Alberta
Canadian dairy plant becomes unlikely symbol of defiance for Ukrainian farmers

KRASNE, Ukraine — The cows on Lyuba Pastushok’s farm are like her “cheeky children,” she explained in Ukrainian as she walked among her growing herd, gently cooing to them and softly petting their heads.
A few years ago there were only five cows on her small family operation in Holoskovychi, a rural community an hour and a half east of the nearest city of Lviv, in western Ukraine.
Now she tends to 25 cows, six of which she bought after Russian forces invaded the country.
Wrapped up against the cold with a kerchief tied over her head, the Ukrainian matriarch pointed out each by name, her voice full of motherly pride.
She credits her success to the creation of a Quebec-style co-op in her community, and said a new Canadian dairy plant in the area is likely to help the local industry grow even more.
The project has become an unlikely symbol of defiance in the face of the Russian invasion.
Russia is stepping on Ukrainian farmers, Pastushok said through a translator during an interview in her farmhouse kitchen, “but we are developing in spite of them. We are who we are — Ukrainians.”
The $3-million dairy plant, funded by Global Affairs Canada, will produce milk, yogurt, sour cream and hard and soft cheeses using milk from the local dairy co-ops. Those co-ops will also have a stake in the management of the plant, which will employ 30 to 40 people.
Construction was already well underway when war broke out last year and disrupted every aspect of life in the now embattled country.
Investors at first shied away from putting their money into a project in conflict zone, said Camil Côté, the project officer for SOCODEVI, the Montreal-based development agency spearheading the project.
The invasion put a stop to the work for about three months, until Canada offered another $2 million to get it started again.
“Just like the whole of Ukraine, we survived the winter,” Côté said in an interview from Nicaragua.
“We have (had a) few dangerous situations near the plant,” said Andriy Blinovskyy, who manages the project on behalf of a corporation of local dairy co-ops called Nabil.
“We have missile explosion near the plant, when the electricity transformer station was destroyed maybe 10 kilometres from the plant.”
That explosion late last year forced workers to continue building through the winter without heat, using a generator for power.
When it’s up and running, the plant will mainly supply the Lviv region with locally produced products. The equipment and the brand new, gleaming milk tanks in each room carry Canadian flags.
“The factory is perceived as our own. Our country, our home, our family,” Pastushok said.
SOCODEVI first brought the Quebec-style co-op to Ukraine nearly a decade ago. It allows local producers with just a few cows to band together to negotiate for better prices.
“The needs in Ukraine are very similar to to what they were in Canada 50 or 60 years ago,” said Erin Mackie, a program manager for SOCODEVI.
“They were created because farmers needed to have that collective response in order to get the value added and to be able to generate a better income for themselves,” she said.
Ukrainian farmers were initially hesitant to sign on, since the co-operative model conjured memories of state-run operations under the Soviet Union. Mackie said the development agency worked to convince them that the plans was, in fact, democratic and capitalist.
The model is based largely on Quebec’s Agropur, the largest dairy co-op in Canada.
“This is how Agropur started, with a small co-op where you process milk,” said Céline Delhaes, who sits on the co-op’s board of directors, in an interview from her farm outside of Montreal.
She said it’s much easier for farmers to negotiate fair prices as a group than to negotiate one-to-one with large companies to process and sell their milk. She also said the profits will stay in local communities.
Delhaes travelled to Ukraine several times before the COVID-19 pandemic to coach local farmers and help them with the administrative aspect of setting up their co-ops.
The Ukrainian programs were growing steadily, as more and more farmers like Pastushok signed on, before the war began.
“People started selling cows. Some due to their illness, while young people went to work abroad. And it turned out that it became very expensive to cultivate the land,” Pastushok said.
She hopes more farmers in the region will join.
“We need to unite. Like this proverb, ‘One man in the field is not a warrior,'” she said.
Mackie said the aim is to create a national movement in Ukraine, in line with Canada’s dairy industry, and Canada’s decision to continue with the plant’s construction is a show of faith in the country’s future.
“It’s faith in the Ukrainian people, that they would overcome this,” she said.
The milk plant is by far the most modern-looking building in the area, its white siding and black roof standing out in stark contrast to its wood and stone neighbours.
Blinovskyy said he hopes it will be ready to accept milk from local cows this spring.
“It’s very powerful sign for all — for our enemies, for our friends, that Canada supports Ukraine and that the plant will start producing,” he said.
This report by The Canadian Press was first published March 15, 2023.
Laura Osman, The Canadian Press
Alberta
Is Canada’s Federation Fair?

David Clinton
Contrasting the principle of equalization with the execution
Quebec – as an example – happens to be sitting on its own significant untapped oil and gas reserves. Those potential opportunities include the Utica Shale formation, the Anticosti Island basin, and the Gaspé Peninsula (along with some offshore potential in the Gulf of St. Lawrence).
So Quebec is effectively being paid billions of dollars a year to not exploit their natural resources. That places their ostensibly principled stand against energy resource exploitation in a very different light.
You’ll need to search long and hard to find a Canadian unwilling to help those less fortunate. And, so long as we identify as members of one nation¹, that feeling stretches from coast to coast.
So the basic principle of Canada’s equalization payments – where poorer provinces receive billions of dollars in special federal payments – is easy to understand. But as you can imagine, it’s not easy to apply the principle in a way that’s fair, and the current methodology has arguably lead to a very strange set of incentives.
According to Department of Finance Canada, eligibility for payments is determined based on your province’s fiscal capacity. Fiscal capacity is a measure of the taxes (income, business, property, and consumption) that a province could raise (based on national average rates) along with revenues from natural resources. The idea, I suppose, is that you’re creating a realistic proxy for a province’s higher personal earnings and consumption and, with greater natural resources revenues, a reduced need to increase income tax rates.
But the devil is in the details, and I think there are some questions worth asking:
- Whichever way you measure fiscal capacity there’ll be both winners and losers, so who gets to decide?
- Should a province that effectively funds more than its “share” get proportionately greater representation for national policy² – or at least not see its policy preferences consistently overruled by its beneficiary provinces?
The problem, of course, is that the decisions that defined equalization were – because of long-standing political conditions – dominated by the region that ended up receiving the most. Had the formula been the best one possible, there would have been little room to complain. But was it?
For example, attaching so much weight to natural resource revenues is just one of many possible approaches – and far from the most obvious. Consider how the profits from natural resources already mostly show up in higher income and corporate tax revenues (including income tax paid by provincial government workers employed by energy-related ministries)?
And who said that such calculations had to be population-based, which clearly benefits Quebec (nine million residents vs around $5 billion in resource income) over Newfoundland (545,000 people vs $1.6 billion) or Alberta (4.2 million people vs $19 billion). While Alberta’s average market income is 20 percent or so higher than Quebec’s, Quebec’s is quite a bit higher than Newfoundland’s. So why should Newfoundland receive only minimal equalization payments?
To illustrate all that, here’s the most recent payment breakdown when measured per-capita:
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For clarification, the latest per-capita payments to poorer provinces ranged from $3,936 to PEI, $1,553 to Quebec, and $36 to Ontario. Only Saskatchewan, Alberta, and BC received nothing.
And here’s how the total equalization payments (in millions of dollars) have played out over the past decade:
Is energy wealth the right differentiating factor because it’s there through simple dumb luck, morally compelling the fortunate provinces to share their fortune? That would be a really difficult argument to make. For one thing because Quebec – as an example – happens to be sitting on its own significant untapped oil and gas reserves. Those potential opportunities include the Utica Shale formation, the Anticosti Island basin, and the Gaspé Peninsula (along with some offshore potential in the Gulf of St. Lawrence).
So Quebec is effectively being paid billions of dollars a year to not exploit their natural resources. That places their ostensibly principled stand against energy resource exploitation in a very different light. Perhaps that stand is correct or perhaps it isn’t. But it’s a stand they probably couldn’t have afforded to take had the equalization calculation been different.
Of course, no formula could possibly please everyone, but punishing the losers with ongoing attacks on the very source of their contributions is guaranteed to inspire resentment. And that could lead to very dark places.
Note: I know this post sounds like it came from a grumpy Albertan. But I assure you that I’ve never even visited the province, instead spending most of my life in Ontario.
Which has admittedly been challenging since the former primer minister infamously described us as a post-national state without an identity.
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Alberta
Big win for Alberta and Canada: Statement from Premier Smith

Premier Danielle Smith issued the following statement on the April 2, 2025 U.S. tariff announcement:
“Today was an important win for Canada and Alberta, as it appears the United States has decided to uphold the majority of the free trade agreement (CUSMA) between our two nations. It also appears this will continue to be the case until after the Canadian federal election has concluded and the newly elected Canadian government is able to renegotiate CUSMA with the U.S. administration.
“This is precisely what I have been advocating for from the U.S. administration for months.
“It means that the majority of goods sold into the United States from Canada will have no tariffs applied to them, including zero per cent tariffs on energy, minerals, agricultural products, uranium, seafood, potash and host of other Canadian goods.
“There is still work to be done, of course. Unfortunately, tariffs previously announced by the United States on Canadian automobiles, steel and aluminum have not been removed. The efforts of premiers and the federal government should therefore shift towards removing or significantly reducing these remaining tariffs as we go forward and ensuring affected workers across Canada are generously supported until the situation is resolved.
“I again call on all involved in our national advocacy efforts to focus on diplomacy and persuasion while avoiding unnecessary escalation. Clearly, this strategy has been the most effective to this point.
“As it appears the worst of this tariff dispute is behind us (though there is still work to be done), it is my sincere hope that we, as Canadians, can abandon the disastrous policies that have made Canada vulnerable to and overly dependent on the United States, fast-track national resource corridors, get out of the way of provincial resource development and turn our country into an independent economic juggernaut and energy superpower.”
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