SASKATOON -- Mel Foth’s dairy farm near Saskatoon was undergoing an expansion as the new Canada-United States-Mexico Agreement was struck.
"It raises the level of concern because we are already committed and that investment is going ahead,” he said.
New competition from the United States and the potential loss of markets are concerns, he said.
SaskMilk, a marketing board for producers, says CUSMA includes a stipulation placing restrictions on Canada's global exports of certain dairy products to any other country.
Policy and communications manager Joy Smith said that, for example, producers may not be able to get value out of the skim product left over from making butter.
"It also could end up affecting consumers because how do you balance producing less when Canadian consumers want more butter or cream like that with having the export restrictions."
The U.S. pressed for the clause to help its export market, according to SaskMilk.
The federal ministry of agriculture said in a statement that Canada is a priority for the U.S. and that Canada agreed to the new rules "as part of a balance of concessions to achieve, among other things, the preservation of existing market access commitments between Canada and the U.S.”
The ministry said Ottawa will work with dairy stakeholders on the potential future effects.
This year’s federal budget contains $3.9 billion to help dairy, poultry and egg farmers adjust to new conditions under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership and the Canada-European Union Comprehensive Economic and Trade Agreement.
Foth said the CUSMA will have a ripple effect across the board.
"The impact is going to be felt by every producer and every processor in Canada"
The agreement still needs to be officially ratified by each country.
