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What a way to run a dairy industry

So, let me get this straight.

In Canada, the government restricts the overall supply of dairy — controlling both domestic production and imports. As a result, Canadian dairy farmers are quite well off, the cost (about 40% higher) is spread out amongst consumers, but the consumers are generally okay with paying higher prices to have a healthy dairy industry that includes both large producers and small mom-n-pop concerns.

In the US, dairy producers are encouraged to produce as much as they can, leading to a glut on the market, prices crashing below the cost of production, bankrupt farms, rising suicide rates, and farmers literally dumping 100 million gallons of milk last year … and then the government gets into various payment schemes to cover some of them them for their losses, leading to an incremental tax burden that everyone hates.

And Canada still ends up importing more milk than the US imports. And US restrictions on dairy imports from Canada remain significantly more stringent as a percent of total domestic production than the Canadian ones.

So, naturally, Trump (along with congresscritters from dairy states) blames the whole situation on Canada and is ticked off that the Canadians are being really, really unfair.




Why Canadian milk infuriates Donald Trump | World news | The Guardian

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5 thoughts on “What a way to run a dairy industry”

  1. "In the Australia, dairy producers are encouraged to produce as much as they can, leading to a glut on the market, prices crashing below the cost of production, bankrupt farms, rising suicide rates, and farmers literally dumping 100 million gallons of milk last year … and then the government gets into various payment schemes to cover some of them them for their losses, leading to an incremental tax burden that everyone hates."

    It's weird how the problems of Conservative run countries are so similar …

  2. The price stays more stable in Canada, so that helps with the consumer part. When you see it go up and down which I do remember it doing in the US that makes consumers notice and get angrier.

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