Some B.C. dairy farmers are closely watching NAFTA negotiations as the federal government faces pressure to relax protections for the domestic dairy industry.
The situation has some wondering if Canada might change or do away with Canada’s supply management system in order to cut a deal.
The Schut family who runs a Salmon Arm area dairy farm have been following the talks hoping that Canada’s prime minister sticks to his promise to “defend supply management.”
“We’ve seen in other countries where they have tanked supply management where small farms have gone under. We would hate to see that. A lot of our friends do run small operations,” farm manager Josiah Schut said.
“It is obviously concerning because there is a lot at stake here but we are really quite confident in what Prime Minister Trudeau has said.”
However, supply management has its critics including those who blame the system for pushing up prices for consumers. MP Maxime Bernier has suggested compromising on dairy would benefit negotiations.
“The Liberals are playing politics with this crucially important trade file. They are endangering the 20 per cent of our economy that depends on trade with the U.S.,” Bernier said.
However, back in the barns, farmer John Schut argues the dairy industry is an important economic driver in its own right and the economics for consumers at the grocery store aren’t clear-cut.
“The U.S. dairy industry is subsidized, whereas, through supply management, our industry is not subsidized. So the U.S. and the European consumer is actually playing twice for their product, once through a subsidy that they pay through their taxes and once for the actual product, whereas Canadians are only paying for their products once,” John said.
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Meanwhile, the owner of an Enderby restaurant said though prices are “expensive,” he makes a point of buying Canadian dairy products for his business.
“For me, it is because I prefer the Canadian-made product. I don’t like American-made product,” Gregg Marquartdt said.
Farmers like the Schuts are clearly hoping that kind of support is enough to get their industry through the NAFTA talks unchanged.
WATCH: Why did Trump turn Canada’s small dairy industry into a big target?
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