Well, there's always a market at a price. Canada can probably develop niche markets at very high prices, but it would never, ever, be a volume exporter of Canadian dairy products; we're simply priced out of the world market.
Our company intended to build a Canadian export-based business. After we lost at the panel in 2002, we actually went to every provincial government in this country to see if there was interest in setting up a WTO-compliant, exportable supply of milk within each province. We were rebuffed in every province. The result of that is that we have remained in the “export business”; we now export capital and jobs.
Since that time, we've invested in Argentina, where we now employ 1,000 people and are the third largest dairy processor. The reason we went to Argentina is that Argentina, like New Zealand, produces milk at an internationally competitive price, which allows us to serve export markets. We recently invested in Europe, where the price of milk is less than it is here, which gives us access to the European market for product. So while there are possibilities for specialty or niche products from Canada, in terms of volume it's not even thinkable.
The other problem that arises is that prior to December 2002, Canada and the supply management system were able to ship offshore the surplus production here—the structural surplus and any other surplus that was produced. That door was slammed shut, and, frankly, that is one of the greatest challenges facing the Canadian dairy industry. If we continue to create or form or manage a supply management system on the basis of the domestic requirement for butter fat, we will always have a structural surplus, which will always cost producers, or the industry, or the taxpayer, funds to clear the market, if we're going to maintain the price levels we have. And we're not opposed to the price levels domestically; a bankrupt farmer is of absolutely no use to a dairy processor.
It's not a question of trying to beggar-your-neighbour here; it's a question of how do you develop growth that would allow everyone to grow while maintaining those prices? We have just experienced a significant or major price escalation, which is having a market impact 12 months later, which is compounding the issue. It is all tied into this confusion that is focused on MPCs, which I believe are a scapegoat for a real or fundamental issue here.
This is a good system; it's been good to everyone. But it has to change to meet current realities in the marketplace. While changes have been made, in my opinion, for what it's worth, they have not been sufficient to maintain the industry's momentum, to maintain the ability of processors to reinvest, or indeed.... I am constantly amazed that dairy farmers themselves risk their money in buying additional quota; I can't understand it under the circumstances.