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1 February 2005February 1, 2005

Dairy production: the costs of supply management in Canada

Economic Note on the “supply management” model in agriculture

Dairy production: the costs of supply management in Canada

International talks at the World Trade Organization (WTO) in July 2004 drew attention to the “supply management” model in agriculture. This model was first applied in Australia in the 1920s to protect farmers’ incomes against economic swings and lower prices for their products as well as to increase their power in relation to buyers. Supply management, which is held out today as an indispensable element of Canadian agricultural policy, is in reality a needlessly costly system, particularly where dairy production is concerned.

Links of interest

Valentin Petkantchin, MEI's Director of Research, answers to critics made by the Fédération des producteurs de lait du Québec (FPLQ)

Media Release: Rising milk prices: the Montreal Economic Institute takes aim at supply management

*The Montreal Economic Institute would like to thank Mr. Sylvain Charlebois, Assistant professor in marketing, Faculty of administration, University of Regina, for his contribution to this Economic Note.

International talks at the World Trade Organization (WTO) in July 2004 drew attention to the “supply management” model in agriculture. This model was first applied in Australia in the 1920s to protect farmers’ incomes against economic swings and lower prices for their products as well as to increase their power in relation to buyers. Supply management, which is held out today as an indispensable element of Canadian agricultural policy, is in reality a needlessly costly system, particularly where dairy production is concerned.


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