International agreement could hurt Saskatchewan dairy producers

SASKATOON – Many Saskatchewan dairy producers are concerned their domestic market may shrink due to a possible trade agreement, according to their provincial advocacy group. SaskMilk’s policy manager Joy Smith says producers will have their eyes on upcoming Trans-Pacific Partnership (TPP) Agreement talks planned in Atlanta.

The trade pact includes 12 North American and Asian countries, including Canada, the U.S. and Japan.

“There are countries in the TPP that are interested in having more access to Canada and so they’ve been pushing for that quite hard,” said Smith. Currently she estimates that five per cent of dairy products on Canadian shelves are imported tariff free from out of country.

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“We would like to see no increase of access to Canada, the fact is that we already allow quite a bit of tariff free access to Canada in dairy,” she added.

The TPP deal is described as the “most ambitious trade initiative currently being negotiated in the Asia-Pacific region,” according to a government of Canada website.

“The TPP will increase Canada’s foothold in Asia, a region that is expected to contain two-thirds of the world’s middle class by 2030 and one half of global GDP by 2050,” reads the statement.

Smith warns that if Canada allows more access, the effects could be felt significantly in Saskatchewan’s dairy sector.

“That could result in a decrease in the number of farms, a decrease in the production on farms, a decrease in jobs, in GDP, in tax revenues and all the things that fall out of that,” said Smith.

Melvin Foth is one dairy producer who agrees with SaskMilk’s assessment. He owns a dairy farm near Hague, Sask. and says opening up the market could affect the industries stability.

“It would be definitely concerning and it would have a negative impact,” said Foth, who operates one of the province’s biggest dairy farms, with 400 head of dairy cattle.

“We want to ensure that the bulk of our dairy products are from milk made in Canada recognizing that there is room for imports,” he added.

The dairy farming industry produces roughly 4,500 jobs in Saskatchewan, according to Smith. Eight workers have full-time employment at Foth’s farm, which spans around 3,000 acres. He said he still plans on expanding his business, but will keep a watchful eye on negotiations to see if the decision pays off.

“We have something at stake here so we will keep an eye on it,” said Foth.