Current Issue
Eliminating regulatory loophole that allows diafiltered milk to enter Canada from the U.S. undercutting domestic dairy farmers
Issue and its relevance
Imported diafiltered milk from the U.S. is costing Canadian dairy farmers $231 million annually. The industry is struggling to keep their operations going because the government has yet to resolve a regulatory loophole that allows the U.S. to import diafiltered milk that goes against cheese composition standards.
The issue at hand is that food processors in Canada are able to buy diafiltered milk at a cheaper price to produce cheese that aligns with the Canadian cheese standards. The biggest problem is that the Canadian Border Services Agency considers diafiltered milk a protein ingredient, while the Canadian Food Inspection Agency says diafiltered milk is milk. This inconsistency of what is classified as milk needs to be …show more content…
Canadians currently already pay relatively more for milk, cream butter and cheese in comparison to other countries. With this change in regulation Canadian consumers are looking at a price increase. It will cost more for food processors to make cheese and in order to compensate for the cost they will have to increase the price of cheese.
Food Processors of Canada
- This stakeholder is against changing the import regulation of diafiltered milk between the U.S. and Canada. For food processors milk is just a raw material they use to extract ingredients they want to make their products. If they are able to buy it at a cheaper price with the same results they do not need to spend the money on Canadian milk. With the passing of the regulation eliminating U.S. imports of diafiltered milk it will affect food processors cost significantly. Food processors will be forced to buy milk at higher domestic prices which will inflate production costs.
Foreign Farm
Eliminating regulatory loophole that allows diafiltered milk to enter Canada from the U.S. undercutting domestic dairy farmers
Issue and its relevance
Imported diafiltered milk from the U.S. is costing Canadian dairy farmers $231 million annually. The industry is struggling to keep their operations going because the government has yet to resolve a regulatory loophole that allows the U.S. to import diafiltered milk that goes against cheese composition standards.
The issue at hand is that food processors in Canada are able to buy diafiltered milk at a cheaper price to produce cheese that aligns with the Canadian cheese standards. The biggest problem is that the Canadian Border Services Agency considers diafiltered milk a protein ingredient, while the Canadian Food Inspection Agency says diafiltered milk is milk. This inconsistency of what is classified as milk needs to be …show more content…
Canadians currently already pay relatively more for milk, cream butter and cheese in comparison to other countries. With this change in regulation Canadian consumers are looking at a price increase. It will cost more for food processors to make cheese and in order to compensate for the cost they will have to increase the price of cheese.
Food Processors of Canada
- This stakeholder is against changing the import regulation of diafiltered milk between the U.S. and Canada. For food processors milk is just a raw material they use to extract ingredients they want to make their products. If they are able to buy it at a cheaper price with the same results they do not need to spend the money on Canadian milk. With the passing of the regulation eliminating U.S. imports of diafiltered milk it will affect food processors cost significantly. Food processors will be forced to buy milk at higher domestic prices which will inflate production costs.
Foreign Farm