A trade analyst discussing USMCA suggests maintaining access to Mexico is more important to U.S. dairy farmers than addressing Canada’s milk pricing system.
Rabo AgriFinance global sector strategist Mary Ledman says the notion that Canada would do away with its Class Six and Seven pricing under the new agreement is somewhat of a misnomer.
“They still have an advantage for milk being used in skim milk powder, nonfat dry milk powder, infant formula, and some other products.”
She says Canadians are using their make allowance in price calculation, which is about twice as much as the U.S.
