EDMONTON – Alberta Milk officials don’t believe their industry is under threat from the federal or provincial governments.
Instead, they think the real threat comes from the restaurant industry.
Alberta Milk chair Hennie Bos told the organization’s annual meeting that the supply managed industry has the full support of government.
“At the federal level, we are pleased with the Conservative government’s unwavering support for supply management,” said Bos.
“Where we are getting pressure is from economists and certain media and restaurant associations. Predominately, it’s the restaurants. They just want to have it cheaper.”
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Bos said he doubts the 20 cents that farmers receive from a glass of milk in a restaurant would change the price.
“If that 20 cents is removed, do they really think the glass of milk will be cheaper?”
He said it’s not fair to blame dairy producers and the supply managed system for the cost of dairy products. Processors, distributors and retailers all tack on a few cents to the price.
Bos said supply management works for the dairy industry, but lately it has been caught up in the debate around the Canadian Wheat Board as economists demand a free market for milk as well as wheat.
“Apparently those economists and media are trying to make that link.”
During the meeting, Alberta dairy producer Bill Van Rootsellar asked Alberta agriculture minister Evan Berger to tell the audience how much the provincial government supports supply management.
“How far are you and your caucus willing to go to support it?”
Berger said he believes in leaving the supply management system the way it is.
“I am a proponent of, ‘if it’s not broke, don’t fix it.’ You are looking after your own industry. Why would we look at changing anything? The way I look at it, you don’t run yourself into highs and lows like other parts of agriculture.”
Alberta journalist Judy Schultz told producers they can’t afford to stay quiet against the growing voice of restaurants that blame supply management for high Canadian dairy prices.
Schultz said an informal survey of milk prices in Sherwood Park, Alta., Los Angeles and New Zealand found prices to be higher in Canada than in the United States. However, New Zealand, with no supply management system, had the highest prices.
The price of a two-litre bottle of milk, when adjusted for the Canadian dollar, was $3.15 in Canada, $2.40 in Los Angeles and $3.73 in New Zealand.
“How would they explain New Zealand, with no supply management, has a 55.4 percent higher cost for milk than Los Angeles?” she said.
“People should be careful what they wish for.”
