Global supply.

[Gilroy]

I got to thinking about this when I was watching telly and see the US airforce flying in baby formula all the way from Germany because one of their main plants has been shut down.

So I am thinking why is Canada not supplying baby formula to our friends in the USA and best trading partners.

Well it turns out we have one of the biggest plants in Kingston for making formula but guess what:



"But, most Canadians don’t know Canada is home to a large baby formula plant. Canada Royal Milk, owned by China's Feihe International, built a plant in Kingston, Ont. in 2017. It is the largest baby formula plant in Canada by far. However, all its products are shipped back to China. The plant itself uses Canadian cow and goat milk. For any experts who understand how the Canadian dairy sector works, this is troubling."

https://canadiangrocer.com/could-can...ormula-run-dry

So the Chinese basically take it all back home and they also import the best from Germany as well.

Further investigation reveals a rather strange reason



"Charlebois says it was not required to provide the product to Canada, because it was being built during NAFTA renegotiations.
"They thought the plant would become a threat to the three main manufacturers in the US," he says. “And that’s why, ironically, even though the plant is 30 kilometres away from the border it cannot ship baby formula to the states and help.

https://ottawa.ctvnews.ca/kingston-b...pert-1.5909696

[greatwhite]

Interesting it was built during the time Trudeau has been in Power.

[Gilroy]

Interesting it was built during the time Trudeau has been in Power.

Maybe ask Harper because he signed away all sorts of decisions when he made that FIPA deal with China for 31 years - with a secrecy clause meaning we can NOT know anything about it?

[greatwhite]

Seems to me this has nothing to do with it. All on Trudeau.

Maybe ask Harper because he signed away all sorts of decisions when he made that FIPA deal with China for 31 years - with a secrecy clause meaning we can NOT know anything about it?

[johnjyb]

Alot of money and promises of jobs from the provincial level as well with the odd junket to China for glad-handing and site-seeing. The jobs during construction kind of happened, but quite a few TFW were on site due to "special skills" ie not too worried about safety procedures putting in pipe and raising concrete slab walls, many staying in position without unexpectedly crashing to the ground. The workforce in the plant today still has the same issues. Overall I would give this plant a C- at best, and more likely closer to a D-.
John

[73hunter]

What’s TFW ?

[3030]

What’s TFW ?

Temporary foreign worker

[gbk]

The plant was built 2019-receiving 225 million dollars Government funding for the Project ...WOW



The plant supplies zero product for Canada,and employs total( only!!! )150 employees.
1.5 million dollars per job created!

Likely quite some of them are not even Canadians.


WOW

[Gilroy]

The plant was built 2019-receiving 225 million dollars Government funding for the Project ...WOW



The plant supplies zero product for Canada,and employs total( only!!! )150 employees.
1.5 million dollars per job created!

Likely quite some of them are not even Canadians.


WOW

Well it gets worse our Governments did not even get any guarantee that they would employ any Canadians.

Its like me going to the PRC and saying, hi I am Canadian and would like to open a baby formula plant in Beijing, how about you give me 225 million and after I get the plant finished I am not going to employ any Chinese's workers and I will be shipping all the formula back to Canada. LOL

[Marker]

Banks give financing using sales contracts as asset backed security, without those contracts construction could not happen, and jobs would not happen. When any one-sided or no-compete contracts expire then the manufacturer will be able to supply any market they desire. If there is enough long-term room in any market any manufacturer can do the same based on sales contracts at the generic level of goods (ie not the same brand). In effect what is occurring is the reverse of product coming from China which will increase the demand for the CAD and off-set the trade imbalance. When a domestic company exports goods the domestic company reaps the profit, we need more exports where Canada has an economic advantage, though I do not know that is the case here.