As Canadian dairy farmers find themselves in the crosshairs of NAFTA negotiations, a member of the industry says that American farmers鈥� problems will not be solved by dismantling Canadian dairy protections.
Graham Lloyd, general manager of the Dairy Farmers of Ontario marketing group, told CTV News Channel that he believes the issue with the American dairy industry is that farmers produce more milk than necessary and rely too heavily on government subsidies to remain in operation.
鈥淵ou look at what鈥檚 happening in the United States, Australia and New Zealand, they have failing farms, they don鈥檛 control production and so they have massive overproduction and that results in low prices and bankrupt farms,鈥� Lloyd said.
Lloyd adds that overproduction among American dairy farms is so high that the problem can鈥檛 be resolved by entering the much smaller Canadian market.
鈥淲hy would Canada open up its market to the U.S.? It鈥檚 not going to benefit the U.S. economy, it鈥檚 not going to benefit the U.S. dairy, it鈥檒l only cause harm to the Canadian dairy,鈥� he said.
Instead of government money, the Canadian dairy industry relies on supply management, which ensures farmers are only producing enough milk to meet Canadian demand. Lloyd believes this system has kept Canadian farmers afloat while those in other countries feel the pinch.
鈥淐anadian dairy is actually one of the only, if not the only, dairy system that鈥檚 thriving in the world,鈥� he said. 鈥淲e鈥檙e an essential part -- a backbone -- of our economy.鈥�
According to the Dairy Farmers of Canada, who鈥檝e been in Washington, D.C. for the NAFTA negotiations, Canadian dairy farmers contribute $20 billion to the national economy. Lloyd says $6 billion comes from Ontario.
Rumours are swirling around Washington that dairy has become one of the primary sticking points in NAFTA negotiations between Canada and the U.S.
Prime Minister Justin Trudeau has been adamant that the government will not accept a deal that includes the dismantling the Canadian dairy supply management system, while U.S. President Donald Trump has repeatedly stated that American dairy farmers are suffering at the hands of these Canadian regulations.
Meanwhile, outside Ottawa, dairy farmer Nick Thurler is keeping a close eye on the negotiations as his livelihood at the family farm rests in the balance.
Thurler says any changes to the supply management system would mean scaling back his business.
鈥淚t's hard to control the supply if you鈥檝e got imports coming in all the time,鈥� he said. 鈥淪o that means less milk to ship and we would have to downsize.鈥�
With a report from CTV Ottawa鈥檚 Megan Shaw
