When dairy processor leader Andrew MacGillivray arrived at the annual Dairy Farmers of Canada convention last week, he was preparing to deliver a message of peace and reconciliation.
But instead he received a cold reception from DFC farmer delegates who complained that processor actions undermine farm incomes and often contradict promises of co-operation.
“Producers simply don’t see processor actions that indicate they understand our situation and are prepared to help,” said DFC president Jacques Laforge. “They see a great gap between their words and actions and it leads to frustration, even anger.”
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Former DFC president Baron Blois from Nova Scotia also challenged the sincerity of dairy processors.
Three years ago, the leadership of the processors and dairy farmers agreed to act co-operatively in an effort to expand the dairy industry and its market share, Blois said.
“Since then, instead of working together, we’re grown further apart. Why should we believe it is going to happen this time?”
Dairy farmers say processors are importing an increasing volume of cheap dairy ingredients that undermine Canadian milk sales.
MacGillivray, president of Toronto-based Gay Lea Foods and chair of the Dairy Processors’ Association of Canada, said the dairy product business is competitive and companies have no choice but to use cheaper ingredients if they are available.
He noted that during the past year, dairy product sales have decreased in Canada but instead of working together to fight the competition, companies and farmers have been at each other’s throats.
“That does not allow us to meet the competition. This approach cannot be allowed to continue,” he said.
DFC delegates listened to McGillivray’s speech in silence, applauding only when DFC members criticized processor practices.
British Columbia delegate Stan Van Keulen asked MacGillivray to promise that processors would not use cheaper imported dairy protein substitutes at the expense of Canadian farmers.
MacGillivray refused, insisting that there are other ways for the two sides to limit the damage.
