Kevin Ellis knew his company, Cayuga Milk Ingredients in Aurelius, would take a hit when Canada implemented its new dairy pricing policy related to ultra-filtered milk. What he didn’t know is how soon the trade rules would affect sales.
“The impact is our sales went to zero on April 1 because we have no sales into Canada at this point,” said Ellis, CEO of Cayuga Milk Ingredients. “I had a suspicion that the business would go away over time. I had no idea it would go away overnight.”
With Canadian firms no longer buying ultra-filtered milk from Cayuga Milk Ingredients, Ellis said the company lost $30 million in export sales. That’s a major challenge on its own, but is exacerbated by the current milk supply situation in the Northeast.
Ellis said dairy farmers are increasing their output even as there is a reduction in sales to Canada. There’s also “flat-line growth” in other dairy manufacturing sectors within New York, he added.