2. Key Issues
1.
2.
3.
4.
5.
6.
7.
8.
CETA – implications
TPP – potential implications
Pricing – increase proposed for Feb 2014
Yogurt (2a), Fine Cheese (3a)
Mozzarella (3d)
DDPIP to DIP – innovation
proAction – proving good stewardship
Transportation
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3. Leading to the CETA Deal
Warned of potential give in Jan. 2013 at federal lobby day
Assurance of support for SM provided
Warned of potential give in at provincial lobby in April 2013
Assurance of support for SM provided
Agreement in principle mid-July … warned at same time of
potential ….DFO lobby effort due to concerns
Producers advised of deal Oct 16th
Included in Throne speech Oct 17th
Deal signed October 18th
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4. CETA
20,000 tonnes cheese under previous agreement
~13,300 filled by EU
Total access increased to 37,700
17,700 in additional access (16,000 specialty cheese and
1,700 conventional) to the EU
Additional access = 2.25% share of current quota
Implementation period of five years?
Geographic indicators
TRQ administration – BalanceCo.?
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5. Our Ask
10 year phase in?
Border protection – Fluid milk standards, pizza
kits, supplementary import permits
Tariffs on cheese portion of pizza kits came into
effect on November 29th
Much of the supplementary permits are for kosher
cheese ….. should be able to supply/manufacture
here under DIP
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6. TPP
Will further access be granted?
N.Z., Australia, the U.S. want access
Reaching an agreement more difficult than bi-lateral
….. more players, more untouchables
Trade – success is gaining access to another market
and protecting your own
Two things others will want: 1) access and/or 2) tariff
reductions
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7. What do we know about TPP?
Canada joined in October 2012
Discussions ongoing … discussions at APEC
Conference in Bali in early October 2013
Reported agreement in principle in a number of
areas, with the exception of agriculture?
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8. What we would like
That MPs know what is being discussed or offered
That the dairy industry is consulted during the
discussions
Whether access and/or tariff reductions are being
discussed and if they are to what degree
The target date for completion
What does support for SM mean?
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9. Milk for Growth
Getting the right milk to the right plant at the right
time
DIP – innovative products, no % cap on growth, not
crystalized into PSQ, initial price discount
Artisan Program – innovative, 300,000 liters per year
Fines cheeses & yogurt – current status measured …..
3 million liters per year or five per cent of overall
market share
Shredded/block mozzarella. – promotional efforts for
the pizza market
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10. Fluid Milk
Stabilized after a period of decline
Reason for decline? – cross border
shopping/distribution, imported flavoured milk
Active measuring of border town activity taking
place– price, quantity, convenience outlets, major
retailers …. Results from a Dec 18th visit to NY:
Major signs welcoming Canadian shoppers
Milk as low as $1.88/gallon (any fat level) compared to
~$5 at Canadian based Costco stores
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11. Feb 1 Milk Price Increases
1% increase on industrial (62% of which 18% is special
classes)
1.347% increase on fluid (38%)
~11% of total BF market and 18% of SNF at special class
pricing
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12. Transportation
Payment to transporters rising primarily due to lower
volume (-1.4%)
Metrics
Review of existing routing (km)
Optimization software being investigated
Trailer fill rates .. inefficiency could lead to termination
Cost control considerations:
Constraint evaluation – (No Sunday, 3x, 2” valves, non-trailer
access, etc. findings presented to 2014 Policy Conference)
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13. Quota Policies
Intention to review all policies on a periodic basis,
e.g. every 5 years
Policy review process to be presented at 2014 Policy
Conference
Following finalization of review policy review process,
conduct a quota policy review …. ideally in a P5
context
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14. What is DFC’s proAction?
Four New Areas
Animal Welfare/Care
Traceability
Biosecurity
Environmental Sustainability
Also discussed under the proAction banner
CQM
Harmonization of provincial quality standards – Grade
A, inhibitors, bacteria, abnormal freezing point, SCC, e.g.
400,000 SCC standard
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15. What is the public message you want to
portray about dairy farmers/farming ?
Image management
In addition to the following, how do you want to be known?
Dairy farmers are good stewards of:
animals
land
water
We take pride :
Producing safe, high quality milk
Consistently providing enough milk for dairy products at fair
prices
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16. Traceability
Three pillars
1. Animal identification (in place)
2. Premises identification (in place)
3. Animal movement (national system based on CCIA and
ATQ systems)
Animal movement tracking to be mandated by
federal government
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17. Biosecurity
National program developed for dairy
Reduces risks associated with the transfer of disease
or disease pathways
Disease transfer pathways are well understood by
dairy farmers
Buyer beware of high risk animals (SCC, Johnes)
Transfer of disease through farm visitors (person or
vehicle)
Transfer from one animal to another on farm
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18. The environment
An Environmental Farm Plan has been developed by
many dairy farmers
This type of approach agreed to at the DFC
environmental conference in October 2013
Primarily about water protection ….manure, fuel, etc.
… and soil conservation
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19. Why animal care assessments
Positively influence consumers with credible
programs
Competing with those concerned about animal rights
(activists and others) to get our message out
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20. DFO Statement
DFO expects that dairy farmers licenced to produce
and market milk provide humane care and handling
according to the Dairy Code of Practice. DFO
promotes compliance with the Code of Practice
through education and extension, inspections and
cooperative efforts with stakeholders and Farm and
Food Care Ontario.
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21. Animal Welfare/Care
There are four primary considerations:
1. dry, clean and comfortable (already part of Grade A)
2. adequate feed and water, colostrum for calves
(adequate feed and water is already part of Grade A)
3. only accidental injuries – assessment of hock, neck and
hooves against a guidelines ….. if prevalent, what is
causing the injuries? (major issues currently assessed
through Grade A inspection process)
4. pain control – dehorning, lifting downer animals
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22. Canadian Coalition for Farm Animals
Their message to consumers? ..don’t buy dairy
products with ingredients from intensively farmed
dairy cows. Choose products that are certified
organic …eliminate or reduce dairy products are
replace with tofu, beans, calcium fortified beverages
What can we and other supporters do to counter
these assertions?
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