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.

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