February 1, 2005

 

 

Canadian producers unsatisfied despite milk price climb

 

Canada's Quebec Federation of Dairy Producers says the hike in milk prices will not be enough to bail out farmers suffering since the onset of the mad cow crisis.

 

Milk prices will go up between four and seven cents per litre Tuesday in several provinces.

 

The rate was raised by the Canadian Dairy Commission help farmers hurt by the mad cow crisis.

 

Only about half of that money will find its way to farmers, says Marcel Groleau, president of the Quebec Federation of Dairy producers, while the rest will end up in the pockets of retailers and distributors.

 

Besides, only the price on certain kinds of milk will go up, added Groleau.

 

Since the mad cow disease began in May 2003, after years of a BSE-free status in Canada, many milk producers have lost tens of thousands of dollars with farmers' cost for producing milk exceeding revenues from dairy sales.

 

"We are still waiting for the Canadian government about a program that will help us until the end of the crisis," Groleau says.

 

Groleau says dairy farmers need a bailout from Ottawa, whether the United States opens its border to Canadian cattle in March or not.

 

In May 2003, veterinary officials in Alberta confirmed that a sick cow sent to a slaughterhouse in January of that year had been inspected, found to be substandard, and removed so that it would not end up as food for humans or other animals.

 

Soon after, the U.S., Japan, South Korea, Australia and other countries imposed temporary import bans of Canadian beef.

 

Many farmers have been reeling ever since.