Dairy Farmers defends Greek yogurt making plan

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Ontario milk processors are protesting a proposal to make Chobani Greek yogurt in Canada


DFO tells who can start farming,now they want to say who can make the produce from milk. Its one thing to control the milk but when there is a company that wants to setup in Canada to produce food from Canada they are over stepping their bound.

Please read the story, DFO wants these new plants. More milk sales means more quota. Growing the market and incomes of dairy farmers is DFO's mission. It is Canadian processors that are trying to keep a new competitor out of the market.

Because of the price gouging at the farm gate caused by the greed/stupidity of supply management. basically all the Chobani market will do is fragment the existing cheese market, and take market share away from other cheeses. Therefore, with no ability to export cheese to cover fixed costs, thanks once again to the greed/stupidity of supply management, dairy processors will either have to charge more for the lower volumes of traditional cheese they produce, or absorb the costs. DFO, as usual/as always, is responsible for the problem - the existing cheese processors are reacting in the only way they can act in the face of the fact they're going to lose sales, thanks to the constant greed/stupidity of supply management. The whole problem stems from the economic fallacy underpinning supply management which is that it is virtually impossible for anyone to "grow" any market, especially a mature market like dairy products, when they refuse to use price as part of the marketing mix, and refuse to allow exports to give processors economies of scale.
Stephen Thompson, Clinton ON

Before anyone takes me to task for claiming Chobani produces yougurt, not cheese, dairy products all face effectively the same market, and increases in the sales of one, effectively takes sales away from the other - and the processors seem to be the only people involved in this farce who know it. We simply wouldn't have this problem if we didn't have supply management gouging at the farm gate as well as denying the ability to export.

Stephen Thompson, Clinton ON

They may want new plants in Ontario ,where are they going to sell their product unless they take from someone else. It seems like the market in Ontario is leveled off unless they lower the price and the whole circle doesn,t seem to want that. Under the supply man. they can,t export so it,s like they are in a box with no room to expand in milk production.

So tired of not having choice on the grocery shelves because processors want to protect their market share. Let the consumer choose which it is doing and let the farmers produce the amount of milk needed - not just enough to protect current markets.

Unsigned, unsubstantiated, allegations removed by editor

The plant is in Columbus, NY not South Edmeston, NY

Editor's note: The Nov. 16, 2011 press release from the company on the CNW announcing Chobani is coming to Canada says the product is made out of their South Edmeston, NY production facility.

It is ironic, and infuriating, that DFO spokesman, Bill Mitchell, claims this issue is prompting "undeserved" attacks on supply management - a non-starter since there are so many well-deserved reasons to attack supply management which he, of course, completely ignores. For example, Mitchell seems to be able to completely ignore DFO's own press release in late 2010, wherein he, Mitchell, pointed out that Ontario consumers were paying almost 38% more for milk than US consumers, and that the farm gate price of milk in Ontario was within pennies per litre of the US retail price. Mitchell is also being quite slippery with the truth about the benefits to be provided to Ontario dairy farmers by frozen pizza maker, Dr. Oetker - Mitchell ignores the long-standing grievance of Canadian fresh pizza makers who must purchase expensive domestic mozzarella cheese, while frozen pizza makers, like Dr. Oetker, are allowed to purchase cheaper, imported mozzarella cheese. Finally, Mitchell and the DFO, as always, ignore the obvious fact which is that all of these manipulations on behalf of dairy farmers take place behind an obscenely high 237.5% tariff barrier which, by definition, squarely pits dairy farmers against consumers and other farmers who lack this tariff protection.

Stephen Thompson, Clinton ON

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