Trade issues are at the heart of tensions between Canada and the United States, but a little-known dairy product may be the core issue of the dispute.
In 2016, the United States exported $102,000,000 in ultrafiltered milk to Canada, a milk-protein concentrate used primarily in cheese-making to increase yields. However, industry observers estimate that exports have dropped to near zero since February 1st when Canada created a nationwide dairy classification that lowered the price of Canadian milk used to make ultrafiltered milk.
Dairy farmers in Wisconsin, New York & Minnesota have been hurt badly by the new policy that encourages Canadian dairies to buy certain types of milk products domestically.
The dispute could have ripple effects across global dairy markets, and could contribute to advisers within the Donald Trump administration to reshape the North American Free Trade Agreement, which could be a disaster for U.S. and Canadian farmers alike.
