Dairy farmers are paying close attention to developments surrounding the trade negotiations between Canada and the European Union.

Both sides say they are still aiming to complete a trade deal by the end of this year.

"When it comes to trade, our focus is less on the WTO at this time and more on the Canada-EU negotiations," says David Wiens, Chair of Dairy Farmers of Manitoba. "We know the Canadian government is very supportive of supply management, and so they are pursuing a kind of trade agreement that would continue to benefit, not undermine, the Canadian dairy industry."

"We continue to watch those talks very closely," he says.

EU negotiators say aren't trying to end the supply management system, but only trying to gain increased quota access for European cheeses. The EU's ambassador to Canada last week said increased access for Canadian beef and pork into Europe will require changes to dairy import regulations.

Wiens says the Canadian dairy industry is also paying close attention to the trade talks between Canada and Japan and the TransPacific Partnership negotiations, which Canada is trying to gain entry into.