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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

Why the News Block on the Plight of Dutch Farmers?

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From the Brownstone Institute

BY Michael AmundsenMICHAEL AMUNDSEN  

God made the world, but the Dutch made Holland. This truism has guided Dutch identity and its republican virtue. When the ingenious Dutch reclaimed land from the sea it was for farms and these farms and farmers have fed the Dutch people, Europe and the world for centuries.

The picture displayed here is Paulus Potter’s famous work The Bull.

Created in 1647, Potter was 22 when he painted it and not quite 30 when he died. Renowned for its massive size, detailed realism including dung and flies and as a novel monumental picture of an animal, The Bull is understood as a symbol of the Dutch nation and its prosperity.

The Dutch Golden Age resulted in part from the creation of the Dutch Republic carved out by overcoming Spanish rule in the Netherlands. The little Dutch Republic became a global naval power and cultural force. The Dutch were classical liberals and believed in individual liberties like freedom of religion, speech and association.

The Dutch Republic was noted for economic vibrancy and innovation including the emergence of commodity and stock markets. The newly minted bourgeoisie spurred the first modern marketplace for artists to sell their work and freed them from the necessity of commissions from the Church and aristocracy. This is reflected in the subject matter of much Dutch Golden Age art with its depiction of everyday life. Potter’s painting is from this era.

But his work reveals another truth. The Dutch Golden age was impossible without its farms. Food is the foundation of any successful civilization, which is why the news that the Dutch government plans to shut as many as 3,000 farms for the sake of a ‘’nitrogen crisis’’ is so puzzling.

As Natasja Oerlemans of the World Wildlife Fund-Netherlands recently stated, ‘’We should use this crisis to transform agriculture.” She went on to state that the process will require several decades and billions of euros to reduce the number of animals.

So, what in fact is the issue with nitrogen and Dutch farming?

The nitrogen crisis is a bureaucratic and muddled affair which is now and will increasingly impact all of Dutch society. In 2017 a small NGO, Mobilisation for the Environment, led by long-time environmentalist Johan Vollenbroek, went to the European Court of Justice (ECJ) to challenge the then current Dutch practices that protected natural areas from nitrogen pollution.

In 2018, the ECJ decided in a court ruling that the Dutch legislation, which allowed business to compensate for increases in nitrogen emissions with technical measures and restoration, was too lenient. The Dutch high court agreed with the ruling. In so doing almost 20,000 building projects have been put on hold, stalling the expansion of farms and dairies, new homes, roads, and airport runways. These projects are valued at €14 billion of economic activity.

Farming is intensive in the Netherlands because it is a small country with high population density. According to Science magazine ‘’Dutch farms contain four times more animal biomass per hectare than the EU average.’’ But they also point out that ‘’Practices such as injecting liquid manure in the soil and installing air scrubbers on pig and poultry facilities have reduced ammonia emissions 60% since the 1980s.’’

These mitigating systems are seen as insufficient in light of the court rulings. Ammonia is part of the nitrogen cycle and is a byproduct of waste from farm animals.

The great concern of environmental bureaucrats is the so-called ‘’manure fumes’’ from livestock waste. Like methane from farting cows, manure fumes are the big thing and katzenjammer of the movement on meat and dairy.

Dutch farmer Klass Meekma, who produces milk from the goats he raises said recently, ‘’The nitrogen rules are eagerly being used by the anti-livestock movement to get rid of as many livestock farms as they can, with absolutely no respect for what Dutch livestock farms have achieved in terms of food quality, use of leftovers of the food industry, animal-care, efficiency, exports, know-how, economics and more.’’ Meekma’s goats produced more than 265,000 gallons of milk in 2019.

In many ways, Dutch farmers are the victims of their own success. Because Holland is small, farmers have needed to be innovative in the use of space which accounts for the higher levels of ‘’animal biomass’’ compared with other European countries. Success in agricultural practices and food production has produced profits and a strong economic sector for the Dutch economy. Remarkably, the Netherlands is the second largest food exporter in the world.

The biggest push against Dutch agriculture comes from the climate change community and minister for nature and nitrogen Christianne van der Wal. She said in a letter to politicians in 2021, “There is no future (for agriculture) if production leads to depletion of the soil, groundwater and surface water, or degradation of ecosystems.” She has announced new restrictions to cut nitrogen emissions in half by 2030, to meet international climate action goals.

Nobody wants runoff from farms harming streams and wildlife. But the focus on manure fumes; that is, nitrogen and ammonia seeping into the atmosphere and impacting the climate seems far more tenuous. Primeval Europe was like Africa’s Serengeti, teeming with huge herds of ungulates like aurochs. Did their farting and waste ruin the climate?

The climate is changing. The climate has always changed. Bronze Age Europe, a particularly fecund cultural period, was markedly warmer than today.

It is curious that the farming sector is the focus of rollbacks while other polluters are being treated differently. Farmer Meekma states,

“Since then (the court rulings) our country has a so-called nitrogen crisis. It’s ludicrous that the national airport Schiphol Amsterdam and lots of industrial companies have no nature permits, and farmers are now being sacrificed to facilitate these other activities.”

“It’s a real shame how farmers are being treated in the Netherlands. They are being pushed out to make room for industry, aviation, transportation, solar fields and housing of the growing numbers of immigrants.’’

Most of the “saved” nitrogen emissions from government plans will be used to offset the increased emissions from building 75,000 houses. Only 30 percent will lead to real emission reductions.

Dutch Prime Minister and WEF luminary Mark Rutte acknowledged that the move on farming would have “enormous consequences. I understand that, and it is simply terrible.”

There are many historical examples of political pressures on farming as harbingers of disaster, from Ukraine in the Soviet Union to Zimbabwe. Both were breadbaskets and exporters reduced to famine. Controlling food production is something that political ruffians always want to achieve. The nitrogen crisis is a struggle of urban ideologues versus traditional lifeways and rural self-sufficiency. Due to the war in Ukraine and supply-chain disruption from the covid pandemic, many people around the world are facing starvation. This is not the time for Europe to harm its best agricultural producer.

Dutch farmers are hip to when a nudge becomes a shove. The anti-meat ideologues want humans to subsist on grass cuttings and Bill Gates’ lab-made gunk. Dutch farmers feed the world. Their plight is ours as well.

The nitrogen crisis has the waft of so much bullshit.

Author

  • Michael Amundsen

    Michael Amundsen, PhD, is an academic and writer who has taught at universities in Europe and the United States. He has contributed to the Financial Times, the Christian Science Monitor and many other publications.

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Agriculture

Province announces massive commitments to rural Alberta

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Building up the rural Alberta economy

Alberta’s government has unveiled a plan to drive economic growth and address challenges unique to rural communities.

Rural Alberta is a driving force in the economy and the new Economic Development in Rural Alberta Plan will complement current government initiatives while supporting diversification and job opportunities in rural communities.

The five-year plan focuses on key issues in rural Alberta, including economic development-enabling infrastructure, rural business supports and entrepreneurship, support for labour force and skills development, marketing and promoting rural tourism, and rural economic development capacity building.

“Rural Albertans face unique economic barriers and challenges that require a different approach than their urban neighbours. The Economic Development in Rural Alberta Plan charts a path forward that will address these issues and build on our commitment in Budget 2022 to support sustainable growth and diversification in rural Alberta.”

Nate Horner, Minister of Agriculture and Irrigation

As one of the first tangible actions under the plan, the government has committed $125,000 to each of the eight regional economic development alliances to support long-term economic prosperity in their respective regions.

“With strengths in oil and gas, agriculture and forestry, tourism and emerging technologies, Alberta’s rural and northern communities are the backbone of our province’s economy. Actions identified in this plan will benefit rural and northern Albertans for years to come, including providing additional support to Alberta’s network of regional economic development alliances to fuel further economic growth and prosperity across our province.”

Brian Jean, Minister of Jobs, Economy and Northern Development

The Announcement

Agriculture and Irrigation Minister Nate Horner and Minister of Jobs, Economy and Northern Development Brian Jean.
Announcement begins at 2:12

Engaging with rural Albertans

The plan was created after a year of consultations. Beginning in fall 2021, Alberta’s government held targeted sessions with rural Alberta businesses and communities, in addition to Indigenous communities, to identify the specific challenges and possible solutions facing their regions.

In total, government hosted 23 virtual engagement sessions with more than 370 rural Albertans, businesses and communities, receiving 3,500 comments. At the same time, an online survey was conducted, which received an additional 919 responses.

Feedback from the sessions and the online survey helped develop the plan’s vision, guiding principles and strategic directions. These were refined and validated through a second phase of targeted engagement with the same individuals and groups in summer 2022.

“Regional economic development alliances are strategically structured to collaborate with governments to address key issues in rural Alberta. Our first step is to identify and improve economic development and enable infrastructure to support investment and growth in rural Alberta. Once we initiate this step, we can further support rural businesses, increase the labour force and market a stronger rural Alberta to Canada and the rest of the world. We look forward to moving forward with the Economic Development in Rural Alberta Plan and continued collaboration with the Government of Alberta.”

Gerald Aalbers, chair, Northeast Alberta Information HUB

“As a leading advocate for our province’s towns and villages, Alberta Municipalities is pleased to see the provincial government focus on the unique needs of Alberta’s smaller and more remote communities. We welcome efforts to grow and diversify our province’s economy, including renewed support for regional economic development alliances.”

Cathy Heron, president, Alberta Municipalities

“For well over a century the Rural Municipalities of Alberta has helped rural municipalities achieve strong, effective, local government. The Economic Development in Rural Alberta Plan supports our mission to strengthen rural Alberta and cultivate strategic and collaborative partnerships. This plan starts today and is designed for the rural Alberta of tomorrow.”

Paul McLauchlin, president, Rural Municipalities of Alberta

Quick facts

  • The plan focuses on five key strategic directions:
    • Identifying and improving economic development-enabling infrastructure to support investment and growth in rural Alberta.
    • Advancing entrepreneurship capacity and a culture of innovation across rural Alberta.
    • Enabling skills development in rural communities to enhance workforce capacity today and for the future.
    • Enhancing rural Alberta’s reputation and capacity as a diverse tourism destination.
    • Enhancing rural economic development through regional and targeted capacity building.
  • The plan will complement a number of initiatives that demonstrate the government’s commitment to building healthy and prosperous communities across rural Alberta, including:
    • Up to $390 million over four years as part of the Alberta Broadband Strategy to eliminate the digital divide for all Albertans.
    • Nearly $933 million for irrigation infrastructure in partnership with nine irrigation districts to expand and modernize Alberta’s irrigation infrastructure.
    • $78 million to fund 133 active capital maintenance and renewal projects in rural Alberta communities.
    • A $59-million investment to expand veterinary medicine at the University of Calgary, doubling the number of seats in the program to address a critical shortage of large animal veterinarians in rural Alberta.
    • $70 million for the Film and Television Tax Credit that will attract major productions to the province, diversifying the economy and creating thousands of new jobs.
    • More than $8 million through the Indigenous Opportunities Corporation to support Indigenous communities’ participation in commercially viable resource projects to support rural economic growth.
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