NIAGARA-ON-THE-LAKE, Ont. – Canada’s agriculture ministers last week ordered the most sweeping changes to supply management rules since the system was created a quarter century ago.
By Dec. 31, 1999, new federal-provincial agreements for dairy, poultry and egg agencies are to be in place. These will offer more operating flexibility, including making it easier to move production between provinces and to get into the export market.
The work of consulting with the agencies and preparing new agreements for approval will be led by officials from federal and provincial supervisory councils.
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In most cases the agreements under which the marketing agencies operate were written in the 1970s when they were created. Changes to the national plans often require as many as 33 signatures, including Ottawa, provincial governments, federal and provincial supervisory councils and farmer-operated provincial marketing boards.
“These agreements are badly outdated, very rigid and very cumbersome,” said Cynthia Currie, chair of the National Farm Products Council.
It is time for an update as supply management struggles to accommodate internal dissent over quota allocation between provinces, increased pressure from imports as tariffs fall and attempts to launch export programs.
“It is a very significant development,” said Currie in an interview. “It is a matter of looking at what happened in the past, what currently is happening and more importantly, looking at the future to see how we can develop new agreements that reflect today’s and tomorrow’s realities.”
In their decision, the ag ministers called for the rules to be “revised and restructured to allow the national agencies greater flexibility to adjust their marketing systems to changing market conditions.”
Last week and this, the struggle within supply management to “adjust to changing market conditions” was on display.
In Saskatoon last week, Chicken Farmers of Canada heard an appeal from Saskatchewan for permission to increase production by 50 percent next year to allow the province to take advantage of lower feed grain costs. The proposal was turned down, although it could be reconsidered later.
Meanwhile, the Canadian Egg Marketing Agency is meeting this week to try to resolve a controversy about export egg production in Manitoba.
Last March, CEMA agreed to allow 200,000 extra laying hens in Manitoba outside the quota system to supply Canadian Inovatech, a Winnipeg exporter, with product.
When one grower then announced he would build barns and supply the company on his own, other provinces became antsy about the possible fall-out and Quebec stopped paying levy funds to CEMA. This week the agency meets to try to resolve the conflict.
And in Ottawa early this week, Dairy Farmers of Canada officials were meeting to try to get the less-than-successful optional milk export program back on track.
For ministers meeting last week, it is all a reflection of change in the system. The agreement to rewrite the rules will be aimed at helping the change happen.
“Supply management is evolving,” said federal minister Lyle Vanclief.
“It is evolving between the legislation that is there and the international trade agreements to which we are signatories. That evolution is being driven by the industry itself. The ball is in their hands.”
