Minister Strahl Invites Dairy Industry Leaders To Form a Working Group To Address Industry Challenges (April 15, 2006)

Ottawa, ON, April 15, 2005 – Federal Minister of Agriculture and Agri-Food and Minister for the Canadian Wheat Board Chuck Strahl announced today that he has invited Jacques Laforge, President of the Dairy Farmers of Canada, and Andy MacGillivray, Chair of the Dairy Processors Association of Canada, to form a Working Group to look at developing common industry positions on renewing growth in the dairy sector and addressing key concerns, such as compositional standards for milk utilization and ingredients. The Minister has asked Ted Bilyea, Co-Chair of the Canadian Agri-food Marketing Council, to be the facilitator for the Working Group.


“The success of the Canadian dairy industry depends on producers and processors working closely together to ensure that the needs and demands of consumers are met,” said Minister Strahl. “Maintaining stability and predictability is essential to the interests of both producers and processors and the overall health of the industry.”


One of the more immediate concerns expressed by dairy producers is the use of various ingredients, particularly milk protein concentrates (MPCs), in place of milk for the production of dairy products. The Government has already moved to control the importation of certain MPCs and will continue to examine the impacts of other MPCs in order to take appropriate action if necessary.


Minister Strahl has asked the Working Group to develop a strategy for growth in the industry; to develop common positions on compositional standards for milk utilization and ingredients; to deal with pricing and profitability issues; and to determine how the industry and government can work together to develop plans for dealing with other future challenges. Recommendations from the Group, which would be non-binding, would be provided to the Minister over the next two months on short-term issues, and would include a report on longer-term issues by the fall.


“I am placing my confidence in the good faith efforts of these leaders to arrive at solutions that can be supported by all sides, and that are in the best overall interests of the Canadian dairy industry,” said Minister Strahl.


The Government will continue to work very closely with all elements of the dairy industry to help address the challenges it is facing and to ensure the continuation of a strong and effective system of supply management.