Canada Dairy Price Freeze Announced for 2010- USDA FAS

Canada Dairy Price Freeze Announced for 2010- USDA FAS

Earlier this month the Canadian Dairy Commission (CDC) announced that support prices for skim milk powder and butter will remain constant at C$6.1783 per kilogram and C$7.1024 per kilogram, respectively. Support prices are the prices at which the CDC buys and sells butter and skim milk powder to balance seasonal supply and demand changes on the domestic market. Support prices are also used as references by provincial boards to price milk sold to processors who manufacture dairy products such as butter, skim milk powder, cheese, yogurt and ice cream. The CDC argued that despite the economic downturn, the demand for dairy products remained stable during the 2008-2009 dairy year. As reported in previous TWICA’s, the high price of dairy products in Canada has become onerous for consumers and intermediate producers and has hurt Canadian dairy producers’ ability to compete globally. The Canadian Restaurant and Foodservices Association (CRFA) appeared before the commission arguing for a reduction in the price of industrial milk, noting that dairy prices need to be rolled back by 16.5% to bring them in line with the consumer price index. CRFA further contends that even though dairy production costs have declined by nearly 2% this year, the price of industrial milk has skyrocketed by 60%. In Canada, the restaurant industry is a major dairy customer, buying nearly C$2.5 billion in dairy products annually.

Canada family farm in decline - USDA FAS

From the USDA FAS - This Week in Canadian Agriculture

In Canada the traditional family farm is in decline. According to Statistics Canada, from 1996 to 2006, the number of farms in Canada dropped by more than 47,000 to 229,000, but the amount of land in active agriculture increased by more than 500,000 hectares. This seems to indicate that more of the food production in Canada is conducted by large corporations. This growth of corporate farm ownership coincides with a steep rise in Canada's farm exports. According to Agriculture and Agri-Food Canada, food exports jumped 23.6% from 2007 to 2008 to C$38.9 billion. Over the same period, the dollar value of food imports to Canada climbed 16% to C$27.7 billion. Roughly half of all agricultural commodities produced in Canada are exported. With this change in the agricultural environment some Canadians are calling for a stronger national food policy to ensure the sustainability of the Canadian family farm and secure Canada’s local food source. Additionally, in recent years the local food movement has gained momentum.

China to aid Cuba with 1.1 million dollar irrigation project

China to aid Cuba with 1.1 million dollar irrigation project

(AFP) – 8 hours ago

HAVANA — China will aid Cuba with a 1.1 million dollar irrigation project in the communist-run island's Guantanamo province, the Prensa Latina agency reported Monday.

China is one of Cuba's main political allies and its second business partner after Venezuela.

The latest project, including funding from a donation promised by China in 2007, aims to help restore drainage and irrigation systems in the east of the island to improve productivity, the Cuban agency said.

The project, to be overseen by Chinese company Liaoning Zhongyi International Economic and Technical Cooperation, includes the supply of trucks, tractors, trailers and other equipment, the report said.

Trade between Cuba and China represents more than 2.6 billion dollars per year, and China is a key source of credit for the impoverished island.