The Decibel Dairy’s outsized political influence and the trade war
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Jul 23, 2025 Kate Helmore, Agriculture and food policy reporter for The Globe and Mail, dives into the complexities of Canada-U.S. dairy trade. She explains supply management and its vital role in maintaining production stability. The conversation highlights the political clout of the dairy industry and discusses the challenges posed by tariffs and trade negotiations. Helmore sheds light on how Canada negotiates while preserving its dairy sector amidst international pressures, exploring the tensions between consumer demands and trade agreements.
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Canada's Dairy Industry Scale
- Canada's dairy industry generates about $8.8 billion in revenue and has 1.375 million cattle on 9,200 farms. - Around 44,000 people are employed in dairy farming and manufacturing nationwide.
Supply Management Frustrates U.S.
- Canada's supply management limits dairy imports, frustrating the U.S., especially under President Trump. - The U.S. gained 3.5% market share under USMCA but cannot freely sell dairy due to tariffs and quotas.
How Supply Management Works
- Supply management regulates production and prices, keeping dairy prices above production costs. - This shield prevents market oversupply but complicates trade negotiations due to controlled imports.