In order to justify the continued existence of supply management, producers’ associations state that they could not actually compete on the American market, and that without this system, they would even lose their shares of the domestic market. This Viewpoint aims to show that on the contrary, it is possible for Canadian farmers to be successful on the world market, without benefiting from such protectionist measures.

The renegotiation of NAFTA and Supply management.

The marketing model of maple products in Quebec.

The marketing model of maple products in Quebec.

Proposing $13 billion of compensation to farmers to end supply management.

Proposing $13 billion of compensation to farmers to end supply management.

Proposing $13 billion of compensation to farmers to end supply management.

Since the 1970s, farms in the dairy, poultry, and egg sectors have been subject to supply management, a system which combines production quotas, price controls, and import barriers to increase the prices of goods produced by these farms. The negative effects of this system for consumers have been studied in depth, and there is now a broad consensus regarding their existence and amplitude. The question of compensating farmers in order to abolish this regime remains an open one.

Supply management 101.

Two examples of measures that would be beneficial to consumers and producers on both sides of the border.