Govt Announces Compensation for Supply-Managed Dairy Producers

CANADA - On Friday, Agriculture and Agri-Food Minister Marie-Claude Bibeau visited a dairy farm in Compton, where she announced that the federal government will make available $1.75 billion over eight years to Canada’s nearly 11,000 dairy farmers.
calendar icon 19 August 2019
clock icon 2 minute read

Of this amount, $345 million will be paid in the first year, in the form of direct payments and will benefit all dairy producers in proportion to their quota held. For example, the owner of a farm with 80 dairy cows will be awarded compensation in the form of a direct payment of $28,000 in the first year.

The intent is to mandate the Canadian Dairy Commission to make these payments. The federal government will continue to work with the Dairy Farmers of Canada to determine terms and conditions for future years.

This announcement follows ratification of the Canada-European Union Comprehensive Economic and Trade Agreement (CETA) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

The $1.75 billion made available would be in addition to the $250 million investment programme that already benefits more than 3,300 dairy producers across the country. This amounts to a total of $2 billion in federal support to dairy producers.

In addition, the federal government is committed to fully and fairly supporting dairy producers for the new free trade agreement with the United States and Mexico once it comes into force.

Minister Bibeau also reiterated the government’s commitment to the other supply-managed sectors.

"Today’s announcement shows how much our government respects our producers and believes in the supply management system. As promised, the compensation is deployed fully and fairly to allow everyone to make the best decisions based on the new market realities and their respective situations," she said.

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