Canada dairy farmers say Europe trade deal payout falls short

By Rod Nickel

WINNIPEG, Manitoba (Reuters) – The Canadian government said on Thursday that it would spend C$350 million ($259.88 million) to help its dairy sector compete against increased European imports allowed under a free trade deal, but the amount falls short of farmers’ expectations.

The money includes C$250 million over five years to help farmers update equipment, and C$100 million over four years to help dairy processors modernize operations, Agriculture Minister Lawrence MacAulay said in a statement.

Dairy Farmers of Canada, an influential lobby group, said the money only partially addresses “damage” that Canada’s free trade deal with the European Union will inflict.

Under the deal, European dairies would receive tariff-free access for an additional 17,700 tonnes of cheese, representing 2 percent of Canadian milk production, according to Dairy Farmers of Canada.

The previous Conservative government had promised C$4.3 billion over 15 years to compensate dairy, poultry and egg farmers, but that pledge …
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