Wednesday, April 5, 2017

Another Mission For Trump

President Trump has a knack of doing the impossible and here is another task for him to resolve between the U.S. and Canada.
From jsonline, Milwaukee: Dairy farms in Wisconsin and other states could be forced out of business as early as May because of a trade dispute that has halted the export of their milk to Canada.
About 75 farms in Wisconsin have already been told that, in less than 30 days, Grassland Dairy Products of Greenwood will no longer buy their milk – leaving the farms without a place to ship their product in an already oversupplied market.
At issue is a U.S-Canada trade dispute over what’s called “ultra-filtered milk,” a protein liquid concentrate used to make cheese. Until recently, it had entered Canada duty-free from the United States.
Canadian dairy farmers objected, resulting in Ontario and other provinces applying import taxes.
“The (trade) rules that are in place are not being enforced, and this is causing revenue losses estimated at $231 million per year for Canadian dairy farmers,” the trade group Dairy Farmers of Canada said in 2016.
The losses for the dairy industries in Wisconsin and New York alone – in not having Canada as a market for ultra-filtered milk -- could run into hundreds of millions of dollars, according to the National Milk Producers Federation, an Arlington, Va., trade group.
“More broadly, tens of thousands of dairy farmers will be affected by the larger scope of what Canada is doing, which is using pricing policy to offload milk powder in global markets where it will be competing with U.S. exports," said Chris Galen, an NMPF senior vice president. "This is truly a national concern.”
For some Wisconsin dairy farmers, the pressure is on to find another milk buyer in a market already saturated with their product. Milk truck drivers and others face losing their jobs, as well.
Dairy farmer Jennifer Sauer, of Waterloo, said she and her husband Shane are urgently seeking a processor for the milk from their 120 cows on their third-generation family farm.
The April 1 letter canceling their milk contract because Grassland lost its Canadian business, shook them badly....
Legislators say they're bringing the issue to President Trump, who has pledged to renegotiate the North American Free Trade Agreement with Canada and Mexico.
“Our state’s dairy farmers are some of the best in the world, and they should not be the victims of a trade dispute they didn’t start," U.S. Sen. Ron Johnson, R-Wis., said in an e-mail. "I urge the administration to work with the Canadian government and swiftly find a way to resolve this matter before hardworking Wisconsin farm families are hurt."
Dairy processors across Wisconsin and New York have told their farmers that the Canadian market for ultra-filtered milk has dried up, according to the National Milk Producers Federation.
“Canada’s protectionist dairy policies are having precisely the effect Canada intended: cutting off U.S. dairy exports … to Canada despite long-standing contracts with American companies,” Jim Mulhern, NMPF president and chief executive officer, said in a statement.
Here's hoping Trump can pull a rabbit out of his top hat, especially since most dairy farmers tend to be conservative and Trump supporters.

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