Federal Budget a step in the right direction on dairy processors compensation

April 19, 2021 –

The Dairy Processors Association of Canada (DPAC) welcomes measures announced in the 2021 Federal Budget to support dairy processors impacted by recent trade agreements as a step in the right direction. 

Compensation measures totalling $292 million for two agreements, CETA and CPTPP, will support processors under supply management as the industries transition to the new market realities created by the agreements. 

“The measures announced in today’s budget are a very good starting point toward the Government’s commitment to ‘full and fair compensation’ for Canada’s dairy processors,” said Mathieu Frigon, DPAC’s President and CEO. “This funding will support the industry as it adapts to the changing market and better position it to contribute to the strong Canadian food supply that Canadian consumers want.” 

The Canadian dairy sector has been hard hit by the recent trade agreements, a situation that has only been made worse by pandemic-related market disruptions. Combined, access under CETA, CPTPP and CUSMA represent 10% of the Canadian market, resulting in annual losses of $300 million for Canada’s dairy processors at full implementation. 

While the industry welcomes today’s announcement, it does not address the impacts of CUSMA on Canada’s dairy processors. This compensation, as well as the allocation of dairy import permits—known as tariff-rate quota—to dairy processors, will be necessary to ensure the long-term viability of Canada’s dairy sector, and that the Government lives up to its commitment of ‘full and fair compensation’. DPAC will continue to work with the Government of Canada to ensure that this commitment is brought to fruition for all three trade agreements.

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ABOUT THE DAIRY PROCESSORS ASSOCIATION OF CANADA

The Dairy Processors Association of Canada is Canada’s national industry association representing the public policy and regulatory interests of the Canadian dairy processing industry. DPAC’s members represent some of the most recognized brands in Canada, providing work to over 24,500 Canadians and contributing $16 billion to the national economy.