SUPPLY MANAGEMENT

Marketing Boards

“Former agriculture minister Eugene Whelan is hit on the head with a milk jug during a demonstration by dairy farmers in this 1976 photo.” CBC
From: “5 reasons to defend farm marketing boards:Why does the Harper government continue to back supply management for Canada's dairy, egg, and poultry sectors?
Janyce McGregor · CBC News · Posted: Jan 05, 2012

     The stirring subject of Supply Management is again in the news, mainly because President Trump is very much interested in it. I am sure you have been following the arguments, but, if not, here are two sources to get you started:

“Donald Trump Doesn’t Really Want to Kill Supply Management. Neither do American Farmers.
U.S. Farmers Have Too Much to Lose if Free Trade in Milk and Cheese Becomes a Reality, Say Experts,” John Geddes,  Maclean’s, June 13, 2018.

How Canada's Supply Management System Works: It's Been Blamed for Inflating Food Prices - But a Lot of American Producers Wish They Had Something Like It, John Paul Tasker · CBC News · Posted: June 16, 2018.
“Canada's system of supply management has been the target of heated political debate for the better part of half a century — but very few Canadians outside of the affected farm sectors actually understand how it works, or who foots the bill for stabilizing farmers' incomes.
Supply management is a system that allows specific commodity sectors — dairy, poultry and eggs — to limit the supply of their products to what Canadians are expected to consume in order to ensure predictable, stable prices.”

A Timely Topic (c2008)

     Supply Management was of interest about a decade ago, and for that reason a primer and bibliography was prepared for the students/faculty at the University of Western Ontario. It was included among a series of "Timely Topics" which were produced to inform the public, promote library resources and illustrate that the library staff were hard at work. 

     This resource (and many others) are no longer available on the website of the Western Libraries, but I remembered doing it and was able to retrieve a copy. After looking at it, I think it is still very useful. Apparently, those at the Western Libraries do not agree and they should not be held accountable.

Supply Management in Agriculture (Marketing Boards)

Researchers should remember that this guide has not been updated since c2011. In cutting and pasting, many of the bibliographic sources appear in a style that would not past muster with the MLA, but otherwise should be correct with respect to source and date. 

The purpose of this brief guide is to direct you to resources relating to a subject that is interesting both politically and philosophically and which has domestic and international components. For many years the supply and production of some Canadian agricultural products have been managed and controlled. Although the rationale for supply management - steady production and stable incomes for farmers - may be a reasonable one, there are many who argue that the system is outdated and that the rigid quotas and controls result in unreasonably high prices for commodities such as milk, cheese and poultry and that they restrict choices for Canadian consumers. People in this camp typically argue that the market can do a better job than government managers.

Update 2011:

Headline in London Free Press Dec. 13, 2011
"Milk Fight"
AGRICULTURE: Canada's restaurant industry is leading a push to get rid of marketing boards, starting with the milk agency. But the boards and the farmers who get a guaranteed price from the boards say the siren call of lower prices may cause greater harm in the end.
......Whyte's organization and other critics, such as the Fraser Institute, are sharpening their attacks on the system that controls the marketing of milk, cheese, eggs and poultry in Canada. The thrust of their argument is the supply-managed farm boards are artificially boosting the price of dairy products, hurting the restaurant industry and unfairly hitting consumers.
.......
SUPPLY MANAGEMENT PROS AND CONS
Supporters of supply management say the system:
provides consumers with a consistent supply of high-quality products at steady prices
gives farmers a predictable income with prices linked to production costs

Opponents of supply management say the system:
inflates the prices for processors and consumers
keeps young farmers from entering system
protects farmers from competition, stifling innovation
____________________________________________________________________________________
The web site freeyourmilk.ca  states:
As the voice of Canada’s restaurant industry, we’re concerned that the price of basic dairy products is being kept artificially high by government dairy policy. As a result, Canadians are paying as much as double the international market price for dairy products.
[the link above no longer works; the ones below are not provided to reduce 'link rot'. It is likely that these sources will be found by searching the titles provided].
Charging higher prices than necessary for a basic healthy food like milk isn’t fair.
It’s time for the government to re-examine how milk is priced. It’s time for a system that’s fair for everyone – and easier on Canadians’ pocketbooks.
It also provides links to support their stand:
Statistics of the Canadian Dairy Industry – Agriculture and Agri-food Canada (PDF)
The Poor Still Pay More – Institute for Competitiveness and Prosperity
Bulletin of the International Dairy Federation (for a fee)
Making Milk – Conference Board of Canada
Great Wine, Better Cheese – C.D. Howe Institute (PDF)
The Perfect Food in a Perfect Mess: The Cost of Milk in Canada – Fraser Institute (PDF)
Dairy Production: The Cost of Supply Management in Canada – Montreal Economic Institute (PDF)
_________________________________________________________________________________________________
See also : Trouble at the Boards: Canada's Wheat Board No Longer
Update 2010:
Update:  November, 2010
This contentious subject is again in the news as Canadian officials discuss international free trade. See:
“Dairy Protection Pushing up Prices”
By Sharon Singleton, QMI Agency
London free Press
Last Updated: November 9, 2010 3:33pm
“Have you ever wondered why the cost of dairy products is so high in Canada, when south of the border you pay about 40% less for a litre of milk?
It’s a topic that’s likely to be aired as trade officials from Ottawa seek to thrash out free-trade agreements from the European Union to India. High tariffs on the import of dairy products and effective subsidies to dairy farmers may be harming Canada’s ability to negotiate at the global table, think-tanks and consumer associations say.“It is a barrier to trade,” said Danielle Goldfarb, associate director at the Conference Board of Canada who has written a study on the issue. “There are other sectors which want access to global markets who feel their opportunities are in jeopardy because we are not able to offer reciprocal access on dairy and poultry.”

Update 2009: We note below that the Canadian Restaurant and Foodservices Association is generally opposed to supply management in the diary sector. In the Globe and Mail on Monday November 30, 2009 they sponsored a large advertisement which shouted that“Three Men Will Decide How Much You Pay for Milk Next Year”(p.13). They are referring to the crown corporation –the Canadian Diary Commission.
(Note to researchers:  The ad can still be found here:
http://www.crfa.ca/aboutcrfa/newsroom/2009/canadian_dairy_commission_causes_price_revolt_by_major_dairy_buyer.asp
See our guide to some accounting legislation where we attempted to capture the related political advertisements – Bill 213.)

In the same issue of The Globe (p.14) there is a related editorial – “MPs as Trade Barriers” which focuses on the international implications of supply management. The editorial begins as follows:
“The House of Commons committee on international trade has done no service to Canada by its unanimous report this month that does little more than insist on the preservation as-is of supply management in the Canadian dairy, egg and poultry industries, by regulatory schemes that include both tariff and quota barriers to foreign importers. If the Doha Round negotiations of the World Trade Organization result in an agreement that would require the alteration of Canadian supply management, it would be highly imprudent for Canada to sacrifice its membership in the international trading system overseen by the WTO, after many years of good global citizenship in the WTO and its postwar predecessor, the General Agreement on Tariffs and Trade – and to forgo many new opportunities for Canadians in more open markets around the world.”
The editorial also refers to a new Canadian Conference Board report by Danielle Goldfarb. That report is called “Making Milk: The Practices, Players and Pressures Behind Diary Supply Management”. Access to the full text of that report is available to members of the Western academic community.  Here is the related press release from the Conference Board:
News Releases 10-44
Spilled Milk: Canada’s Dairy Policy Leads to Lost Opportunities
Ottawa, November 23 — Canada’s existing dairy supply management system results in lost opportunities for all Canadians—including milk producers themselves— according to a Conference Board report that examines how the system works in practice and whether it is in the national long-term interest.

“Supply management largely meets its stated goal of improving producer incomes. But it also prevents milk producers from capitalizing on opportunities in global markets, while thwarting Canada’s international trade objectives, and reducing competitiveness and innovation,” said Glen Hodgson, Senior Vice-President and Chief Economist.

Most Canadians are unaware of the elaborate behind-the-scenes machinations involved in the dairy supply management system. Since the 1970s, agencies under government authority have set the prices that farmers receive for their milk, and limited production through quotas to match anticipated Canadian demand for milk, cheese, butter, and other dairy products at those prices. To maintain high farmer milk prices and not undercut Canadian production, most dairy imports are restricted by tariffs of between 200 per cent and 300 per cent.
News reports late in 2009 indicate that the CDC has not altered its position with regard to dairy prices.
For a related guide prepared by Ivey staff see:  “Internal Trade in Canada”(http://www.lib.uwo.ca/programs/generalbusiness/internaltrade.html


The debate is often vigorous with those in favour of free markets on one side and those in the dairy and poultry industry on the other. We present a list of books and articles below so you can sort out the issues for yourself.

For web resources we suggest the following, along with the reminder that they are typically not produced by those who are disinterested. For government sites see: The Canadian Diary Information Centre; The Canadian Agricultural Income Stabilization Program (CAIS) and the Poultry Marketplace.
For the industry side see provincial sites such as: the Dairy Farmers of Ontario, Alberta Milk and Manitoba Milk Producers.
Update: After this guide was completed in the Spring of 2008, we saw this notice:
"EGG MARKETING AGENCY CHOOSES MORE FARM RELATED NAME: On August 25, 2008 the
Canadian Egg Marketing Agency, the national organization representing supply-managed egg farmers,
changed its name to Egg Farmers of Canada. Laurent Souligny, an egg farmer and chairman of the
national egg farmers' organization, said that there were some misconceptions that the organization was
a government institution and that producers wanted consumers to know that the organization was
farmer-led and farmer-driven. The new website is: http://www.eggs.ca. "
The various think tanks in Canada typically have positions on this issue. See: from the C.D. Howe Institute - Great Wine, Better Cheese... an electronic copy of which is provided below; see the Politics of Milk in Canada from the Fraser Institute ("a free and prosperous world, through choice, markets and responsibility" is their motto, so you know where they stand); Dairy Production: The Costs of Supply Management in Canada from the Montreal Economic Institute; Agriculture Must Compete in Today's World, Not Yesterday's, from the Atlantic Institute for Market Studies and various publications from the George Morris Centre, some of which are provided below.
For interesting arguments from an industry very much opposed to supply management see Dairy Planet: Milk, Cheese and the Canadian Whey, produced by the Canadian Restaurant and Foodservices Association (CRFA);

Selected Books N.B. Not updated since c2010.
Adams, Jane. Fighting for the Farm: Rural America Transformed. Philadelphia: University of Pennsylvania Press, 2003.
Brethour, Cher, George Morris Centre, and Canadian Animal Health Institute. The Competitiveness Impacts of Canada's Agricultural Product Review Regulations. Guelph, Ont.: George Morris Centre, 2004.
Canada.Parliament.Senate.Standing Committee on Agriculture and Forestry. Agriculture and Agri-Food Policy in Canada. Ottawa, Ont.: Standing Committee on Agriculture and Forestry, 2006.
Canada. Next Generation of Agriculture and Agri-Food Policy. Ottawa: Agriculture and Agri-Food Canada, 2006.
Federal Provincial Territorial Working Group on Economic Analysis. Long Term Challenges and Opportunities. Ottawa, Ont.: Dept. of Agriculture, 2006.
Gooch, Martin, and George Morris Centre. Drivers, Benefits and Critical Success Factors of Developing Closely-Aligned Agri-Food Value Chains. Guelph, Ont.: George Morris Centre, 2005.
Hart, Michael, and C.D. Howe Institute. Great Wine, Better Cheese :How Canada can Escape the Trap of Agricultural Supply Management. Vol. 90. Toronto: C. D. Howe Institute, 2005.
Holden, Michael, and Canada. Canada's Domestic Agricultural Supports and the World Trade Organization. Ottawa: Ont.: Parliamentary Information and Research Service, Library of Parliament, 2005.
Martin, Larry, Kate Stiefelmeyer, and George Morris Centre. Canadian Agri-Product Policy Project. Guelph, Ont.: George Morris Centre, 2006.
Mussell, Al, and George Morris Centre. Safety Net Program in Canada. Guelph, Ont.: George Morris Centre, 2007.
Roppel, Carla, et al. Farm Women and Canadian Agricultural Policy. Ottawa: Status of Women Canada, 2006.
Sales & Marketing Management. New York etc.: S.N., 1975.
Stiefelmeyer, Kate, and George Morris Centre. Future Direction for Agriculture and Agri-Products. Guelph, Ont.: George Morris Centre, 2007.

Supply Management in Agriculture: Selected Articles - Not Updated.
"Ag ministers defend supply management. " Western Producer 5 Jul 2007: 3. CBCA Business. ProQuest.
Armstrong, Bob. "Granny's Poultry Co-operative. " Manitoba Business 1 May 2007: 17-18,9. ABI/INFORM Dateline. ProQuest.
Burnett, Thane. "Udderly Surprising; Across Much of the Developing World, Milk is being Compared to Precious Oil." The Ottawa SunDecember 8, 2007, sec. News: 8. LexisNexis
"Caution Urged when Planning Ahead; the Changing Face of the Dairy Industry Will have a Large Bearing on Future Profitability, Speaker Warns." Ontario Farmer (Canada) February 26, 2008, sec. B: B22. LexisNexis
Chase, Steven. "Step Lightly in the Barnyard; Emerson Learns Free-Market Talk Shouldn't Cover Dairy, Poultry Sales." The Globe and Mail March 7, 2007, sec. B: 7. LexisNexis
Cumming, Ian. "Canada to Safeguard Sensitive Goods; Ag Minister Gerry Ritz has Announced a Plan to Protect Supply-Managed Goods from a WTO Deal." Ontario Farmer (Canada) February 12, 2008, sec. A: 16.
"DFC Chair Strives for a Single Pool; while the Basics of Supply Management must Stay Intact, Changes are Needed within the Industry." Ontario Farmer (Canada) February 19, 2008, sec. A: 36. LexisNexis February 27, 2008.
Di Matteo, Livio. "Governed Sick: Physician Supply Management has Come Close to Catastrophe. Centralized Budgetary Control is no Cure." National Post 17 October 2006 2006, sec. FP: 15. Factiva February 27, 2008.
Doll, Cyril. "Hard-boiled Egg Policy: Ontario's egg marketing board tries to crack the little guy :[Final Edition]. " Western Standard 26 Mar. 2007: 23. CBCA Current Events. ProQuest.
Easter, Wayne. "Conservatives' first federal budget fails to address urgent needs of farm community, says Liberal agriculture critic. " The Hill Times 8 May 2006: 28. CBCA Reference. ProQuest.
Edie, Barbara. "Farming Still A Major Force. " Manitoba Business 1 Mar. 2006: 8-11. ABI/INFORM Dateline. ProQuest.
Epp, Peter. "Dairy Challenges must be Met by United Front, Gay Lea Boss Says." Farm Market March 17, 2007: 16. LexisNexis February 27, 2008.
Fairbairn, Joyce. "Future of family farm as we know it in Canada is at risk. " The Hill Times 8 May 2006: 30. CBCA Reference. ProQuest. Western Libraries, London, ON. 27 Feb. 2008
Farm Market. "Liberals Unveil their Federal Farm Policy; would Eliminate CAIS Averaging." Farm Market September 30, 2006, sec. News: 18. LexisNexis February 27, 2008.
"Fear Trumps Reason in the Politics of Agriculture." The Globe and Mail July 26, 2006, sec. A: 17.
"Government Supports Supply Management. Period." Ontario Farmer (Canada) February 26, 2008, sec. A: 9.
Hein, Treena. "Real Cream in the Freezer. " Food in Canada 1 Sep. 2006: 10. ABI/INFORM Trade & Industry. ProQuest.
Ivison, John. "Bread and Butter Issues a Delicate Dance: Don't Expect Tory Plan to End Wheat Board Monopoly to Extend to Dairy Price Support." National Post 19 October 2006 sec. A: 6. Factiva February 27, 2008.
Kikkert, John. "How the Province can Help Ontario Farmers." Farm Market June 23, 2007, sec. News: 7. LexisNexis February 27, 2008.
Larue, Bruno, Jean-Philippe Gervais, Sébastien Pouliot. "Should tariff-rate quotas mimic quotas? Implications for trade liberalization under a supply management policy. " North American Journal of Economics and Finance 18.3 (2007): 247. ABI/INFORM Global. ProQuest.
"Make Dairy Farmers an Offer they can't Refuse." The Globe and Mail June 15, 2007, sec. B: 2. LexisNexis February 27, 2008.
Mandel-Campbell, Andrea. "The Milk of Human Avarice." MacLean's January 16, 2006 : 32. LexisNexis. Febraury 27, 2008.
Mintz, Jack. "Field Dreams." Canadian Business May 21, 2007: 15.
O'Connor, Donal. "Farmers Urged to Keep Positive Attitude." Farm Market November 24, 2007, sec. News: 2.
Paraskevas, Joe. "Stance on Wheat may Hurt PM,Dion Says." Winnipeg Free Press 18 December 2006 2008, sec. A: 3.
Petkantchin, Valentin. "How Australia got out of supply management: A lesson for Canada: Milk prices fell from 18% to 29%. " National Post (Index-only) [Don Mills, Ont.] 8 Feb. 2006, FP23. CBCA Current Events. ProQuest.
Rance, Laura. "Is Supply Control a Big Success Or Rip-Off?" Winnipeg Free Press 16 December 2006 sec. B: 11.
Reaman, Ron. "Milking Canada: Dairy Farmers should Give Up the High Prices Mandated by Ottawa and Enter the World's Vast Export Market." National Post 07 December 2006, sec. FP: 19. Factiva February 27, 2008.
Reesor, Richard. "Killing African farmers softly with good intentions. " Canadian Mennonite 26 Jun 2006: 10. CBCA Reference. ProQuest.
Reynolds, Neil. "Free Trade would Feed a Farming Revival." The Globe and Mail 04 August 2006 2006, sec. B: 2. Factiva February 27, 2008.
Rude, James, Karl Meilke. "Canadian Agriculture and the Doha Development Agenda: The Challenges. " The Estey Centre Journal of International Law and Trade Policy 7.1 (2006): 32-48. ABI/INFORM Global. ProQuest.
Russell, Francis. "Harper could Pay Price for Wheat Board Abuse." Winnipeg Free Press 2006, sec. a: 15.
"Sacred Cows: Guess Who's Getting Milked." The Globe and Mail 01 February 2008 2008, sec. B: 2. Factiva February 27, 2008.
Simpson, Jeffrey. "Canada's Trade Policy is Pretty Well a Big Fat Zero." The Globe and Mail February 20, 2007, sec. A: 19. LeixsNexis February 27, 2008.
"Stop Milking Outdated Agricultural Quotas." The Globe and Mail 30 June 2006 2006, sec. B: 2. Factiva February 27, 2008.
"The WTO and Agriculture - Québec and Ontario Urge the Federal Government to Stand Up for Agricultural Interests at the WTO." Canada NewsWire February 11, 2008 2008 LexisNexis February 27, 2008.
"Uncertain Future for Nation's Dairy Farmers." Winnipeg Free Press 17 June 2006 2006, sec. B: 10. Factiva February 27, 2008.
"U.S. Dairy Suing Ottawa Over Milk Exports." The Globe and Mail 28 February 2006 2006, sec. B: 3.
Vieira, Paul. "Canada to WTO: Hands Off our Supply-Management Boards." Financial Post 06 April 2006 2006, sec. FP: 6. Factiva February 27, 2008.
Wilson, Barry. "Dump supply management, urge conservative leaders. " Western Producer 17 May 2007: 3. CBCA Business. ProQuest. Western Libraries, London, ON. 27 Feb. 2008.
Wilson, Barry. "Que. report takes shot at supply management. " Western Producer 30 Aug. 2007: 62. CBCA Business. ProQuest. Western Libraries, London, ON. 27 Feb. 2008
Wilson, Barry. "Supply management days numbered: minister. " Western Producer 21 Dec. 2006: 4. CBCA Business. ProQuest. Western Libraries, London, ON. 27 Feb. 2008
Wilson, Barry. "Supply management sector won't budge. " Western Producer 5 Apr. 2007: 39. CBCA Business. ProQuest. Western Libraries, London, ON. 27 Feb. 2008
Wilson, Barry. "Supply management thwarts free trade: economist. " Western Producer 8 Feb. 2007: 26. CBCA Business. ProQuest. Western Libraries, London, ON. 27 Feb. 2008
Wilson, Barry. "Supply management wants active defence. " Western Producer 28 Jun 2007: 57. CBCA Business. ProQuest. Western Libraries, London, ON. 27 Feb. 2008
Selected Older Articles
Cayo, Don. "This Farm System Doesn't Serve the Consumer." The Vancouver Sun Nov 18 2005: D.3.
"Governments Cook Up New Chicken Supply Management Accord." Canadian Press NewsWire (2001): n/a.
"Great Wine, Better Cheese - Why Canada should Scrap the Agricultural Supply Management System: C.D. Howe Institute Report." Canada NewsWire (2005): 1.
Hall, Angela. "Farming Front and Centre." Leader Post Nov 14 2005: B.5.Fro.
Hart, Michael. "The Great National Self-Deception: Why we should Wean Dairy Farmers Off Supply Management." The Vancouver SunApr 15 2005: A.19.
Hart, Michael. "Great Wine, Better Cheese: How Canada can Escape the Trap of Agricultural Supply Management." Backgrounder - C.D.Howe Institute.90 (2005): 1.
"House of Commons Unanimously Adopts Motion on Supply Management." Canada NewsWire (2005): 1.
Laidlaw, Stuart. "Hong Kong Trade Talks Key; Negotiations on Agriculture Deal may be Doomed Supply System Crucial to Canada, Minister Says." Toronto Star Dec 7 2005: E.09.
Lewis, Brian. "It's Time to Get Big Brother Out of the Dairy Industry." The Province Dec 4 2005: A.42.
"Media Advisory - Dairy Farmers of Canada in Saguenay to Defend Supply Management." Canada NewsWire (2002): 1.
"Media Advisory - Got Milked? Pizza Pizza Spokesperson Available for Comment on Dairy-Pricing Issue." Canada NewsWire (2005): 1.
"MEDIA ADVISORY - Imports, Exports and Supply Management the Focus of Dairy Farmers of Canada's Annual Policy Conference." Canada NewsWire (2003): 1.
Morton, Peter, and Washington B. Chief. "Breakthrough in Farm Trade Talks: India, Brazil Back Down." National Post Dec 5 2005: FP.4.
"N.S. Farmers Fear being Sold Out at WTO Talks:" Calgary Herald Nov 19 2005: C.8.
"Open Markets could Hurt Province's Farmers." Telegram Dec 3 2005: A.10.
"Pizzerias Deliver Got Milked Message to 1.5 Million Customers." Canada NewsWire (2005): 1.
Ryder, and Ron. "Canada must Protect Farm-Marketing Boards in Trade Talks, Says MacAdam." Guardian Nov 19 2005: A.3.
Thompson, Elizabeth. "Farm Supply Management must be Kept, Duceppe Warns Tories." The Ottawa Citizen Jun 17 2004: B.2.
Tutton, and Michael. "Nova Scotian Farmers in Supply-Managed Sectors Like Dairy and Poultry Say they'Re Worried that Ottawa may Abandon them in Global Trade Talks." Canadian Press NewsWire (2005): n/a.
Tutunjian, Jerry. "Feds 100% Behind Supply Management." Canadian Grocer 118.3 (2004): 15.
Tutunjian, Jerry. "Supply Management Threatened by WTO." Canadian Grocer 117.7 (2003): 25.
Vieira, Paul. "Agricultural Boards Untouchable: Minister: Provinces Agree." National Post Nov 23 2005: FP.5.
"World Trade Organization (WTO) - Quebec Agri-Food Industry Mobilizes - Preserving a Fair Agricultural Model: Supply Management." Canada NewsWire (2003): 1.