Ralph Dietrich DFO Update
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Transcript of Ralph Dietrich DFO Update
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Dairy UpdateJanuary 2014
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1. CETA – implications2. TPP – potential implications3. Pricing – increase proposed for Feb 20144. Yogurt (2a), Fine Cheese (3a) 5. Mozzarella (3d)6. DDPIP to DIP – innovation7. proAction – proving good stewardship8. Transportation
Key Issues
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Warned of potential give in Jan. 2013 at federal lobby day Assurance of support for SM provided Warned of potential give in at provincial lobby in April
2013 Assurance of support for SM provided Agreement in principle mid-July … warned at same time
of potential ….DFO lobby effort due to concerns Producers advised of deal Oct 16th
Included in Throne speech Oct 17th
Deal signed October 18th
Leading to the CETA Deal
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20,000 tonnes cheese under previous agreement ~13,300 filled by EU Total access increased to 37,700 17,700 in additional access (16,000 specialty
cheese and 1,700 conventional) to the EU Additional access = 2.25% share of current quota Implementation period of five years? Geographic indicators TRQ administration – BalanceCo.?
CETA
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10 year phase in? Border protection – Fluid milk
standards, pizza kits, supplementary import permits
Tariffs on cheese portion of pizza kits came into effect on November 29th
Much of the supplementary permits are for kosher cheese ….. should be able to supply/manufacture here under DIP
Our Ask
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Will further access be granted? N.Z., Australia, the U.S. want access Reaching an agreement more difficult than
bi-lateral ….. more players, more untouchables
Trade – success is gaining access to another market and protecting your own
Two things others will want: 1) access and/or 2) tariff reductions
TPP
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Canada joined in October 2012 Discussions ongoing … discussions at APEC
Conference in Bali in early October 2013 Reported agreement in principle in a number
of areas, with the exception of agriculture?
What do we know about TPP?
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That MPs know what is being discussed or offered
That the dairy industry is consulted during the discussions
Whether access and/or tariff reductions are being discussed and if they are to what degree
The target date for completion What does support for SM mean?
What we would like
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Getting the right milk to the right plant at the right time
DIP – innovative products, no % cap on growth, not crystalized into PSQ, initial price discount
Artisan Program – innovative, 300,000 liters per year
Fines cheeses & yogurt – current status measured ….. 3 million liters per year or five per cent of overall market share
Shredded/block mozzarella. – promotional efforts for the pizza market
Milk for Growth
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Stabilized after a period of decline Reason for decline? – cross border
shopping/distribution, imported flavoured milk Active measuring of border town activity taking
place– price, quantity, convenience outlets, major retailers …. Results from a Dec 18th visit to NY: Major signs welcoming Canadian shoppers Milk as low as $1.88/gallon (any fat level) compared
to ~$5 at Canadian based Costco stores
Fluid Milk
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1% increase on industrial (62% of which 18% is special classes)
1.347% increase on fluid (38%) ~11% of total BF market and 18% of SNF at
special class pricing
Feb 1 Milk Price Increases
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Payment to transporters rising primarily due to lower volume (-1.4%)
Metrics Review of existing routing (km) Optimization software being investigated Trailer fill rates .. inefficiency could lead to termination
Cost control considerations: Constraint evaluation – (No Sunday, 3x, 2” valves, non-
trailer access, etc. findings presented to 2014 Policy Conference)
Transportation
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Intention to review all policies on a periodic basis, e.g. every 5 years
Policy review process to be presented at 2014 Policy Conference
Following finalization of review policy review process, conduct a quota policy review …. ideally in a P5 context
Quota Policies
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Four New Areas Animal Welfare/Care Traceability Biosecurity Environmental Sustainability
Also discussed under the proAction banner CQM Harmonization of provincial quality standards –
Grade A, inhibitors, bacteria, abnormal freezing point, SCC, e.g. 400,000 SCC standard
What is DFC’s proAction?
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Image management In addition to the following, how do you want to be known? Dairy farmers are good stewards of:
animals land water
We take pride : Producing safe, high quality milk Consistently providing enough milk for dairy products at fair
prices
What is the public message you want to portray about dairy farmers/farming ?
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Three pillars 1. Animal identification (in place)2. Premises identification (in place)3. Animal movement (national system based on
CCIA and ATQ systems) Animal movement tracking to be mandated
by federal government
Traceability
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National program developed for dairy Reduces risks associated with the transfer of
disease or disease pathways Disease transfer pathways are well
understood by dairy farmers Buyer beware of high risk animals (SCC, Johnes) Transfer of disease through farm visitors (person
or vehicle) Transfer from one animal to another on farm
Biosecurity
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An Environmental Farm Plan has been developed by many dairy farmers
This type of approach agreed to at the DFC environmental conference in October 2013
Primarily about water protection ….manure, fuel, etc. … and soil conservation
The environment
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Positively influence consumers with credible programs
Competing with those concerned about animal rights (activists and others) to get our message out
Why animal care assessments
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DFO expects that dairy farmers licenced to produce and market milk provide humane care and handling according to the Dairy Code of Practice. DFO promotes compliance with the Code of Practice through education and extension, inspections and cooperative efforts with stakeholders and Farm and Food Care Ontario.
DFO Statement
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There are four primary considerations:1. dry, clean and comfortable (already part of
Grade A)2. adequate feed and water, colostrum for
calves (adequate feed and water is already part of Grade A)
3. only accidental injuries – assessment of hock, neck and hooves against a guidelines ….. if prevalent, what is causing the injuries? (major issues currently assessed through Grade A inspection process)
4. pain control – dehorning, lifting downer animals
Animal Welfare/Care
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Their message to consumers? ..don’t buy dairy products with ingredients from intensively farmed dairy cows. Choose products that are certified organic …eliminate or reduce dairy products are replace with tofu, beans, calcium fortified beverages
What can we and other supporters do to counter these assertions?
Canadian Coalition for Farm Animals
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Questions?