g5000
Diamond Member
- Nov 26, 2011
- 128,965
- 73,269
- 2,605
June 15, 2018:
Furious American dairy farmers see the capital investment as yet another example of Canadian dairy farmers taking advantage of an unfair pricing system. Specifically, the Class 7 pricing program which came into effect last year and which, as I have previously written, introduced a favourable pricing category covering such skim milk components as skim milk powder. Butter lovers might define these as the leftovers.
Democratic Senator Chuck Schumer has been on the warpath about this since Class 7 came into effect, noting that Canadian exports of skim milk powder, rich in protein and ideal for baby formula, more than tripled in the first year of its existence, while dairy farmers in Cayuga County saw the export potential for their skim milk powders, to Canada and Mexico, shrink dramatically.
[snip]
The conditions, as there are now, are set for success.
That’s bound to change if Donald Trump decides to focus on Class 7 as a winnable concession in the NAFTA wars.
4 months later:
Class 7 Pricing Scheme in New NAFTA Deal
Trump administration officials said the USMCA eliminates Canada’s “Class 7” pricing system for milk ingredients and opens the Canadian dairy market to U.S. exports at an additional 3.59 percent (an increase from the 3.25% that was negotiated by the Obama administration under the Trans-Pacific Partnership).
Increased access to Canadian markets for dairy products was a major point of contention in trade talks, as was the termination of Class 7 pricing. The program saturated the international market with subsidized skim milk powder and cut the demand from Canadian cheesemakers for ultra-filtered milk from the U.S. USMCA will include the development of new safeguards to prevent major export increases for certain dairy products.
Jennifer Wells: How baby formula may end up as collateral damage in Trump’s NAFTA war
Favourable pricing of Canada’s skim milk powder puts a new infant formula factory in Kingston in the cross-hairs of NAFTA foes in the U.S., writes Jennifer Wells.
www.thestar.com
Furious American dairy farmers see the capital investment as yet another example of Canadian dairy farmers taking advantage of an unfair pricing system. Specifically, the Class 7 pricing program which came into effect last year and which, as I have previously written, introduced a favourable pricing category covering such skim milk components as skim milk powder. Butter lovers might define these as the leftovers.
Democratic Senator Chuck Schumer has been on the warpath about this since Class 7 came into effect, noting that Canadian exports of skim milk powder, rich in protein and ideal for baby formula, more than tripled in the first year of its existence, while dairy farmers in Cayuga County saw the export potential for their skim milk powders, to Canada and Mexico, shrink dramatically.
[snip]
The conditions, as there are now, are set for success.
That’s bound to change if Donald Trump decides to focus on Class 7 as a winnable concession in the NAFTA wars.
4 months later:
Class 7 Pricing Scheme in New NAFTA Deal
Trump administration officials said the USMCA eliminates Canada’s “Class 7” pricing system for milk ingredients and opens the Canadian dairy market to U.S. exports at an additional 3.59 percent (an increase from the 3.25% that was negotiated by the Obama administration under the Trans-Pacific Partnership).
Increased access to Canadian markets for dairy products was a major point of contention in trade talks, as was the termination of Class 7 pricing. The program saturated the international market with subsidized skim milk powder and cut the demand from Canadian cheesemakers for ultra-filtered milk from the U.S. USMCA will include the development of new safeguards to prevent major export increases for certain dairy products.