What is it with dairy farmers on both sides of the border ignoring the laws of supply and demand? I’m not sure how to read this one as it doesn’t make sense to me. The entire premise of the article boils down to this:
Ontario farmers, frustrated with the arrangement, last April dramatically cut the prices on Canadian ultrafiltered milk. Other provinces plan to follow suit, posing a dire threat to U.S. farms.
This statement proves four things:
1. Canadian milk producers have a lot of play in the price of milk
2. The dairy producers baleful wailing on the need of the cartel are hollow.
3. American producers also benefit from artificially inflated Canadian prices.
4. Consumers are getting shafted.
My confusion with the article is my question, “If Canada relaxes the dairy cartel, there will be more milk producers. It will further enlarge the glut in the milk market. This would help American dairy farmers how?”