by SUSAN MANN
Canadian dairy farmers are losing $220 million a year due to imports of a concentrated protein from the United States, called diafiltered milk, that’s being used in cheese production.
And to fix the problem, dairy farmer organizations are calling on the federal government to enforce Canada’s national cheese compositional standards, which have been in place since 2008. Last week, Dairy Farmers of Canada and the Quebec dairy producer organization, Les Producteurs de lait du Québec, held a joint press conference in Montreal to outline their dissatisfaction that the federal government hasn’t yet enforced the standards.
“We are really perplexed why such a simple solution seems to be so complicated for them (the government),” Dairy Farmers of Canada president Wally Smith said in a telephone interview.
Government officials told Dairy Farmers of Canada annual policy conference delegates in February “they would move on it quickly but they needed a bit more time,” he explained. “We had expected some action by now.”
The cheese standards stipulate the minimum percentage for the protein used in cheese making that has to be sourced from milk. Smith said the minimum percentage is different for each cheese. For cheddar, its 83 per cent, and for standard pizza mozzarella, its about 60 per cent.
Those cheeses are key because they use the most volume of milk or ingredient, he explained.
Diafiltered milk is 85 per cent protein, which is almost “a pure protein,” Smith said. It’s a milk product that has gone through another level of filtering of ultra-filtered milk “so the concentration of protein has increased. Also, lactose has been washed out of the product so when it’s used in cheese processing there is no or very little waste.”
The product is displacing the use of protein from Canadian milk in cheese making. Diafiltered milk imports have been ramping up over the past number of years, he said. Dairy Farmers had lobbied the previous Conservative government to take action.
Diafiltered milk, which is imported into Canada as a slurry, can be considered a milk protein isolate because it’s a pure protein. However, it’s not powdered as isolates and milk protein concentrates are, Smith said.
Al Mussell, agricultural economist and owner of Guelph-based Agri-Food Economic Systems, said last year, 27,000 tonnes of diafiltered milk and milk protein isolates were imported into Canada.
The federal government said it’s working on a solution. Guy Gallant, communications director for Agriculture and Agri-Food Minister Lawrence MacAulay said by email that the use of imported diafiltered milk in cheese production is “of the highest priority to our government. In fact, it was the first file to be studied by the (House of Commons) Standing Committee on Agriculture and Agri-Food because any decision must be reached in the most transparent and accountable way, and with Canadian dairy farmers at the table.”
Gallant said the government wants dairy farmers “engaged in this conversation so that we can ensure that we work together on finding a sustainable solution.”
Smith said the Canadian Food Inspection Agency is responsible for ensuring processors comply with the cheese compositional standards. One reason the agency hasn’t enforced the standards may be because it has been “underfunded for a long time” and has had to focus more on consumer-driven complaints. “I don’t think it was really high on their priority list.”
There’s also a discrepancy in how the product is classified by two different federal departments, Smith said. The Canada Border Services Agency considers diafiltered milk to be an ingredient and the product can come into Canada, mainly from the United States, duty free.
Under the North American Free Trade Agreement between Canada, the United States and Mexico “there has never been any kind of tariff on any protein moving freely across the border,” he noted. However, “this is not a border issue. This is a domestic, Canadian issue in that the regulations for our own country are not being followed.”
CFIA, on the other hand, considers diafiltered milk to be milk, he said. That means the cheese compositional standards don’t apply to it.
Dairy producer organizations consider the product to be an ingredient and “it needs to be classified as such,” Smith said. “It is not milk.” A person cannot buy this product from a store and drink it, he said.
Smith explained that if the cheese standards were being enforced it would mean, for cheddar as an example, processors in Canada would be able to use no more than 17 per cent of the diafiltered milk ingredient in making the cheese and the rest of the product would have to be made from milk.
Mussell said the federal government might not be able to enforce the standards. The federal cheese compositional regulations “deal with the origin of casein in cheese.” Casein is the main protein found in milk.
He said it’s his understanding from talking to food scientists that “if you sample the casein in cheese, you cannot attribute the origin of it.” That means regulators can’t tell, using scientific, laboratory analysis of casein, whether it comes from milk or ingredients, such as milk protein isolates or diafiltered milk.
This applies to the vast majority of cheeses, including cheddar and mozzarella. For soft, unripened cheeses “there may have been some limited success in being able to, perhaps, infer the origin of the casein,” he noted.
Ironically, the imports of diafiltered milk are coming to Canada from the United States, but American cheese makers don’t use it to make their domestic cheeses, Agropur Cooperative senior vice president Dominique Benoit said in a written transcript of the March 9 meeting of the Standing Committee on Agriculture and Agri-Food.
The co-op has annual sales totaling nearly $6 billion and has 28 plants in eight provinces along with operations in the United States. It processes 30 per cent of Canada’s milk production. It also has 6,000 employees and is owned by 3,367 dairy producers, including some in Ontario.
Diafiltered milk is being used in Canada because it’s a way to bring in cheaper protein, he said. When asked by a committee member if Agropur uses the product in its Canadian production facilities, Benoit said the company competes with major players in the Canadian market and “we have no choice but to use the same tools as others.” BF
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An article, "It's time for Canada to move on from the myopia of marketing boards" by Sylvain Charlebois, dean of the faculty of management and professor in agriculture at Dalhousie University, in yesterday's Globe and Mail, laid bare the essential futility of whatever "desperate measures" the Canadian dairy industry might adopt in an attempt to save supply management.
The essential problem, according to Charlebois, is that consumers want more butterfat and less milk, but farmers remain set in their ways of wanting consumers to bend to the dairy farmer way of doing things.
Adding to that are the statements by Charlebois that:
(A) the use of marketing boards "has led to a deeply myopic view of agricultural markets"
(B) "several (supply managed) commodity sectors are experiencing nothing less than an existential crisis"
(C) "many (marketing boards) have passed their expiry dates"
Or, in other words, everything about what the Canadian dairy industry wants government to do is based more on fear than on reason.
Stephen Thompson, Clinton ON
Thanks to Ian Cumming for exposing, in this week's Ontario Farmer, the essential double-standard of the Dairy Farmers of Canada (DFC) position when it comes to the importing of diafiltered milk.
According to Cumming, DFC's position is that ultrafiltered milk is OK to use in cheese, but double-ultrafiltered (diafiltered) milk is not.
Therefore, to any layperson, the DFC's argument is exactly the same thing, and just as absurd as claiming that pasteurizing milk once is OK, but pasteurizing it twice is not.
DFC's position once again validates the truism that whenever a rent-seeking entity (anybody with a vested interest to defend) claims it's about good science, it's really all about the money.
Stephen Thompson, Clinton ON
Diafiltered milk was created to circumvent import rules and Canada’s cheese compositional standards, which were established in 2007 by the federal government. The proof is that this product is not used to produce cheese in the United States.
At the border, diafiltered milk is considered an ingredient by the Canadian Border Services Agency but once in Canada it is considered milk by the Canadian Food Inspection Agency (CFIA). This inconsistency must be corrected.
According to a non-current article by Ian Cumming, ultrafiltered milk was not developed to circumvent import rules, but was developed by Eurpean dairy processors to compensate for the lowered fat content of milk when cattle went out on pasture.
A light ultrafiltering of milk by European processors raised it to 4.2% butterfat and sparked the interest of Canadian dairy processors.
The above poster conveniently ignores that in 2007, Canadian dairy farmers blundered into believing then ag Minister, Chuck Strahl, when he claimed that the European product (the only place where milk protein concentrates were being produced at the time) wouldn't be allowed into Canada because of Article 28 of GATT, but Canadian processors simply made an end run around the "country of origin" provision of GATT by building and buying ingredient factories in the US to use cheaper US milk, and where NAFTA denied the imposition of a tariff by Canada on new products not already listed.
In addition, the claim by the above poster that diafiltered milk is not used to produce cheese in the US conveniently and disingenuously ignores that ultrafiltered milk (any difference between the two seems to be visible only to people who own dairy quota) appears to have been long-since used to produce cheese in Europe.
The only inconsistency is that Canadian dairy farmers seem to want to preserve their quota values by forcing Canadian dairy processors to buy high-priced Canadian milk to produce cheese of lesser quality and taste than what can be made with cheaper product from the US.
Stephen Thompson, Clinton ON
(519) 482 - 3244
The only relevant point is, once again, that compositional standards are a propagandist fallacy trotted out by supply management supporters to disguise the fact that it really is all about money and the preservation of quota values.
Stephen Thompson, Clinton ON
The way Canadian dairy farmers tell the story, imported diafiltered milk lowers the standards of, and/or taste of, Canadian cheese.
However, Ian Cumming reported in the Ontario Farmer a few years ago that the research department at least one Canadian dairy processor:
..... "demonstrated how the liquid version of milk protein concentrates resulted in a far superior tasting cheese equal to (that) being manufactured with real milk. Not having that plastic taste and texture to it that had been the result of using the solid concentrates".
Therefore, it would appear that the "compositional standards" argument proffered by Canadian dairy farmers in opposition to the imports of diafiltered milk is, as it is with every argument trotted out to prop-up supply management, completely without merit.
On the other hand, and to use business terminology, when Canadian dairy processors import diafiltered milk from the US to make cheese, they are getting a premium product at a discount price - Canadian dairy farmers can, and should, Google the term "Maginot Line" to understand that they have been completely-outflanked, out-gunned and cut off at the knees.
And when it comes to the dairy farmer demands that government actually do something to stop the ability of dairy processors to import premium products at discount prices, Ian Cumming will remind anyone that former federal Ag Minister, Chuck Strahl, promised in early 2007 to stop the then newly-invented milk protein concentrates "at the border" and then promptly (and correctly) did nothing.
What, therefore, has happened in the last nine years when it comes to imports of milk proteins? - NOTHING!, and that would be a very-good thing for everyone in Canada who doesn't own dairy quota.
Stephen Thompson, Clinton ON
So a US cheese lover would question why producers are shipping that premium product north and not using it in there own cheese making?
Does not make a lot of sence does it ? But l'm sure the writers sources are impeccable!
In this video, is is stated that this sharing of wealth is only possible in America, and when it comes to comparing dairy systems of US and Canada-he's right.
Another takeaway is the myth that publicly traded corporations are evil.
They're not.
google 'nbcnewschobani ceo giving employees an ownership stake in yogurt empire'
(sorry couldn't get the link to paste)
Raube Beuerman
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