After months of escalating criticism of the supply management system by academics, free trade economists and media, Dairy Farmers of Canada has decided to fight back.
The calls for the end of supply management or at least the erosion of its tariff protection regime have been piling on from business lobbyists, trade experts, export advocates and media commentators who see supply management protectionism as a contradiction of Canada’s trade liberalization stance and a food price burden on consumers.
During its annual policy convention Feb. 1, the dairy farmer lobby announced creation of a website aimed at “getting the facts straight.” The site at www.yourmilk.ca will offer the industry answer to criticisms that supply management stops Canada from signing trade deals, includes subsidies and is unique in managing dairy imports.
In all cases, those allegations are wrong, said DFC.
“I think it’s important for us to continue to tell our story,” DFC president Wally Smith said in a Feb. 2 interview. “In the absence of us telling our story, others will, and either intentionally or because they don’t have all the information, the true story isn’t always one that is communicated.”
The supply management system continues to enjoy strong support across the political spectrum, evidenced this week by continued promises of support from all parties during DFC Parliament Hill lobbying.
And chief federal agriculture trade negotiator Gilles Gauthier assured DFC delegates that supply management protections continue to be defended in trade negotiations.
As is often the case, what Barry has omitted from his article is more important than what he has said.
Canada has supply management. US has support prices which kick in when market price falls below production costs. Canadian consumers pay dairy farmers at the grocery store checkout. US consumers pay dairy farmers with money they borrow from China.
I suggest in the strongest possible terms that the DFC explain to consumers how they have raised the price of dairy products to the point that offshore product comes in at 300% tarriff and is competitive with domestic product.
Then explain how the obscence domestic prices are capitalized into the quota value, leaving little margin to live on, so the only producers that benifit are the ones that sellout or retire, making the whole system a consumer paid, multi million dollar retirement program for dairy farmers.