e-Library Advanced Search

Canada’s Supply-Managed Dairy Policy: How Do We Compare?

The Conference Board of Canada, 15 pages, October 2012
Briefing by R. Allan Mussell, Bob Seguin, Janalee Sweetland
(You must be signed in and entitled to rate this report)
Canada, the United States, the Netherlands, Australia, and New Zealand developed a variety of dairy policies in the mid-20th century to respond to surplus milk and low dairy prices. All but Canada liberalized their policies in the 1980s.

Document Highlights

In Canada, a long-standing, complex supply management system sets milk prices at the farm level and limits milk supply and dairy imports. Other countries also developed interventionist policies in the mid-20th century to respond to surplus milk and low dairy prices, but most shifted to more liberalized policies in the 1980s. This briefing compares the developments in interventionist dairy policies and the fluctuations in dairy production in Canada with that in the United States, the Netherlands, Australia, and New Zealand. Those four countries (and others) are now involved in trade talks with Canada. This comparison of peer country dairy sectors provides background on where different countries are coming from in trade negotiations and presents a variety of models to consider as Canada contemplates reform of its own system.

Reviews

Mike Iwaskow -  April 29, 2013
Great
 
Francis Gagné -  March 7, 2013
 
Marco Fok -  February 4, 2013
 
Mark Hutton -  January 26, 2013
Excellent article; well balanced and very informed.
 
Robert Jelly -  November 29, 2012
 
Marianne Gianacopoulos -  November 22, 2012
Similar to the Wheat Board, Canada's Dairy supply management needs an overhaul. Given our major cities and their proximity to the US border, how much related dairy product dollars are spent in the US versus in Canada because US dairy prices are approximately half of Canadian prices for the same products!
 
Ramesh Chaitoo -  November 3, 2012
Very interesting comparison of policies regarding the dairy sector in some major producer countries. The historical changes are striking and the data are quite useful. One wonders if the dairy industry can ever operate on pure market principles.
 
Danyu Bai -  October 31, 2012
informative. Would be interesting to see how the supply management affect Canada's negotiation at the TPP.
 
Sasha Tregebov -  October 30, 2012
 
David Bond -  October 23, 2012
A solid piece of statistical work putting together a contextual base for looking at policy options that I hope will be forthcoming. What kept going through my mind is the question why is the dairy industry treated differently? I am certain that there is nothing equivalent for cobblers, or dry cleaners , or restaurants for example. Is it because it is a part of agriculture or what?

I also appreciated the calm and rational reporting free of judgmental commentary that made the findings all the more creditable.

Thank you
 
Jane Humphreys -  October 23, 2012
Very useful and timely in light of TPP negotiations.
 
Murray Roney -  October 22, 2012
I found this to be a very useful document that explained to me some of the producer support mechanisms used in some nations of the developed world.  This is of special interest given the pressures from nations to have Canada liberalize dairy product markets in Canada in exchange for broader access rights to their markets.  Personally, I would be interested in understanding the inflation-adjusted prices for major dairy products in each of the countries analyzed and see the constant prices denominated in terms of the Canadian dollar.  In addition, I would like to understand the producer profitability in each of these countries over time and the impact of changing market regulation or support over time.
 
Scott Ross -  October 22, 2012
Interesting comparison of international policy trajectories and associated prices/industy make-ups.

It would have been better if each of tables clearly identified when policy shifts occurred to more readily understand resulting changes to industry.

Looking forward to further documents in the series.
 
Pascale Massot -  October 22, 2012
Research on this topic is welcome. However, more comparative charts (to allow the reader to picture clearly where Canada stands in terms of price, compared to all other countries, for instance) and clearer policy prescriptions would have been useful.
 
Carl Grenier -  October 22, 2012
I have been involved on and off in policy-making and trade negotiations having to do with agricultural policies and practices since 1976, both at the federal and provincial level. This is a very good comparison of the dairy policies of five countries(including Canada) certainly one of the best 'synthetic analysis' that I have seen on the subject in the last few years. I do commend the Conference Board for having commissioned the study in a timely fashion, no doubt related to the two major trade negotiations (CETA, TPP) where the issue is being addressed. One caveat: the text could do with more careful editing ; for instance on p. 4, regarding U.S. dairy policy, it is stated that “Dairy policy in the U.S. has its basis in the Agricultural
Marketing Agreement Act of 1937. That act established
federal milk marketing orders and price supports, which
were originally authorized under the Agricultural Act of
1949. » a rather glaring error, which should have been caught.
All the best,
Carl Grenier
 
Peter Milne -  October 22, 2012
Canada can sell milk to California under NAFTA. Canada’s dairy processors are multi-nationals who would like to tell the Canadian consumer they would get less expensive milk from the USA. California has the greatest herd of dairy cattle and very expensive milk. Due to Special Interest Groups giving money to the political elites, the taxpayers and consumers living in California pay a high price for their milk, due to interstate trade barriers for milk. No milk is allowed into California from any other state in the USA.
Since Quebec is a free-trade agreement with France, Quebec could export milk to California, if the Canadian dairy farmer is shut down. This would be an economic blow to Canada and to the elected Government. It is not just the farmer that is out of work, but all of the suppliers to the dairy farmer. Quebec has the greatest number of dairy farms and would suffer the greatest economic loss.  
The Government milk money give away in Washington goes to the very large farms not to the small scale farmer; this is true with all of the US Farm Programs. If the true costs of milk were actually known Canada would have less costly milk than the USA.
 
Greg Somers -  October 22, 2012
Good report, and excellent judgment to compare 5 different markets. But I would also value comparison of dairy industry returns and viability of heterogenous production scales in those markets.
 
Terence Adams -  October 22, 2012
 
David McLeod -  October 22, 2012
I found the article interesting.

The charts would have been more useful for comparison purposes if the individual country charts had been overlaid.

I will continue to follow this series with interest.
 
Jeff Timmons -  October 18, 2012
While I normally do not read articles about the food service industry in general, I found this report to be intriguing and educational. It has definitely peaked an interest and I look forward to following the briefing series.
 

Access document
(you will be asked to sign-in)
Price: $0
You can get this research for free. Take a minute and create an e-Library account.
Learn more about the e-Library by watching our interactive video:

Canada’s Supply-Managed Dairy Policy: How Do We Compare?Rating:4.000000 out of5based on20 reviews.