Commentary
Supply management. It’s the sacred cow of Canadian politics—the federal government’s price-fixing scheme that costs everyday Canadians hundreds of dollars each year, enrages the United States, and is paid reverence by all four of the major federal political parties.
But as an unpredictable trade war is waged between Canada and our more powerful neighbour to the south, it’s time to seriously think about scrapping the cartel that controls prices on dairy, eggs, and poultry.
First, a quick primer.
In Canada, dairy (and poultry and egg) farms are tightly regulated. They’re only allowed to produce as much product as the government says so, using a system of “quota.” If a farmer gets more milk than is allowed by his quota, the excess must be dumped. You can go on YouTube and watch videos of farmers dumping perfectly good milk down the drain because they’re not allowed to sell it. At the same time, farmers who don’t own quota are banned from even selling dairy. To top it off, the government sets the prices for milk, cheese, etc….