Canada’s dairy producers to see $1.75 billion in federal support

(Debra Murphy/RealAgriculture)

Agriculture and Agri-Food Minister Marie-Claude Bibeau announced Friday morning the federal government will compensate supply-managed dairy producers following the ratification of the Canada-European Union Comprehensive Economic and Trade Agreement (CETA) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

“Today’s announcement shows how much our government respects our producers and believes in the supply management system,” said Bibeau. “As promised, the compensation is deployed fully and fairly to allow everyone to make the best decisions based on the new market realities and their respective situations.”

Canada’s nearly 11,000 dairy producers will receive $1.75 billion over eight years, with $345 million being paid the first year as direct payments to dairy producers in proportion to their quota. According to the Government of Canada press release, the owner of a farm of 80 dairy cows, for example, would be compensated $28,000 the first year.

The Government intends to mandate the Canadian Dairy Commission to make the payments and will work with the Dairy Farmers of Canada to come up with terms and conditions for future years.

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