I think that it always comes back to our ability to forecast what is going to enter. This is the basic principle enabling us to plan our production. Right now, it is impossible to forecast because the product corresponds to number 35.04. The situation is aggravated further since each kilogram of milk protein concentrate with a protein level of 87.5 per cent displaces 2.57 kilograms of skim milk powder, which we then buy. This situation is totally unacceptable. The same processors who use and import protein concentrates, dry our protein to turn it into milk powder. The producers pay them a margin, and we then buy back the product.
We know that there is a limit as to how much milk can be displaced. However, this quantity can reach a certain level if technology is improved in the plants, among other things. However, we now find ourselves facing a loss of $500 million because we cannot do anything with this milk powder except sell it on the animal feed market. We cannot export it. Because of supply management, we have inherited this liability. We may enter into a cost-sharing arrangement, so that we are not the only ones to bear this burden. In the United States, when the surplus of milk powder hits a certain level, the government buys the powder. The same thing occurs in Europe, where the government sells it back. This is tantamount to an export subsidy.
Here, nobody does anything whatsoever. The processors certainly do not take our side and the government does not know what to do about this situation. We are trying to find some solutions. Meanwhile, our wallet is taking a hit. As long as the situation persists, we will have the same type of problem as that seen in the butter oil and sugar sectors.