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27 January 2006January 27, 2006

Reforming dairy supply management in Canada: the Australian example

Economic Note on the supply management system in Canada’s dairy industry

Reforming dairy supply management in Canada: the Australian example

Even with a temporary reprieve from the latest WTO talks in Hong Kong in December 2005, the supply management system in Canada’s dairy industry will have to be reformed in the longer term. The system clearly benefits certain milk producers, but on the other hand it holds Canadian consumers hostage and stifles entire industries that have to pay more for their milk. It erects an obstacle to competition throughout the Canadian dairy industry, penalizing the most dynamic producers by means of extravagantly expensive quotas. When it comes to reforming the dairy supply management system in Canada, a number of concerns have been raised to which the Australian experience provides answers.

Links of interest

Media Release:
New increase in the price of milk - Canada should follow the example of Australia and reform its supply management system

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.

Even with a temporary reprieve from the latest WTO talks in Hong Kong in December 2005, the supply management system in Canada’s dairy industry will have to be reformed in the longer term. The system clearly benefits certain milk producers, but on the other hand it holds Canadian consumers hostage and stifles entire industries that have to pay more for their milk. It erects an obstacle to competition throughout the Canadian dairy industry, penalizing the most dynamic producers by means of extravagantly expensive quotas. When it comes to reforming the dairy supply management system in Canada, a number of concerns have been raised to which the Australian experience provides answers.


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