Canadian consumers pay for milk to sustain dairy farmers. USian taxpayers provide 73% of diary farmer income in a quota system that allows 2% imports.
Not to mention no one gets raw milk off a farm in the stores so think about how much the profit motivated middleman I'm creases prices. Saputo, now international, wants US milk in Canada so they can bypass Canadian farmers and maximize profits. I won't buy shares in that company; won't buy their product.
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Dairy is big business in our area... and the other farmers are jealous. Imagine how easy it is for that farmer to set out their financial plan. They know how much they're going to produce (they bought their quota) and they know that it's all going to be sold and for exactly how much.
ReplyDeleteIt can be a little ridiculous at times. We have a dairy producer who has also a dairy processing. So she milks, and then sells to DFO when they bring a truck in, then that truck goes to the other end of the farm and then they essentially 'buy back' their own milk so they can process it.
It's not just milk. The chicken industry in Ontario is heavily regulated too. We have a local farm who can't raise enough to meet demands, because as a small farm, they're limited to 300 birds. After that, the rules change to large scale commercial and it's a while different world. And they raise amazing birds. The size of turkeys. I've had them clip 7kg.
ReplyDeleteThe milk thing is one I hope they don't cave on. The only one who loses in that race to the pricing bottom are the farmers who work their assess off to produce it. None of them are rolling in cash.
There is the artisanal option for chickens if I recall. I have a couple calls with some of the farmers in town to understand. It's tougher for us here as the poultry abattoir is closer to you ... so many here don't like sending them off to Emo or Oxdrift
ReplyDeleteRyan Moore Yeah, and we came SO close to losing Oxdrift. I mean literally HOURS. CLFC threw some support and incorporation assistance behind the group who saved it. If it had closed, it never could have re-opened. So many emergency board meetings that week ...
ReplyDeleteThey were talking about loosening the regs around chicken, province did some requests for input a couple of years ago. Not sure if anything serious will ever come of it though. Probably just another study for the sake of saying they did one.
I only see established farmers doing well, not people buying property and starting to farm. And even if you do have a specific income, there are always expenses that are unexpected. Then there's disease and weather.
ReplyDeleteChris Pollard I hope they don't cave on financial law (which protected us in 2009) or privacy (Canadian information stored on US servers) as well as dairy. They can flex but regulate it.