Canada’s supply management programs have long been a Conservative, or at least right-of-centre, target, smacking too much of a controlled economy. Such a program, which attempts to balance demand and supply, is complete anathema to free market champions and is regarded, especially south of the border, as a non-tariff trade barrier—and, in fairness, in some ways it is exactly that.
But there are many other considerations inherent in our national supply management systems that stand our health in good stead.
To anyone watching the international news these days, filtering through the fixation with the latest antics of The Donald, the plight of the omelet in the US is making waves. The price of eggs in America is right through the roof. Milk is not, but dairy producers in the US are foundering due to the power of the dairy processors in a flooded market.
The argument against supply management is that it inflates the cost of products, be they chickens, eggs, milk or butter. Yet the escalating price of butter and eggs in the unfettered US system is reaching national news status.
As one late night television host was wont to say… “makes you go hmnn.”
Currently, US milk producers are allowed to use hormones in order to increase the amount of milk that can be extracted from each cow. (The term is bovine growth hormone.)
Bovine somatotropin (bST) or recombinant bovine somatotropin (rBST) are protein hormones that are injected into cows to increase milk production. The Federal Drug Administration in the US has approved bST as a safe drug to increase milk production. The use of rBST is not permitted in the European Union, Canada and several other countries. Canadians 30 years ago were clear they did not want hormones added to their milk.
Regulations on the care and keeping of chickens, whether as food or in egg production, are more stringent here in Canada than in the US, one of the issues cited in that country’s current bird flu crisis. Millions of hens have had to be euthanized to control the spread. In December and January alone, 41.4 million birds were culled due to the virus and, since the outbreak began in 2022, more than 140 million birds have been infected or culled.
So far, Canada has been spared the worst of that crisis, but we cannot afford to let our guard down. As of February 13, there were 35 premises in Canada with avian influenza, affecting an estimated 14.5 million birds, this according to the Canadian Food Inspection Agency.
In Canada, “supply management” applies to five types of products: dairy, chicken, turkey, table eggs and broiler hatching eggs.
Canada’s supply management system has flaws, no doubt, but it has served its purpose quite well overall. Opening unfettered access to our agri-food markets to US producers, especially given the recent gutting of that nation’s food safety agencies, is an unwise path to follow.
Benefits for farmers include fair prices, in that farmers receive a minimum price that reflects production costs. It provides stability so farmers can invest in their businesses, which can lead to more productive farms and safer products, and farmers can earn a living and avoid “boom and bust” cycles so damaging especially to small family operations.
Benefits for consumers include stable prices, as supply management prevents shortages and gluts. As for the aforementioned food safety, supply management allows for the implementation of food safety programs.
Overall, there are benefits for the economy, including rural communities where supply management supports local businesses and initiatives; in agriculture where supply management provides a stabilizing force in Canada’s agriculture industry; in supporting food sovereignty as Canada avoids wide fluctuations in supply and prices.
