Thanks, Pierre.
Good afternoon.
The question is this: What role does supply management play during the pandemic?
The timelines of the dairy sector's response to the challenges caused by COVID-19 are a testament to the agility and the efficiency of Canada's system of supply management, which has enabled a coordinated response to the impacts of the pandemic throughout the dairy supply chain, while limiting impacts on Canadian consumers.
Let's take a look at what is happening in the dairy sectors in the U.S. and the EU, which, in the absence of supply management, were not well positioned to act quickly or collectively in response to the crisis. As an example, according to Dairy Farmers of America, dairy farmers in the U.S. were forced to dispose of 14 million litres of milk per day at the peak of the crisis. Without any measures on production controls, the European Milk Board, which represents dairy farmers in the EU, asked for funding to help reduce production, while the U.S. government recently announced a $2.9-billion bailout for dairy farmers in that country.
What support does the dairy sector then need from government?
Despite the losses, at this time dairy farmers are not seeking financial support from government to address the impacts of COVID-19. Why? Well, it's because supply management has proven its ability to limit the impacts on our industry compared to other industries and countries. Unfortunately, supply management is not designed to offset the loss of dairy production transferred to dairy farmers in other countries. This is a net loss of market. To be clear, this means that a greater number of dairy products on our shelves will be made from foreign milk. In fact, by 2026, 18% of our Canadian dairy production will have been transferred to imports from abroad.
If you want to support your domestic dairy industry, if you support a safe and secure Canadian dairy supply chain, we ask that you formalize the commitments to mitigate the impacts of trade agreements and announce a schedule for the compensation.
In closing, dairy farmers want to do their share to feed the nation. This is why beyond the existing programs, dairy farmers across the country have donated over $10 million in products to Canadian food banks to support Canadians in need. It's also why we remain hard at work on farms across this great nation producing high-quality, domestic agricultural products that will help cement our food security.
Thank you.