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23 August 2007August 23, 2007

Supply management of farm products: A costly system for consumers

Economic Note on an obsolete, costly and unfair system: supply management

Supply management of farm products: A costly system for consumers

Despite a worldwide trend toward market liberalization and competition, most politicians and people involved in Quebec agriculture maintain a vigorous defence of supply management of certain farm products. Supply management is the mechanism by which milk, poultry and egg producers in Canada (most of them located in Quebec and Ontario) adjust production to protect their incomes. To this end, domestic demand is evaluated arbitrarily, and efforts are made to match this with production of the goods covered by the scheme.

Links of interest

Media release:
$300 per family – Supply management of farm products: a costly system for consumers

Despite a worldwide trend toward market liberalization and competition, most politicians and people involved in Quebec agriculture maintain a vigorous defence of supply management of certain farm products. Supply management is the mechanism by which milk, poultry and egg producers in Canada (most of them located in Quebec and Ontario) adjust production to protect their incomes. To this end, domestic demand is evaluated arbitrarily, and efforts are made to match this with production of the goods covered by the scheme.


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