Vanclief calms dairy sector

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Published: August 26, 1999

Agriculture minister Lyle Vanclief last week reprimanded one of his senior departmental officials for “fear mongering” by predicting the demise of supply management.

Vanclief vowed the government will protect the system and supply management will survive “for a long, long time ahead.”

Since his 1998 appointment by Vanclief, Canadian Dairy Commission chair Guy Jacob has been arguing that when Canada in 1994 agreed to convert supply management protections from quantity-based import controls to tariffs, it guaranteed the eventual demise of the system.

Since supply management depends on protections from import of cheaper foreign product and since tariffs will diminish over time, the system one day will find itself facing enough import volume that it will not be able to effectively control domestic production nor set cost-based prices.

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Jacob has said it could take 20 years, but supply management ultimately will disappear.

Vanclief generally has ignored the comments of his senior dairy official but last week, he responded.

During an Aug. 19 news conference to unveil Canada’s agricultural bargaining position for the imminent round of world trade talks, Vanclief vowed that Canadian negotiators will strongly defend the country’s right to operate supply management marketing systems.

A reporter from the Quebec Farmers’ Advocate noted Jacob’s predictions of demise and wondered how the two could be reconciled.

“I’m disappointed if someone in the dairy industry is fear mongering about the future of supply management,” said Vanclief.

The government plans to protect it.

“Those in the dairy, egg and poultry sectors can have every confidence in the view that supply management will be there for a long, long time ahead,” he said.

In the past when Jacob has presented his controversial views to Canadian dairy farmers, they and some Liberal members of Parliament have accused the CDC chair of contradicting government policy. They have called on the minister to replace him.

Jacob has said he simply is drawing the logical conclusion that while the government may want to keep protective tariffs high for as long as possible, the pressure of trade deals will inevitably reduce them to the level at which they do not offer adequate protection.

Vanclief has not responded to calls for Jacob’s replacement with someone more inclined to sing from the Liberal government policy song sheet.

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