Milk Prices Soar, but Government Forcing Farmers to Dump it to Protect Dairy Lobby

Farmer comes clean about what’s happening to milk that could feed people in this inflationary economy. You may think this is because of Justin Trudeau, but this is a long standing issue with the powerful Dairy Lobby in Canada. Farmers are forced to dump perfectly good milk down the drain to fit the quotas set up by the lobby instead of competing in the market.

Jerry Huigen video:

Nexus News Feed:

CBC article from 2020:

Canadian Grocer article from 2015:

Harvard International Review:

#dairy #milk #canada

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  1. This is the system working exactly as intended. This allows their profits to stay constant with inflation. Nobody wants to fight the lobby. Now, were politics in these parts of the world not exactly what they are, would it make more sense, given we have a crazy immigration goal – it won't be as bad as they say it will be because there will also be emigration, and likely a lot of it – to say to the dairy farmers "look guys, we're bringing in more people so we're just going to inflate what you're allowed to produce, by issuing quota proportionally to you, or by increasing what each quota certificate allows by errata,* if you can't use your extra quota, you can sell it to somebody else, or we'll underwrite its sale under a best efforts arrangement"? Sure. Maybe some of the guys would want to collude or fight it, but they would have a hard time getting people together to resist it, because most farmers would just say "all right, now I add a few more head of cattle." That's not happening, though.

  2. They create "scarcity" to keep the prices up. Another Globalist Cabal tactic among everything else they are doing. But….their time is near the end. Ask them about "Project Looking Glass". Watch them turn white! By May of this year, all upper levels of the Cabal will be gone. In 3 years the Cabal structure will be decimated and done. Then we as a humanity will be able to build a new, beautiful world that it should be. In the mean time, keep your sovereignty and act from the heart structure. Everything will be all right.

  3. 1/8

    I have never commented on a video before, but I feel like I have to. As the son of a dairy farmer who is going to school for a diploma in agriculture, I need to give the other side of the story here to those who are curious and wish to listen and learn.

    First off, this man does not represent all dairy farmers in Ontario. He is simply a soundbite on Tiktok giving his opinion on how the industry should be regulated. He is not brave; just a loud person who wants to get his opinion and frustrations out to the world. DFO (Dairy Farmers of Ontario) are not suddenly going to shut him down because he posted a video. He has nothing to lose and everything to gain by posting a video like this. He is standing up for himself and the dairy producers that are on his side which is fine, but he does not represent everyone. I know many dairy farmers who would fight to keep the supply management system because they fear they would go out of business without it.

  4. 2/8

    Let me explain as best I can to represent those farmers out there who believe in a supply managed system. The purpose of the supply management is to meet demand and maintain a consistent selling price for farmers, processors, and food stores. This means the price for the consumer will be consistent as well. You might wonder then why milk prices are going up if the price is meant to be consistent with a supply managed system. The reason is the same reason why all prices are increasing: Energy costs inflation. Which means the cost of production for everyone in the supply chain (farmers, truckers, processors, food stores) is up. The current increase being seen has nothing to do with the quota system. Recently, in September of 2022, the Milk Board evaluated the market and gave all farmers a price increase on their milk check per kilogram of quota to equalize farmers' rising costs. I can't speak to the other sections in the supply chain, but I assume they increased their prices as well.

  5. 3/8

    I will outline the fear of farmers if the quota system goes. With no management, market forces will determine the amount of milk to be supplied to the market, and it will do so like a hammer to a pane of glass. Farmers would begin increasing production with no limits now. The market would flood with milk. Prices would have to drop because milk has a shelf life and must be sold before it spoils. The lowering price would be great for consumers, but the processors would be getting less money. They would not be able to support themselves at such a low price, so they start paying less to farmers due to the abundance of milk. The farmers who just invested all this money to ramp up production are not seeing any increases on their bottom line because prices have dropped. Any small farm who is paying off debt with no capital to increase production to at least break even with this new lower price is screwed.

    However, there will eventually be a flip side. With the processors paying less to the farmers, some farms will either go under, wait the low prices out, or sell all their cows and reinvest in a different commodity if their circumstances make it possible to do so. Milk supply will drop because of this. The supply of milk in the store will drop below demand and drive the price up for the consumer. The risen price will domino back to the farmer encouraging them to invest to produce more. And this cycle continues…

  6. 4/8

    Removing the quota system will not make prices cheaper for the consumer in the long run. It makes prices very high at some times and very cheap at others. Those mothers who want to feed their kids will still have the same problem when the prices go high in this market cycle.

    For farmers, the dairy market will become similar to how the pork market operates. In the pork market, some years prices are great, but sometimes you may go years losing money on your farm and have to wait for those highs to return.

    Another point to mention. With times of lower milk prices for farmers, many farms will have to go big or go home. The only way to stay in business with lower prices is to work for less, be more efficient, or limit your fixed costs by expanding your operation using economies of scale. With no quota system and given enough time, small family farms (maybe 60 cows) will disappear. Big dairy farms will be the normal just like they are in the United States. I have nothing against a well run large dairy operation, but I am against creating a market where the small farm and simple life can no longer exist. Small farms will be part of the cost to remove a supply managed system.

  7. 5/8

    It is also worth noting that milk is not like most commodities. Grain you can store in a bin for over a year. Milk and milk derived products (depending on processing and storage) have a short window of opportunity before they are worthless to the consumer. If a farmer produces too much grain in a low-price scenario, he stores it in a bin and waits for the price to rise before selling. If a farmer produces too much milk for the market, then it will either go to waste or the price will drop so low that it was not worth it to produce the milk in the first place. One of the benefits of a supply managed system is limiting the waste of our natural resources. As a farmer, I do not want any of my products to go to waste because I made too much. I work hard. I want my product to be of quality, be used, and get a fair price for it so I can continue to produce.

    In addition, the removal of a centralized supply management will still result in the market having some form of supply management in one form or another. Most likely we would become like the United States. The milk processing plants will create contracts for farmers to fill. If you are a small farm, the processor may decide to not take your milk because it is not worth their time. Either way, there will be a supply managed system. People need to understand that. No matter what form it is in, you are not getting away from it entirely. Now we could have a conversation who’s hands the supply management should be in. That is where the conversation should be at. Do farmers want to be at the mercy of an appointed board, the processors, or something else?

  8. 6/8

    I understand the reaction of people seeing milk go down the drain. Trust me… I don’t like seeing it either. During that awful winter storm that left many people stranded, many farmers had to dump one tank of their milk because the truck drivers could not get to us. I have had occasions on our farm where I had to calculate the amount of milk to dump. However, I should bring up that if you are a farmer either over shipping or under shipping, that is a farm management problem. It is not a supply management problem. Being frustrated with the quota system is one thing, but you are not forced to go over or under your limit. As a farmer, if you are underproducing, buy more dairy cows or sell some of your quota. If you are overproducing, sell some of your dairy cows.

    Also, I should note that you are allowed to over ship your milk. You will get a fine on your milk check for doing so because the market supply must be maintained, but the processor will take it if it comes in on the truck. There is also a lot more flexibility in shipping milk than people may think. In Ontario, your quota is the kilograms (kg) of butterfat that you can ship in a day (we ship on the amount of fat in the milk, not the fluid or the protein). In normal months you fill 30 or 31 days. As a producer you are granted a few days worth of quota, either under or over, for flexibility. It gives the farmer wiggle room and time to adjust their herd and management practices. You can go 15 days worth of quota under, and 10 days worth of quota over before you will start to be penalized on your milk check. And these days roll over month to month. So, if you underproduce by 4 days last month, you can make up for it this month and get your under-credit days back to a balance of zero. The same is true for over shipping. This is why there should be no reason ever to dump milk if you are monitoring and managing your farm correctly.

    So, I think twice when I hear someone say they are on the side of the farmers to remove supply management. They are on their own side. Removing it is beneficial to them because they have the means to increase production. Other farms may not and are against the push to remove supply management. Believe me… farmers are a dedicated bunch. If we all agreed that supply management was bad, it would be gone. Many of the members who sit or advised the milk boards used to be dairy farmers.

  9. 7/8

    Therefore (speaking now to the nature of this farmer’s video and his methods of persuasion), it is irresponsible to send a message to the unaware public saying that the government is clamping down on us with supply management. Educate people on both sides of the situation before you give your thoughts on the matter. I also find it inappropriate to use peoples’ compassion for “the good working farmer with a family” as a way to get support for yourself with no consideration that there are other “good working farmers” in situations other than your own, who have different needs and would disagree with your position. Also, I know we all have distrust of our government given the recent years, but to prey on peoples’ anger and frustration towards the government to support your own position is manipulative and immature.

    I get you and others are frustrated by the current system. All us farmers have had those moments in our practices where we feel misunderstood and shoved into a corner. But this conversation about supply management is nothing new. We have been having this discussion for years back and forth between various groups of farmers. I have had many conversations with fellow farmers here at school. To say that “you can hide no longer” that “It’s time for farmers to stand up” that “we are asked to keep this hidden” is completely misleading. Nothing is hidden and we have always had conversations about the nature of supply management in the industry. If anyone wants to know how the system works, there are options to find out: Google search, farmer social media platforms, or simply talking to farmers. Sending out a grievance video like this is counterproductive and raises emotions to the point where people no longer listen to each other.

  10. 8/8

    Consumers deserve to have their input taken into consideration when it comes to supply management, but they must have a full understanding before they go lobby a government to change a nationwide policy. Also, consumers do not get to decide what is best for farmers. They do not see the day-to-day operations to be informed enough for solid decision making. They also should not be sourcing their information from one farmer on Tiktok.

    I hope this perspective from a different group of farmers gives you pause and opens the door to learning more about the dairy industry. I don’t want animosity towards each other in this industry. I want us to understand each other better and work towards improving this industry together.

    Thank you for your time.

  11. Farmers forced to dump milk = milk prices up….chicken farms being set on fire = egg prices up…starting wars around the world = gas prices go up…all by design to destroy society to implement a new agends for people to be fully dependent on government so they can control everybody…trudeau is following orders from wef and its very noticeable and if you cant see that then your a terrorist just like all governments, especially the g7 countries who signed to follow this globalists agenda

  12. This is why these things should be changed. The dairy lobby is nothing but a cartel to keep prices high and make it harder for independent farmers. The dairy lobby is also why raw milk isn't allowed to be sold in Canada, despite the fact that it's allowed to be sold in the UK and the US just fine, and despite the fact that raw milk can be better for some people, especially people with milk allergies or people who are lactose intolerant. This government should get out of these industries, and let these farmers sell their milk (or whatever they are selling) on the open market. There's no need of this type of waste in Canada. It's shameful, and the people should be standing up against this.

  13. that brand milk 'Fairlife' is amazing. I'm not some one that can just pour a glass of milk and drink it without eating anything. This milk , just grab a glass and fill it up , goes down so refreshing , and thirst quenching. Sounds like I'm doing a commercial. It has a really long expiration date, a month or 2 because its been filtered a number of times. I buy 4 or 5 at a time , especially when on sale. It is addictive.

  14. The only way for farmers like this is to diversify into utilising the over quota milk into a food product that THEY can benefit from eg, ice cream, cheese, butter, dried milk, milkshake etc. If they don't it will keep happening and it's absolutely insane when there's so much hunger and poverty around. To think free milk could be supplied in all schools colleges hospitals etc but big business even wants to stop that because it would lower THEIR profits . 😲😲😡😠😡 Big corporations are evil and they'll put profit before peoples lives everytime, pure EVIL.

  15. Every few years there is another dairy farmer who wants the best of both worlds. He wants the stability and fair prices that is provided with supply management and the right to produce as much milk as he wants and receive the best price. That is not how the system works.Managing your farms production solves over production The government has very little control over the system it only allows it to exist

  16. ****PLEASE READ:****
    The farmer in this video is only sharing one side of the story which is creating misinformation
    First, no one is forcing this farmer do dump any milk. This farmer knows exactly how much he can produce to fill his quota, (it tells him on his milk cheque how much he can produce everyday). If he is producing too much over his quota, it means that he is mismanaging his farm. Sell a few cows, dry some up.
    Farmers are allowed to over produce more milk than their quota to a certain point (we call them production sleeves) if this farmer had over produced that as well, it’s on him, not anyone else.
    Supply Management controls the supply to meet the demand. It was created to eliminate food waste and was to control farm growth so farmers only produce what there is a demand for, Milk is a perishable product, Imagine if this farmer was able to ship his extra 30,000 L alongside his 10 other farming neighbours. This would create an oversupply milk, which would mean farmers would need to dump milk, because you can’t turn the cows off, processors can only process so much. And milk only has a shelf life of only 2-3 days before it can be processed. Just look at farmers below the border who were cut off from their processors because there was an over supply of milk. Not fun. Unfortunately these farm were sold.

    Milk is not dumped to keep milk prices high, thats nonsense. When you factor is the dollar exchange rate and that US taxpayers subsidize dairy farmer. a gallon of milk cost roughly the same as it does here in Canada.

    And finally the reason milk was being dumped at the beginning of Covid was because there was a sudden shift in the way milk was being used. Milk went from being consumed in restaurants to being consumed at home. Many processors only process for one way to consume milk. When Covid hit and the demand shifted from restaurant to retail/home use Many processor had to refigure their processing plant to adapt to the changes. Milk had to be dumped because processors were not ready.

    Supply Management is a great system that helps keep farm in Canada sustainable and gives Canadian consumers a product they can trust.
    Please do your research before posting a video with inaccurate information. You are hurting those who feed you.

  17. This is how you know that no one actually cares about helping the poor. They could easily just make the farmers give this to organizations that feed the hungry while still fixing prices to gouge the rest of us but they love that there are destitute people. They’re the easiest to control plus they’re a great prop to use for votes.

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