Home Red River Farm Net Dairy Farms Lose Contracts with Processors

Dairy Farms Lose Contracts with Processors

Canada is implementing a new pricing policy, which limits U.S. access to this important market. As a result, dairy processors in Minnesota, Wisconsin and the Northeast have terminated contracts with some dairy farmers. The Minnesota Milk Producers Association reports at least ten state dairy farms have been impacted by this decision. In central Wisconsin, Grassland Dairy has informed 75 farmers that it will not accept their milk after May 1. This comes at a time when Midwest dairy processors are operating at capacity and are unable to take on additional milk supplies. Former Agriculture Secretary Tom Vilsack, who now leads the U.S. Dairy Export Council, wants state and federal officials to take action. “This is really unfortunate because these producers have made investments and made plans based on this long-term relationship and are being told in a relatively short time that it is over.” Vilsack said ongoing negotiations between the U.S., Canada and Mexico through NAFTA may be the next best option to address this trade issue.