There’s a dire warning from New Brunswick’s dairy industry if supply management is scrapped as a result of a new NAFTA deal.
With officials busy hammering out a new trade agreement, some farmers are worried about their future.
Paul Gaunce has operated his dairy farm just south of Sussex for 38 years and serves as the chairman for the Dairy Farmers of New Brunswick.
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Gaunce has this warning if the Trudeau government bends on supply management.
“We’ll be gone. There will be no milk production in New Brunswick,” Gaunce states.
Decades ago, supply management for dairy producers was introduced in Canada to help even the cost of production throughout the entire year, and to ensure supply for consumers.
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Gaunce claims supply management serves both producers and consumers well throughout the world.
He says farmers in the U.S. and other jurisdictions receive hefty subsidies to produce dairy products, making it impossible for Canadian farmers to compete in an open market.
“I have a son who’s 29 and wants to farm, and he may not have a future. I’ve got a granddaughter who’s eight-months-old who may not have a future here — that’s the part that really bothers me.”
Gaunce says the fact dairy products are much less expensive in U.S. border towns is misleading.
“Every store along the border sells mils as a loss-leader. Yes, it’s cheap, but drive down further, drive to Florida or Texas, the price of milk is higher.”
When it comes to NAFTA negotiations, Gaunce agrees dairy is a very small player but says there’s much more to consider.
“A huge percentage of the social fabric of this country will be ruined if that one per cent is given up — that’t the big picture he’s got to look at.”
Gaunce says his industry has had close calls but he remains hopeful the current system will remain intact.