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(Toronto Star)   How Trump's USMCA negotiations could cause a baby formula crisis by tossing Class 7 dairy pricing from NAFTA   (thestar.com) divider line
    More: Vintage, Milk, Feihe International Inc. Never, baby formula, Canadian dairy, Canada's supply management system, milk powder, infant formula, Furious American dairy farmers  
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1528 clicks; posted to Politics » on 20 May 2022 at 4:35 AM (6 weeks ago)   |   Favorite    |   share:  Share on Twitter share via Email Share on Facebook



17 Comments     (+0 »)
View Voting Results: Smartest and Funniest
 
2022-05-19 10:37:48 PM  
 
2022-05-19 10:40:24 PM  
"Round wheel invented"
 
2022-05-19 10:57:34 PM  
Well. Well well well.
 
2022-05-20 4:38:58 AM  
i.redd.itView Full Size
 
2022-05-20 4:40:17 AM  
Fark user imageView Full Size
 
2022-05-20 4:57:41 AM  

ox45tallboy: 3 1/2 months later...

[Fark user image 850x470]

https://www.agri-pulse.com/articles/11489-us-and-canada-strike-trade-deal-class-7-dairy-policy-to-be-terminated


So it was more like a Class 7 Full-roaming Vapor?

slashfilm.comView Full Size
 
2022-05-20 7:02:41 AM  
No, subby. It was the best and most comprehensive trade deal ever. The Toupee Laden Howler Monkey was very clear on that point.
 
2022-05-20 7:37:58 AM  
Fark user imageView Full Size


R.I.P.
 
2022-05-20 8:18:37 AM  
Let's pretend the article says that this was entirely a Trump-led initiative.
 
2022-05-20 8:28:40 AM  

GoldSpider: Let's pretend the article says that this was entirely a Trump-led initiative.


This is true. The entire GOP is complicit, not just Trump
 
2022-05-20 8:41:25 AM  
Well, the important thing is Trump made sure he wasn't in power when the consequences of his stupid policies finally came to fruition, so everyone can blame it on the current guy instead.

Just like how Bush tanked the economy in 2008, and then left just in time for everyone to blame the black guy.
 
2022-05-20 8:59:15 AM  

GardenWeasel: GoldSpider: Let's pretend the article says that this was entirely a Trump-led initiative.

This is true. The entire GOP is complicit, not just Trump


FTFA: "Democratic Senator Chuck Schumer has been on the warpath about this since Class 7 came into effect, noting that Canadian exports of skim milk powder, rich in protein and ideal for baby formula, more than tripled in the first year of its existence, while dairy farmers in Cayuga County saw the export potential for their skim milk powders, to Canada and Mexico, shrink dramatically."

Yeah those Republicans...
 
2022-05-20 10:04:27 AM  

GoldSpider: Let's pretend the article says that this was entirely a Trump-led initiative.


The elimination of NAFTA was absolutely a Trump initiative. Trump wanted to prove he could make the "best deal" and he hyped up NAFTA as a "disaster".

GoldSpider: FTFA: "Democratic Senator Chuck Schumer has been on the warpath about this since Class 7 came into effect, noting that Canadian exports of skim milk powder, rich in protein and ideal for baby formula, more than tripled in the first year of its existence, while dairy farmers in Cayuga County saw the export potential for their skim milk powders, to Canada and Mexico, shrink dramatically."

Yeah those Republicans...


Okay, it's a little more complex than that. Schumer wanted NY dairy farmers to have access to the Canadian market, specifically with their raw milk, which is absolutely something that was in the USMCA. However, that's not what is causing the current problem. The shortage due to the plant closure has been exacerbated by *other* provisions of the USMCA, albeit in the same category. See here:

https://ustr.gov/trade-agreements/free-trade-agreements/united-states-mexico-canada-agreement/fact-sheets/market-access-and-dairy-outcomes

Key Achievement:  Canada's Milk Class Pricing System
Six months after entry into force of the USMCA, Canada will eliminate milk price classes 6 and 7.  Canada will ensure that the price for skim milk solids used to produce nonfat dry milk, milk protein concentrates, and infant formula will be set no lower than a level based on the United States price for nonfat dry milk.  Canada has also committed to adopt measures designed to limit the impact of any surplus skim milk production on external markets.  These measures include resumption of its program to use skim milk domestically as animal feed and a new commitment to cap its exports of skim milk powder, milk protein concentrates, and infant formula.  For skim milk powder and milk protein concentrates, the aggregate export cap will be 55,000 MT in the first year after the agreement enters into force, falling to 35,000 MT in the second year.  Exports that exceed this threshold will face an export surcharge of C$0.54 per kilogram.  For infant formula, the export cap will be 13,333 MT in the first year, increasing to 40,000 MT in the second year.

Basically this part says that Canada has to use its excess skim milk as animal feed so that it won't flood the whey powder market, and it limits how much whey powder (main ingredient of baby formula) and retail baby formula it can export to the US. This didn't come from Schumer (he wanted Canada to buy American milk), this came from the agribusiness lobbyists wanting a oligopoly on baby formula in the US without having to compete against cheaper Canadian products. They would be free to raise prices as the only possible competition (imports) would be severely limited.

Upstate NY commercial dairy farmers don't make whey powder or skim milk powder or baby formula. They make milk. They then sell this milk to agribusiness factories that turn it into products like whey powder and baby formula. Schumer's goals were not the same as the agribusiness lobbyists' goals. The provisions are separate, and Canadians buying American milk didn't cause or even exacerbate this problem.
 
2022-05-20 10:11:00 AM  

ox45tallboy: The elimination of NAFTA was absolutely a Trump initiative. Trump wanted to prove he could make the "best deal" and he hyped up NAFTA as a "disaster".


Stipulated.

ox45tallboy: Okay, it's a little more complex than that. Schumer wanted NY dairy farmers to have access to the Canadian market, specifically with their raw milk, which is absolutely something that was in the USMCA.


It always is.

But TFA says Schumer took specific exception to the drop in export of skim milk powder relative to Canada's exports, not just raw milk.

There's plent of shiat to hang round TFG's neck, but this avenue is a stretch.  Our domestic formula production in the hands of 4 companies, with the one that got shut down representing 40% of domestic production, seems to be the bigger issue here.
 
2022-05-20 11:16:38 AM  

ox45tallboy: (he wanted Canada to buy American milk)


FWIW Canada hates American milk. Hates just about American dairy everything.

You stuff your farm animals with way too much hormones and steroids, your beef and dairy products come out like disgusting chemical cocktails. Can't possibly be good for human consumption, let alone health. Since the 90s the EU has banned American beef for this reason.

/American imports account for about 15% of the Canadian beef & dairy market (~230k metric tons). Canada exports slightly more to the States
 
2022-05-20 11:21:42 AM  

GoldSpider: But TFA says Schumer took specific exception to the drop in export of skim milk powder relative to Canada's exports, not just raw milk.


I'm not going to say anything bad about Jennifer Wells as a journalist. But she is Canadian, and viewing the issue from a Canadian perspective. Let's look at the actual letter she references from Chuck Schumer to Robert Lighthizer.

https://www.schumer.senate.gov/newsroom/press-releases/schumer-reveals-nafta-negotiations-give-cayuga-county-dairy-farmers-and-milk-producers-rare-shot-to-undo-canadas-unfair-trade-practices-but-feds-must-act-now-to-fix-policies-that-have-plagued-cny-in-recent-years-senator-relaunches-major-push-to-level-the-playing-field_boost-cny-ag--jobs

He directly references the excessive production of milk powder by Canadian producers, but he doesn't call for the export limitations seen in the final USMCA - he just asks for a "level playing field", which I can see a Canadian reading as "let's force Canada to limit exports" rather than "let's force Canada to stop undercutting American producers".

GoldSpider: There's plent of shiat to hang round TFG's neck, but this avenue is a stretch.  Our domestic formula production in the hands of 4 companies, with the one that got shut down representing 40% of domestic production, seems to be the bigger issue here.


Oh no, he takes the full responsibility for every single failure of the USMCA. He demanded all the credit, claiming that *he* made the "best deal", so he gets the responsibility as well.

NAFTA was fine already, it just had a few things (like dairy) that needed to be renegotiated due to changing circumstances in trade markets. But he didn't want that, he spent time and energy claiming NAFTA was "so unfair" and wanted his name all over "the best deal". Which turned out to be NAFTA with a few band-aids here and there but with a whole new name so he could pretend like it was all his doing.
 
2022-05-20 11:37:20 AM  

Ishkur: FWIW Canada hates American milk. Hates just about American dairy everything.


Oh yes, I know.

Ishkur: You stuff your farm animals with way too much hormones and steroids, your beef and dairy products come out like disgusting chemical cocktails. Can't possibly be good for human consumption, let alone health. Since the 90s the EU has banned American beef for this reason.


There's actually more to it than that. See, Canada doesn't subsidize dairy farmers the way the US does. Canada makes sure their farmers get paid through price floors on raw milk rather than just giving their farmers more money to make up for crappy prices. This means that absent tariffs, American dairy farmers could sell their raw milk in Canada and undercut the price floors, while still receiving subsidies from the US government. It's truly unfair competition to Canadian dairy producers. But the two countries are deeply invested in their way of doing things and unlikely to change, so you have to have some really weird trade rules that on the face seem just downright silly.

Yes, American dairy producers use hormones in dairy cows, specifically synthetic BST. Did you know that Health Canada has determined rBST posed no risk to humans? People simply can't absorb or use the tiny amounts of the hormone that make it into the milk. The reason it's banned in Canada has nothing to do with human health, it's because it's not great for the cow. Cows taking rBST more likely to get conditions like mastitis or produce so much more milk that it becomes extremely painful for the cow (if you've ever seen a dairy cow produce 80 lbs/38 kilos of milk in *one* of the twice-a-day milkings, you'd know what I was talking about). I can't argue with Canada wanting to ban it for those reasons.

This also makes it hard to ban the milk from cows taking the hormone - even Canada's own health experts say it's fine for humans. It's a matter of animal welfare, which is something the US has seldom been the leader on.
 
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