The success of the dairy industry is proof the supply management system works in farmers’ favor.
“It has been knocked for many years as a closed system, but (what) we see now is what the system really does,” said Robert Krueger, chair of the Alberta Milk Producers Association.
“Stability allows producers to gain a return and that stable price also reflects back to the consumer that they are not being overcharged,” he said.
Further profits are realized as dairy farms expand in size. In Alberta, the average dairy was about 40 cows but is now around 70. While there is room for expansion, industry production remains controlled by domestic needs rather than a growing export market.
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A single and aligned check-off collection system based on where producers live makes the system equal said Chad Ross, Saskatchewan Cattle Association chair.
There is a limited export market where returns are not as great as might be expected.
“Export markets are basically surplus removal for most countries.
“You don’t have higher price on the export side as you would on the domestic side,” he said.
If more people entered the industry, profits would dro-10-P. Many dairy producers dread a more open system such as in the United States where consumer milk prices are high but producers are barely breaking even.
