Dairy farmers wait for processors' response on policy reforms

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DFO gives every impression they are a group of blind men trying to describe an elephant by what they feel - one feels the trunk, one feels an ear, one feels a leg, another feels the torso, and so on.

For example, while there is nary a peep from these "blind men" that price may be of any hindrance to consumers whatsoever, they seem to fall all over themselves to give general impression that the image of a blue cow on dairy products will somehow be the "magic bullet" to increase sales of dairy products.

What's worse is that while the DFO "blind men" bemoan the fact that Canada's three largest dairy processors don't use the blue cow logo, they never once entertain the strong possibility that the processors don't use it because they know it doesn't increase sales.

In addition, while DFO studiously micro-manages the finer points of generic advertising versus branded advertising, they also studiously ignore the obvious point that no advertising is going to influence the steadily-increasing number of consumers who regularly flee to the US to buy on price, to come back to Canada to shop.

However, the "Darwin award" for the comment most-likely to demonstrate that the evolutionary process has stopped, or is even going in reverse, goes to Peter Gould for noting - "Promoting low-fat and no-fat dairy products does not grow the industry" while at the same time studiously ignoring the dictum that price will "grow the industry".

Stephen Thompson, Clinton ON

Media didn't cover the price decrease paid to farmers announced last week.

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The media did .
Do you consider this site or BF media ? If so you are in trouble .

With the consolidation that has been happening in SM the last number of years , the growing size of SM operations it is high time that the price comes down . After all bigger is to be able to produce cheaper .

The SM guys live in a vacuum,keep your heads in the sand boys .It's a global market place, you guys haven't realized it yet.

Only 7 % of global milk production is traded.
Half of that is EU and US subsidized surplus.
Half is from NZ and Oz and only developed because they are propped up by tariff-created price returns guaranteed by preferential WTO access. NZ produces about 3 per cent of the world's milk, but has a tiny domestic market.
All while the US has highest effective tariff rate protection allowing the world's lowest milk import access of barely over 2 per cent.
Yes, some heads are indeed firmly in the sand.

Editor: Comment deleted in accordance with out guidelines.

You fail to mention the US price for milk goes up and down as all free market systems.The milk in Canada would never go to the US as it is too expensive under the SM system.My friend in Wisconsin milks a 1000 cows his price moves from year to year depending on demand and world conditions. Stop talking about tariffs in the US under our system it is not a market you guys would want to access if prices were low on the world stage unless it is to dump excess product

No one suggested Canadian imports, the point was US has highest effective tariff rate protection which permanently means they allow the world's lowest milk import access of barely over 2 per cent. Canada imports 7 % of total milk and about 15 % of cheese. Much more than most countries.
Two per cent into US is WTO mandated access - NOTHING else can get in over the US tariff wall.
Everyone admits Canada's tariff wall, why not admit US has the same? Effective tariff rate (protection provided against world price) is actually higher into US.

Your argument is nonsensical, why would any US processor and/or consumer want to import dairy or chicken into their country. The prices are much more a result of the market, which does not exist here.
When Americans consumers start crossing the border to buy Canadian dairy products you may have a point.
Until then-you don't.

Raube Beuerman

Finally you have to say that you too agree that things do just cost more in Canada . About ding dang time it sunk in !

No, just dairy and poultry.

Try to focus.

Raube Beuerman

Yes Yes Yes , Focus , Focus , Focus . Sad to say there are some rather narrow minded thinkers on here . No one said dairy and poultry were excluded !
Some of us try to focus on the whole bigger picture .

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