Bushra Griffith
There are several reasons why Canadian cheese is not widely available in the US. Firstly, smaller Canadian cheesemakers struggle to keep up with the demand in the Canadian market, making it challenging to supply the US market. Additionally, Canadian milk prices are supply-managed to support dairy farmers through import tariffs, resulting in higher prices for Canadian cheese compared to American and European products. The import and export quota systems between the two countries also pose challenges for cheesemakers aiming to cross the US-Canadian border. Furthermore, Canadian cheese may be less accessible in the US due to the higher production costs absorbed by American artisan cheesemakers, making it difficult to compete with larger commodity operations that can offer lower prices.
| Characteristics | Values |
|---|---|
| Canadian cheese is expensive | Due to official methods for controlling dairy products and supporting farmers, Canadian cheese is more expensive than American cheese. |
| Lack of supply | Some smaller Canadian cheesemakers cannot keep up with the demand from the Canadian market, making it difficult to supply the US market. |
| Trade hurdles | Import and export quota systems designed to give domestic cheese producers a competitive edge make it difficult for Canadian cheese to enter the US market. |
| Milk prices | Canadian milk prices are supply-managed to support dairy farmers, making the final product more expensive than American cheese. |
| American cheese illegal in Canada | Recombinant bovine somatotropin (rbST), an artificial hormone used by some farmers to increase a cow's milk production, is banned in Canada. This makes American cheese illegal in Canada. |
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What You'll Learn
- Canadian cheese is more expensive to produce than American cheese
- There is a high demand for Canadian cheese in Canada, leaving less for export
- There are strict import and export quota systems in place
- Some American cheese is banned in Canada due to an ingredient
- The US has a wider variety of cheeses than Canada
Canadian cheese is more expensive to produce than American cheese
In addition to higher milk prices, Canadian cheese producers also face higher production costs for other inputs such as fertilizer, energy, and animal feed. These costs are passed on to consumers in the form of higher cheese prices. Furthermore, Canada has implemented high import tariffs on cheeses from other countries, making it more expensive for Canadians to access foreign cheese options. This further contributes to the higher cost of cheese production in Canada relative to the US.
The supply management system in Canada was introduced after World War II when milk prices plummeted, and farmers struggled to make a profit. While this system has helped stabilize the industry and support Canadian dairy farmers, it has also led to higher cheese prices for consumers and made it challenging for small Canadian cheesemakers to keep up with domestic demand, let alone supply the US market.
It is worth noting that the difference in cheese prices between Canada and the US is not solely due to production costs. The US has a more diverse and abundant supply of cheese varieties, contributing to a more competitive market and potentially lower prices. Conversely, Canada's cheese market is more restricted, with a limited range of options available to consumers. This difference in market dynamics also plays a role in the disparity of cheese prices between the two countries.
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There is a high demand for Canadian cheese in Canada, leaving less for export
There is a high demand for Canadian cheese in Canada, which leaves less for export to the US. This demand is driven by a variety of factors, including the quality and taste of Canadian cheese, as well as the relatively higher prices of cheese in Canada compared to the US.
Firstly, Canadian cheese is known for its high quality and unique taste, which makes it popular among Canadians. The country has a strong dairy industry, with many small-scale and artisanal cheesemakers producing a diverse range of cheese products. These cheesemakers have built a strong domestic customer base, which creates a consistent demand for their products within Canada.
Secondly, the higher prices of cheese in Canada also contribute to the high domestic demand. After World War II, milk prices in Canada dropped significantly, causing financial hardship for dairy farmers. In response, the Canadian government implemented a supply management system that controlled the amount of milk produced and fixed milk prices. While this system supports farmers by guaranteeing a certain income, it also results in higher prices for consumers. As a result, Canadian cheese tends to be more expensive than its American counterparts, making it less price-competitive in the US market.
Additionally, the import and export quota systems between the US and Canada further complicate the trade of cheese between the two countries. These quotas are designed to protect domestic cheese producers and often require the involvement of middlemen, adding complexity and cost to the process of importing and exporting cheese.
The combination of high demand in the Canadian market, price differences, and trade complexities means that there is less Canadian cheese available for export to the US. This results in a lower supply of Canadian cheese in the US, contributing to the perception that it is difficult to find Canadian cheeses in the United States.
To increase the availability of Canadian cheese in the US, efforts could be made to streamline the import and export processes between the two countries, potentially through trade agreements or collaborations between cheese producers in both markets.
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There are strict import and export quota systems in place
The import and export quotas are not the only hurdles of international trade. Most American artisan cheesemakers price their products to absorb the true cost of cheese production, whereas larger commodity operations can externalize costs across a wider landscape to bring down prices for the consumer. This makes it difficult for smaller Canadian cheesemakers to supply the US market, as they often struggle to keep up with demand in Canada.
Additionally, the price of raw ingredients, specifically milk, plays a role in the strict import and export quota systems. Canadian milk prices are supply-managed to support dairy farmers both internally and through import tariffs, making their final products more expensive than those of their American and European counterparts. This enables Canadian dairy farmers to make more money directly from consumers but can leave customers paying higher prices.
The process of importing and exporting cheese under these strict quota systems can be complex and time-consuming. It often requires the involvement of middlemen and a deep understanding of the market dynamics on both sides of the border. For example, once a Canadian quota is secured, American cheesemakers must maintain a steady supply to keep their products flowing into the Canadian market. Any lack of supply could result in their products being dropped by Canadian importers in favor of more profitable or logistically efficient options.
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Some American cheese is banned in Canada due to an ingredient
The United States and Canada are close neighbors with many similarities, but their laws can be quite different. This is especially true when it comes to consumer products. Some items common in American stores are illegal in Canada. These bans are often due to health concerns, environmental issues, or different safety standards.
In addition to the rbST ban, Canada also prohibits the sale of raw milk and some unpasteurized cheeses, which are available in parts of the US. Canadian health officials say the risk of harmful bacteria is too high. This ban affects some artisanal American cheeses.
The differences in regulations and standards between the two countries can create challenges for the dairy industry and consumers on both sides of the border. It is important for producers and traders to be aware of these differences to ensure compliance with the relevant laws and to avoid disruptions in their operations.
Furthermore, the price of raw ingredients, specifically milk, also plays a role in the availability of Canadian cheese in the US. Canadian milk prices are supply-managed to support dairy farmers through import tariffs, making their final products more expensive than those of their American counterparts.
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The US has a wider variety of cheeses than Canada
Additionally, the process of importing cheese across the US-Canadian border is complex and costly, involving import and export quotas designed to favour domestic cheese producers. This creates a barrier for Canadian cheesemakers looking to enter the US market. Furthermore, American artisan cheesemakers price their products to include the true cost of cheese production, which can result in higher prices for consumers.
Another factor contributing to the limited variety of Canadian cheese in the US is the historical development of the Canadian cheese industry. After World War II, milk prices in Canada dropped significantly, prompting the Canadian government to implement a supply management system. This system included capping milk production, fixing milk prices, and imposing high import tariffs on foreign cheeses. While this helped dairy farmers financially, it also led to higher production costs passed on to consumers, making Canadian cheese relatively more expensive.
The regulations surrounding cheese production and sales also differ between the two countries. For example, recombinant bovine somatotropin (rbST), an artificial hormone used to increase milk production, is banned in Canada due to animal health concerns but is permitted in the US. These differing standards can create legal obstacles for the import and export of cheese between the two countries.
Despite these challenges, there is still some cross-border trade in cheese between the US and Canada. In 2023, American-made cheese worth $131 million was exported to Canada, while Canadian cheese worth $44 million entered the American market. However, the impact of these exchanges on the overall variety of cheeses available in each country is unclear.
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Frequently asked questions
Canadian cheese is harder to come by in the US due to a variety of factors, including import and export quota systems, higher prices of raw ingredients, and smaller Canadian cheesemakers struggling to keep up with demand in their own market.
Import and export quotas are designed to give domestic cheese producers a competitive edge, which makes it harder for Canadian cheese to enter the US market. American artisan cheesemakers must secure and maintain Canadian quotas to keep their products available in Canada.
Canadian milk prices are supply-managed to support dairy farmers through import tariffs, making their final products more expensive than those of American and European cheesemakers.
Yes, some smaller Canadian cheesemakers have difficulty keeping up with demand in the Canadian market, which makes it challenging for them to expand into the US market.
