Federal government invests $350 million into dairy sector

Nov 10, 2016

Producers and processors will benefit from funding

By Diego Flammini
Assistant Editor, North American Content
Farms.com

Canada’s federal government is investing $350 million into the country’s dairy sector to support its competitiveness as the Canada-European Union Comprehensive Agreement (CETA) comes into effect.

CETA’s impact on Canadian dairy farmers means more than 17,000 tonnes of cheese will not be produced in Canada, and could cost producers about $116 million annually in lost revenues, according to a Dairy Farmers of Canada release.

The investment will create two programs the government says will help “ensure that dairy producers and processors continue to innovate and improve productivity," according to the government release on the investment.

A Dairy Farm Investment Program will receive $250 million over five years. It’s designed to help dairy farmers upgrade equipment including robot milkers, feeding systems and herd management tools.

A Dairy Processing Investment Fund will receive $100 million over four years to help processors modernize their operations and pursue new market opportunities – which is good news, according to some Ontario dairy farmers.

“There’s a really big emphasis on robots and making them more available to dairy farmers,” said Anna Roberts, an Ottawa-area producer who attended a VMS robotic tour with DeLaval at October’s World Dairy Expo. “I think it’s a really good idea.”

Dairy Farmers of Canada recognizes the government’s investment, but warns it’s only a small step in larger journey.

"With today's announcement, the government has taken a significant step in demonstrating their commitment to supply management, and to the continued innovation and growth of Canada's dairy sector; for that, DFC gives thanks," Wally Smith, president of DFC said in a release. "However, in order to ensure the continued sustainability and viability of supply management, there is still work to be done and the government has a significant role to play."

Video: Evolution of Beef Cattle Farming

The Clear Conversations podcast took to the road for a special episode recorded in Nashville during CattleCon, bringing listeners straight into the heart of the cattle industry. Host Tracy Sellers welcomed rancher Steve Wooten of Beatty Canyon Ranch in Colorado for a wide-ranging discussion that blended family history and sustainability, particularly as it relates to the future of beef production.

Sustainability emerged as a central theme of the conversation, a word that Wooten acknowledges can mean very different things depending on who you ask. For him, sustainability starts with the soil. Healthy soil produces healthy grass, which supports efficient cattle capable of producing year after year with minimal external inputs. It’s an approach that equally considers vegetation, animal efficiency, and long-term profitability.

That philosophy aligned naturally with Wooten’s involvement in the U.S. Roundtable for Sustainable Beef, where he served as a representative for the Colorado Cattlemen’s Association. The roundtable brings together the entire beef supply chain—from producers to retailers—along with universities, NGOs, and allied industries. Its goal is not regulation, Wooten emphasized, but collaboration, shared learning, and continuous improvement.