September 19, 2018 –
Trade agreements cannot continue to negatively impact the dairy sector
The Dairy Processors Association of Canada (DPAC) today joins with dairy farmers in calling on the Canadian government to ensure that any final NAFTA deal does not negatively impact the sector and Canadian consumers.
“We remain steadfast in our belief that any outcome of a final NAFTA deal must contribute to the economic growth of both dairy farmers and processors,” said Mathieu Frigon, President and Chief Executive Officer of DPAC. “The dairy sector, the hard-working Canadians it employs, and billions of dollars in investments made by its farmers and processors, are worth fighting for.”
It is estimated that dairy processors have invested over $7.5 billion in capital assets and research and development to strengthen and grow Canada’s domestic dairy market over the last decade. The large majority of those investments have taken place in just the last four years.
However, market access commitments made by the Canadian government via previous free trade agreements, including the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and Canada-EU Comprehensive Economic and Trade Agreement (CETA), will decrease production and greatly affect the dairy processing industry’s ability to see returns on past investments. In fact, trade deals with Europe and the transpacific countries will result in $1.5 billion in lost returns on investments for dairy processors over the course of their implementation.
It is imperative that the Canadian government not allow NAFTA to further contribute to dairy processors and farmers losses.
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About the dairy processing industry
The dairy processing industry is the second-largest food processing industry in Canada. It directly employs 24,500 Canadians with an aggregate payroll of more than $1.2 billion annually. Dairy processing has a material presence in every province in Canada, with 207 federal ridings having at least one dairy processing facility.
About the Dairy Processors Association of Canada
DPAC is Canada’s national industry association representing the public policy and regulatory interest of the Canadian dairy processing industry. DPAC’s members represent some of the most recognized food brands in Canada.