Neil Van Ryssel spent five years going to meetings where the dairy industry argued how to share revenues and markets.
He hoped that during his term as chair of Manitoba Milk Producers, he would see a national pooling agreement.
But now he says that wish was naive.
It will take an exterior force to unite the industry on pooling, said Van Ryssel, pointing to a trade challenge by the United States and New Zealand.
The challenge was examined by a panel, which will issue its first report on its deliberations Feb. 5.
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The panel will rule on whether Canada’s special milk classes are acceptable under World Trade Organization rules.
Under these classes, Canadian processors can buy milk at world prices, which are usually lower than Canadian prices, for ingredients subject to foreign competition.
The panel’s decision could have far-reaching implications for the dairy industry, so in the meantime, negotiations on issues like pooling and the optional export program have come to a halt.
The industry has not been working toward a common goal, said Van Ryssel.
“Every time we go to a national meeting, we all carry provincial baggage,” he said, adding representatives from provincial governments are particularly guilty of promoting regional interests.
“We’re simply too far from one national vision of where the industry wants to go.”
Today, there are two pooling agreements in Canada. Manitoba is part of both.
The western milk pool is working well, said Van Ryssel. It stretches from Thunder Bay, Ont., to Victoria, B.C.
But since February, Manitoba has been withholding the money it would usually transfer to the eastern pool, which includes 85 percent of the milk produced in Canada.
Until provinces in the eastern pool agree to share all markets, including exports, Manitoba will keep its money out, said Van Ryssel.
The chair of the Canadian Dairy Commission also said provinces need to work together more.
If the WTO panel rules against Canada, the industry will be forced to rapidly change, said Guy Jacob at the annual meeting of the Manitoba Milk Producers.
If Canada wins, the industry still faces “intense pressure” in the upcoming round of world trade talks starting in 1999.
Jacob expects the industry will have to make more concessions during this round. In 10 or 15 years, possibly more, he believes the supply management system will no longer exist.
The president of Dairy Farmers of Canada said his group is setting up an international trade department within its ranks to evaluate positions raised by other countries during the negotiations, and advise Canadian negotiators.
“From my view, it’s going to be a long, tough round,” said Barron Blois.
