ST. JOHNS, Mich. (GRBJ) - A new trade agreement between the U.S. and Canada might benefit dairy farmers in Michigan.
Ken Nobis, president of the Michigan Milk Producers Association and a dairy farmer in St. Johns, said on the surface the deal looks positive for Michigan’s dairy farmers.
The agreement, which has yet to be approved by Congress and signed by President Donald Trump, seeks to amend the trade regulations between the two countries after months of ongoing tariff retaliation.
The trade deal also includes Mexico and is expected to be signed by the president in November. The agreement has two advantages for Michigan: an expanded Canadian market and the elimination of Canada’s Milk Classes 6 and 7 products.
The agreement will allow U.S. dairy farmers the opportunity to export more dairy products to Canada, including fluid milk, cream, butter, skim milk powder, cheese and other dairy products. In addition to opening its export market, Canada also will eliminate tariffs on whey and margarine, according to terms of the agreement.
Jamie Zmitko-Somers, international marketing program manager for the Michigan Department of Agriculture and Rural Development, said 60 percent of the state’s agriculture exports go to Canada, including poultry and grains.
Fluid milk currently is not exported to Canada, according to Nobis, despite the overproduction of milk in the state. Construction of two large dairy processing plants is underway in mid-Michigan.
►Make it easy to keep up to date with more stories like this. Download the 13 ON YOUR SIDE app now.
Have a news tip? Email news@wzzm13.com, visit our Facebook page or Twitter.
