Northeast Dairy Farmer Cooperatives
Here are some of the important provisions that apply to dairy in the agreement:
- Canada shall ensure that milk Class 6 and milk Class 7, including their associated milk class prices, are eliminated six months after entry into the Agreement.
- Six months after entry into force of this Agreement, Canada shall ensure that products and ingredients classified under classes 6 and 7 shall be reclassified and that their associated milk class prices shall be established appropriately based on use.
- Canada shall ensure that prices for non-fat solids used to manufacture milk protein concentrates, skim milk powder and infant formula be no lower than the USDA non-fat dry milk prices, minus Canada’s applicable processor margin multiplied by Canada’s yield factor.
- Canada’s non-fat dry milk powder, milk protein concentrate and infant formula exports will be capped. • Overall, the U.S. will gain more access to the Canadian dairy market.
Keep in mind Congress has to ratify the U.S., Mexican, Canadian Agreement (USMCA).