CNY farmers brace for Canadian trade policy changes

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Christie: new at 11, panic is rippling through central new york's dairy farms as canada tries to throw off the competition.

Rod: canadian leaders want to make it more expensive to import some milk products from the u-s.

Newschannel 9's tammy palmer shows us how the new trade policy would impact a company in cayuga county.

Tammy business is growing at cayuga milk ingredients on the edge of auburn.

But, they're bracing for trouble.

Keven bucklin, coo cayuga milk ingredients: "roughly about $30- million of revenue will be gone through this product if it is shut down in canada."

Tammy the product is ultra filtered milk - what's left behind after a maze of pipes remove water and concentrate the protein content.

Bill morgan, dairy farmer, plant co-owner: "they primarily use it in cheese manufacturing and canada is looking to place trade barriers to keep us from moving that milk into their country."

Tammy palmer, auburn: "most of the ultra filtered milk that is produced at this plant is exported....about 30% to canada - and all of the milk used to produce this comes from new york state dairy farms."

Keven bucklin, coo, cayuga milk ingredients: "having a large portion of it moved out of canada will either force us to either look for other markets here in the u.s. or we'll have to look at other opportunities of possible downsizing or reducing some of our output out at the plant."

Tammy the third largest dairy producer in the country, new york is playing defense.

Senator charles schumer: "i met with the canadian ambassador and said if you do this i'm going to do everything i can to oppose you and we will try to block some canadian products that you want to sell here from coming, if you do this to us."

Bruce krupke, northeast dairy foods association: "we've got this great relationship right now and erecting these trade barriers - could have a major ripple effect for other products such as beef or lumber and other agriculture products - so we don't want to see that."

Tammy a threat bubbling to the surface as local farmers face a new outlook with their neighbors to the north.

Tammy palmer, newschannel 9.

Rod: the cayuga county plant is owned by several dairy farmers and has nearly 70 full time workers.

Senator schumer says canada is planning to implement the new trade