairy farming.
SUPPLY MANAGEMENT IS ‘WHAT WE SHOULD BE DOING,’ SAYS FORMER U.S. GOVERNOR
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oward Dean, former Governor of Vermont, Democratic presidential candidate and Democratic National Committee chair, offered his unique perspective on the Canada-U.S. trade relations. In a virtual fireside chat with Lefebvre, Dean notes the many benefits of supply management. Hailing from a dairy state that neighbours Quebec, Dean is keenly familiar with the different approaches in dairy policy between Canada and the U.S. He endorses Canada’s supply management system and suggests the U.S. would benefit from adopting a variation of this system. “We essentially subsidize dairy illegally, and supply management is what we should be doing,” Dean says, adding the U.S. relies too heavily on exports and favours large corporations over family-run businesses. He says the collapse of small dairy farms in his state is an example of the U.S. system’s failures that demands considerable dairy subsidies. He also recognizes supply management’s inherent fo-
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FORMER U.S. GOVERNOR Howard Dean speaking at DFC’s policy conference.
cus on sustainability and innovation, which align with U.S. President Joe Biden’s green agenda. “If you keep doing the same thing, you are going to get the same result,” he says. “I think it’s time we try something significantly different. We have an example north of the border, which shows (supply management) works.” Dean says his country’s overreliance on exports was a source of tension in recent trade negotiations. However, Dean is optimistic about the future of Canada-U.S. relations. “What we really need is a relationship where we respect each other, and I think Biden will show that respect.”
“We have a good story to tell and we need to do a better job telling it, but that is not enough,” he says. “This is not the time to retrench. For the long-term future of the sector, we need to work together and speak with a common voice. We must seize the opportunity to establish our own destiny or someone else will define it for us.” Throughout the conference, speakers highlighted opportunities for growth in the market, viable sustainability options and the importance of innovation to fuel COVID-19 recovery. A range of experts and thought leaders also provided their advice on trade relations. The event concluded with a strategic planning session led by Jacques Lefebvre, DFC’s chief executive officer, allowing farmers to weigh in on a several issues—from setting objectives and timelines on initiatives contributing to climate change to diversifying revenue streams. Insights from the session are key to DFC’s annual strategic planning process.
MARKET OUTLOOK SHOWS MODEST GROWTH
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axime Collette, DFC’s senior analyst of market intelligence, says despite decreases in fluid milk consumption in previous years, consumption increased last year due to the COVID-19 pandemic. However, total butterfat consumption decreased due to closures in the hotel, restaurant and institution (HRI) sector, where it is used heavily in the form of cream products. Changes in the Canadian population also affected consumption patterns. A reduction in non-permanent residents and new immigrants, as well as an increase in total deaths, were all factors that complicated the COVID-related fluctuations in demand. Nevertheless, Canada’s supply management system insulated the sector from much of the volatility seen internationally. Looking forward, Collette predicted modest production growth in 2021 as a result of trade deals and the lingering impacts of the COVID-19 pandemic, including slow population growth and limited activity in the HRI sector. W W W.MILK PRODUCER.CA
