TPP means less milk will be produced on P.E.I. say farmers

The chair of the Dairy Farmers of P.E.I. says he is resigned to the fact a little more than three per cent of the Island's milk market will be lost to the Trans-Pacific Partnership.

The TPP trade deal includes 12 countries that border on the Pacific Ocean.

Harold MacNevin said farmers didn't want to give up any percentage of the market, but he said they were bracing for worse. Last week, CBC reported the U.S. was lobbying for 10 per cent of the Canadian dairy quota.

In the deal announced Monday, Canada agreed to open up 3.25 per cent.

"It's that much less milk that we'll be producing in Canada, including P.E.I., 3.25 per cent," said McNevin.

"We roughly produce 100 million litres a year, so that will be 3.25 million litres that will not be produced by P.E.I. producers. So obviously it's not a substantial impact, but it is an impact."

MacNevin estimates that P.E.I.'s 175 dairy farmers will lose about $2.5 million a year from the lower milk production, or the equivalent of the output of five Island dairy farms, but he hopes the compensation package Ottawa is offering will make up for that.

In terms of access to new markets, MacNevin said he believes Island specialty cheese producers will have the most to gain from increased exports.