WIENS: Defending Canadian dairy farms is worth taking a stand 

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With the increasing volatility in global supply chains, there’s never been a better time to defend Canada’s food security and sovereignty. Unfortunately, in his editorial opinion column, Postmedia’s Lorne Gunter feeds into a misleading narrative about the dairy trade with the United States and disregards the strength and stability supply management delivers for Canadians.

Under several trade agreements — chief among them, the Canada-United States-Mexico Agreement (CUSMA) negotiated with the first Trump administration — a large quantity of dairy products enter Canada tariff-free until they reach the tariff rate quota.

Under CUSMA, the U.S. can send 49 million litres of milk to Canada every year, before a single drop would have a tariff imposed. And that tariff-free amount is set to continue to grow gradually over the next 13 years.

Canada presently has a $520-million dairy trade deficit with the U.S. and American dairy exports to Canada have increased by 67% since 2021, to $877 million in 2024. Canada is America’s second-largest dairy customer and is also its largest customer per capita.

Supply management has delivered food security and sovereignty to Canada for more than six decades by producing dairy here for Canadians. It aligns production with demand to deliver high-quality, diverse products at stable prices for consumers and a fair return for farmers. It also strengthens our economy, with 339,000 Canadian jobs fuelled by the supply-managed dairy, poultry and egg sectors and $30.1 billion contributed to Canada’s gross domestic product.

If anything, the recent trade dynamics show us we need to be able to take care of ourselves. Supply management means we have a steady supply of key food items, like dairy, made here when we need it. It protects consumers from shortages driven by supply chain disruptions, diseases or natural disasters. For example, egg prices in the U.S. skyrocketed this year because of avian flu. Canadians were not impacted thanks to the strength of supply management.

Moreover, the price of supply-managed products is generally in line with or below inflationary trends in Canada. In December 2024, the 12-month average dairy consumer price index increased 2%, compared to a 2.7% increase in food generally.

In 2024, Canadian milk averaged $1.64 per litre, close to the U.S. price of $1.44. Over the same period, yogurt, cheese and butter prices were similar or lower in Canada compared to the U.S. It should also be noted that countries such as the United States heavily subsidize their dairy industry for production, forcing taxpayers to pay twice for their milk (once at the store and again through their taxes). In contrast, Canadian dairy farmers do not receive similar production subsidies.

With over 9,000 dairy farms spread across every province, the benefits of supply management extend far beyond any single province or region. Gunter overlooks the importance of supply management to the vibrancy of rural communities from coast to coast. As a Western farmer from a small community in Manitoba, I know family-owned dairy farms bring stability to local economies by creating jobs in not just agriculture, but transportation, veterinary care, nutrition, etc.
Canadians can also find local dairy products on store shelves in all provinces. As dairy farmers, we are proud to take a Team Canada approach, focused on doing what we do best — producing quality Canadian milk for Canadians. And dairy farmers have been heartened by the tremendous support consumers have expressed by choosing Canadian products.

In this time of increasing global volatility, the facts demonstrate that supply management continues to prove its value, delivering stability, security and high-quality local food on our tables in every part of this country. Canadians have every reason to stand behind it.

David Wiens is a dairy farmer and president of the Dairy Farmers of Canada