Keeping supply management is economic suicide

[border_humper]

Andrew Richter: Keeping supply management is economic suicide

Government controlled quotas and prices threatens free trade deal with U.S.

nationalpost.com

There is no need in this article to review Canada’s commitment to this program. Suffice to say all of the major political parties remain strongly supportive of it, and thus regardless of which party is in power allegiance to supply management seems to unite them (not to mention that a parliamentary bill passed last month aims to ensure that no concessions are even possible in trade talks).

On the surface, the question is absurd. Supply management primarily benefits approximately 10,000 dairy farmers (down from 150,000 when the program began) most of which are in Quebec and Ontario. These farmers earn relatively high incomes and enjoy price guarantees that no other Canadian farmers receive. But the program results in higher food costs for 40 million Canadians.As for the question of how much Canadians pay as a result of supply management, studies have shown that the average Canadian family spends up to $600 more per year because of it, and they have less choice at the grocery store. These extra costs are borne most heavily by lower income citizens, who pay a higher proportion of their income on groceries.

Thus a question worth considering is what accounts for this support. No doubt part of the explanation is the power of several key domestic interest groups. Both the Dairy Famers of Canada and the Egg Farmers of Canada spend heavily on ads promoting it, and they have succeeded in persuading many Canadians that supply management results in safer products and more consistent supply.

In addition, supply management has strong support from most of Canada’s media. The Toronto Star and the CBC go apoplectic at the mere mention of changes to it, and the generally centrist Globe and Mail is also quite supportive, in spite of its (supposed) commitment to free markets. Only National Post offers consistent criticism.

And lastly, supporters have succeeded in persuading Canadians that the program’s demise would decimate our dairy sector, as they argue that domestic producers could not possibly compete with larger international players.

That last argument is particularly questionable, as there is little reason to doubt that in the absence of state-controlled quotas and prices, Canadian dairy farmers would become more efficient and innovative.

School me again on why supply management is so great? Because some American milk have bovine growth hormone? $600 in this economy is a lot.

 

[Hirudinea]

Andrew Richter: Keeping supply management is economic suicide

Government controlled quotas and prices threatens free trade deal with U.S.

nationalpost.com

School me again on why supply management is so great? Because some American milk have bovine growth hormone? $600 in this economy is a lot.

border_humper
It's because Quebec wants it, although I'm not drinking American hormone milk. The fact is the Liberals are the Quebec party and they will burn Canada to the ground to prevent doing anything that might even slightly upset the frogs.

 

[gtgooh]

Less than 2% of American milk has those added hormones.

 

[Hirudinea]

Still too much.

 

[RightOfSask]

Because you have two choices.
The first one is to keep supply management. Canadian milk will cost you more.
The second one is to remove supply management and to remove the tariffs on American dairy. In this case the government (speak you with your taxes) will have to start to pay Canadian dairy farmers so that they can sell their milk below production cost, like the American dairy farmers.

Also the article is wrong. Grain farmers may not be under a supply management and you can import American grain, practically nobody does it. Because even the best American grain is just enough to feed your pigs according to the CGC.

 

[Hirudinea]

Well those American supplements and there different quality (hormone) milk should be on the table as well. Ending supply management isn't a bad thing, letting the Americans dump milk in our market is unacceptable, and we cannot allow that.

 

[gtgooh]

I take the third choice. No subsidies and no supply management. You know, like most items in the economy work?

 

[RightOfSask]

The US won't stop subsidizing their farmers.

 

[gtgooh]

@RightOfSask so? We benefit from their subsidy if we buy their stuff. If someone is willing to sell to us at a subsidized rate why would we say no?

 

[Hirudinea]

That would be ideal, but everyone has to do it.

 

[Hirudinea]

@RightOfSask

Then we won't but their milk, simple as. If Trump wants fair trade I think we should get it too.

 

[Hirudinea]

@gtgooh

Cause they're selling us shit and destroying our industry? Do you want to buy subsidized melamine milk from China? It's cheap!

 

[ChevChelios]

@Hirudinea: Hundreds of millions of Americans drink their domestically-produced milk without dropping dead or even ending up in the hospital. I don't think the comparison with a fully totalitarian backwater like China is reasonable at all

 

[border_humper]

I object to dumping milk down the drain. It strikes me as wasteful and immoral.

 

[Hirudinea]

@border_humper

I am 100% with you on that!

 

[Hirudinea]

@ChevChelios

Meh, it's the principle of the thing, we have our standards and should keep them.

 

[ChevChelios]

@Hirudinea: Why not let Canadian consumers decide? I doubt that rich Americans are voluntarily guzzling poisonous milk, so at least some of their brands must be pretty decent

 

[gtgooh]

@Hirudinea it’s not shit. That’s the propaganda peddled by the dairy cartels. You should be allowed to buy any dairy you want and not be forced to buy it solely from cartel millionaires.

 

[gtgooh]

@ChevChelios no kidding. Last time I had American beef, for instance, it was far superior to Canada’s beef.

Let the market decide.

All the cartel is doing is making Quebec dairy farmers even richer than they already are.

 

[Hirudinea]

@ChevChelios

Hey if their milk meets Canadian standards and it's not subsidized I have no problem, if not then I do.

 

[Hirudinea]

@gtgooh

I'm not defending the cartels, I'm just defending standards.

 

[Hirudinea]

@gtgooh

Hey I don't support the cartels, but I do think that there should be standards for food, don't you?

 

[Thinker]

Imagine if the USA controlled your food supply then another tariff war like this happens again we will be in even worse scenario then we are in now. The supply management exist to preserve our ability and knowledge base on to farm in these climates.

However, I would love to be able to buy unpasteurized milk from a local farmer without his entire operation being seized by the diary industry.

I think we should focus more on government mismanagement and turning off the taps of the swarm of indians we now face.

 

[Hirudinea]

Hey getting rid of supply management doesn't mean we give up our food security to the Americans. And I do agree you should be able to buy unpasteurized milk. If they sell cigarettes in stores with a warning label they could do the same with unpasteurized milk.

 

[Thinker]

It will happen just like any other developed industry Canada gave up on not including resource extractions.

 

[gtgooh]

Using this logic the borders of Canada should be sealed from the world. We can’t risk using microchips, car parts, cell phones, etc not made here, and so on?

I agree to not entrust all things to a country that we are at risk of being at war with but the US is not one of those countries.

 

[Thinker]

Ideally, yes. The idea entire countries specialize their economy around certain things is a recipe for disaster if an actual real crisis comes along.

One of the cornerstones of civilization which is food should absolutely be protected. We never had the best relationship with USA it has always either been antagonist or allies of convivence at best.

 

[Jack Layton]

Keep it, US food is GMO slop, the milk has rbST and they do all kinds of legal tricks to boost production.

 

[gtgooh]

Nope. Just 2% of their milk has that in it. They have a much wider array of dairy than we do. You bought into the cartel propaganda.

 

[Hirudinea]

OK, I pissed in a gallon of milk, but I guarantee it's just 2% piss, are you going to drink it?

 

[ovarieasy]

@Hirudinea
The maximum allowable amount of piss per gallon of milk is 3%, so that's fine.

 

[Hirudinea]

@ovarieasy

Unless it's Cheez-Whiz!

 

[gtgooh]

@Hirudinea it means your labeling of all US milk as “bad” isn’t even close to being true.

 

[Hirudinea]

@gtgooh

So you will drink the 2% piss milk?

 

[border_humper]

View: https://x.com/foodprofessor/status/1950189747353055235?s=61&t=gOuPM4AwCWPbUFeBYBm1rg

 

[ovarieasy]

My milk carton told me milk cartel is good.

 

[ChevChelios]

My milk carton has pictures of kids who complained about supply management