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Agriculture

How Canadian Dairy Farms Can Adjust to New Dairy Demand

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How Canadian Dairy Farms Can Adjust to New Dairy Demand

Many changes occurred around the world as a result of the coronavirus pandemic. In Canada, while schools and businesses closed, consumers flocked to the supermarkets to buy essentials.

Perishable goods flew off the shelves, resulting in limits being placed on items like dairy and poultry. The standard distribution system schedule put in place for dairy products could not keep up with buyers’ increased shopping.

While retail demand from grocers skyrocketed, orders from the foodservice industry plummeted. This has resulted in unforeseen fluctuations in the dairy market.

Hotels, restaurants, schools and eateries are closed or operating at limited capacity. As a result, there is now an enormous surplus of milk that has nowhere to go. Farmers are not equipped with storage spaces to accommodate the excess supply. Unlike agriculture products like potatoes, milk has to be sold immediately or risk spoilage.

Cows will continue producing milk, regardless of fluctuations in the market. While farmers have the option to reduce the size of their herd or change diet or nutrition, these things could prove detrimental when the market stabilizes.

The Supply Management System

A supply management system controls production quotas and imports for Canadian dairy, chicken, turkey and eggs. It was established in the1970s to coordinate production and demand while simultaneously controlling imports. By operating under this method, prices are stabilized for both producers and consumers.

A national agency represents each industry, and they are in charge of setting production levels that match provincial demand. Farmers in each province are allocated production quotas that are meant to prevent surpluses or shortages.

The original quotas were based on consumer needs pre-pandemic. As a result of these unforeseen events, farmers must now adjust to the new Canadian dairy demand. Here are four main ways farmers can adapt to the changing times.

  1. Dump the Milk

Producers say that discarding raw milk is inevitable at this stage. Farmers are reporting that they have been asked to take turns dumping milk. Although they’re paid for it, the waste could amount to as much as 5 million litres every week.

This disposal method is unsustainable and should only be utilized while the market is above capacity. Cows must continue to be milked to keep them comfortable and healthy, and production must continue to ensure product availability in retail stores.

  1. Donate to Food Banks

Rather than dumping milk, some farmers have begun donating to food banks to support Canadians in need. While this is a positive form of dispersing the milk surplus, it has the potential to overwhelm food banks that may not have the storage capacity to support this influx.

Additionally, the raw milk provided from farmers must be processed, which complicates the standard donation process.

  1. Improve Operations

Dairy farmers should focus on improving operations to become more efficient and cost-effective. Many producers have begun investing in updated equipment and robotics to save time and money.  Competition is set to increase as a result of import growth projected for the next decade. To maintain a market edge, operations should be improved and simplified wherever possible.

  1. Expand or Retire

In 2019, the Canadian federal government announced an aid package valued at $1.75 billion to compensate supply-managed dairy producers over an eight-year period. The Dairy Direct Payment Program is one part of this aid package and provides $345 million payments as compensation during 2019 and 2020.

The aid package was proposed as a result of import shifts. The Canadian government has opened part of its domestic market to foreign producers as part of several free-trade negotiations. To adapt to increased competition from foreign products, Canadian producers should plan to expand their operations or retire. Larger farms will be able to sustain demand while simultaneously upgrading their methods to be constantly improving.

Smaller producers may not be able to afford the necessary production updates to keep up with competitors.

Future Demand

These are unprecedented circumstances. As schools, businesses and restaurants reopen, dairy demand will increase. With indoor capacity requirements and shifts in consumer trends, consumption levels will undoubtedly continue to fluctuate.

While farmers should take steps to dispose of surplus responsibly, they should not halt production or decrease their operation size.

Read more from Emily Folk

I’m Emily Folk, and I grew up in a small town in Pennsylvania. Growing up I had a love of animals, and after countless marathons of watching Animal Planet documentaries, I developed a passion for ecology and conservation.  You can read more of my work by clicking this link: Conservation Folks.

Canadian Federal Government Taking Measures to Reduce Impact of COVID-19 on Agriculture

I’m Emily Folk, and I grew up in a small town in Pennsylvania. Growing up I had a love of animals, and after countless marathons of watching Animal Planet documentaries, I developed a passion for ecology and conservation.

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Agriculture

Health Canada indefinitely pauses plan to sell unlabeled cloned meat after massive public backlash

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From LifeSiteNews

By Clare Marie Merkowsky

Health Canada has indefinitely paused its plan to allow unlabeled cloned meat in grocery stores after thousands of Canadians, prominent figures, and industry leaders condemned the move.

Health Canada is pausing its plan to put unlabeled cloned meat in Canadian grocery stores, following public outcry.

In a November 19 update on its website, Health Canada announced an indefinite suspension of the decision to remove labels from cloned meat products after thousands of Canadians condemned the plan online.

“The Government of Canada has received significant input from both consumers and industry about the implications of this potential policy update,” the publication read. “The Department has therefore indefinitely paused the policy update to provide time for further discussions and consideration,” it continued, adding, “Until the policy is updated, foods made from cloned cattle and swine will remain subject to the novel food assessment.”

In late October, Health Canada quietly approved removing labels from foods derived from somatic cell nuclear transfer (SCNT) clones and their offspring. As a result, Canadians buying meat from the grocery store would have had no way of knowing if the product was cloned meat.

Many researchers have documented high rates of cloning failure, large offspring syndrome (LOS), placental abnormalities, early death, and organ defects in cloned animals. The animals are also administered heavy doses of antibiotics due to infections and immune issues.

Typically, the offspring of cloned animals, rather than the cloned animals themselves, are processed for human consumption. As a result, researchers allege that the health defects and high drug use does not affect the final product.

However, there are no comprehensive human studies on the effects of eating cloned meat, meaning that the side-effects for humans are unknown.

News of the plan spread quickly on social media, with thousands of Canadians condemning the plan and promising to switch to local meat providers.

“By authorizing the sale of meat from cloned animals without mandatory labeling or a formal public announcement, Health Canada risks repeating a familiar and costly failure in risk communication. Deeply disappointing,” food policy expert and professor at Dalhousie University Sylvain Charlebois wrote on X.

Likewise, Conservative MP Leslyn Lewis warned, “Health Canada recently decided that meat from cloned animals and their offspring no longer needs a special review or any form of disclosure.”

“That means, soon you could buy beef or pork and have no idea how it was bred,” she continued. “Other countries debate this openly: the EU has considered strict labelling, and even the U.S. has admitted that cloned-offspring meat is circulating.”

“But here in Canada, the public wasn’t even told. This is about informed choice,” Lewis declared. “If government and industry don’t have to tell us when meat comes from cloned animals, then Canadians need to ask a simple, honest question: What else are we not being told?”

Likewise, duBreton, a leading North American supplier of organic pork based out of Quebec, denounced the move, saying, “Canadians expect clarity, transparency, and meaningful consultation on issues that directly touch their food supply. As producers, we consider it our responsibility and believe our governing food authorities should too.”

According to a survey conducted by duBreton, 74 percent of Canadians believe that “cloned meat and genetic editing practices have no place in farm and food systems.”

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Agriculture

Federal cabinet calls for Canadian bank used primarily by white farmers to be more diverse

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From LifeSiteNews

By Anthony Murdoch

A finance department review suggested women, youth, Indigenous, LGBTQ, Black and racialized entrepreneurs are underserved by Farm Credit Canada.

The Cabinet of Prime Minister Mark Carney said in a note that a Canadian Crown bank mostly used by farmers is too “white” and not diverse enough in its lending to “traditionally underrepresented groups” such as LGBT minorities.

Farm Credit Canada Regina, in Saskatchewan, is used by thousands of farmers, yet federal cabinet overseers claim its loan portfolio needs greater diversity.

The finance department note, which aims to make amendments to the Farm Credit Canada Act, claims that agriculture is “predominantly older white men.”

Proposed changes to the Act mean the government will mandate “regular legislative reviews to ensure alignment with the needs of the agriculture and agri-food sector.”

“Farm operators are predominantly older white men and farm families tend to have higher average incomes compared to all Canadians,” the note reads.

“Traditionally underrepresented groups such as women, youth, Indigenous, LGBTQ, and Black and racialized entrepreneurs may particularly benefit from regular legislative reviews to better enable Farm Credit Canada to align its activities with their specific needs.”

The text includes no legal amendment, and the finance department did not say why it was brought forward or who asked for the changes.

Canadian census data shows that there are only 590,710 farmers and their families, a number that keeps going down. The average farmer is a 55-year-old male and predominantly Christian, either Catholic or from the United Church.

Data shows that 6.9 percent of farmers are immigrants, with about 3.7 percent being “from racialized groups.”

Historically, most farmers in Canada are multi-generational descendants of Christian/Catholic Europeans who came to Canada in the mid to late 1800s, mainly from the United Kingdom, Ireland, Ukraine, Russia, Italy, Poland, the Netherlands, Germany, and France.

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