Expect a gradual drop in price for dairy products

Oct 19, 2018 | 12:30 PM

Prices for dairy, poultry, and eggs could come down once the new Canada-U.S.-Mexico trade deal is ratified.

Chair of the Business and Office Administration department at GPRC Charles Backman believes prices will go down over time.

“I think they will, but it won’t be necessarily right away. Essentially, that part of the agreement opened up access for more milk products from the United States. So, that duty-free access will potentially have an impact on overall prices, but it’s still a very small share of the overall Canadian market.”

Backman adds the deal should alter set prices for dairy products.

“The pricing mechanism or the prices that are set for not only milk products or the what dairy farmers receive for their products, but also prices that are set for ingredients that are used for higher manufacturing of cheeses or various other things like that.”

He says with the new deal in place, consumers should see a wider range of prices and selection.

“So, as a result of the U.S.-Mexico-Canada agreement, there should be more imports from the United States. But, also, we are presently looking at negotiating an agreement with the EU as well on dairy products. That will allow for greater imported products from them.”

With the new deal, American dairy farmers have access to roughly 3.5 percent of Canada’s $16-billion annual domestic dairy market.

by Brady Ratzlaff