October 03, 2018

#USMCA is the "death knell" of supply management

Ezra LevantRebel Commander

On last night's episode of The Ezra Levant Show, Ian Lee, Associate Professor at the Sprott School of Business, joined me to discuss the impact the new USMCA will have on supply management and Canada's Dairy Cartel. 

Ian explained how supply management is effectively a communistic system similar to the failed policies of the Soviet Union. Every time a system similar to supply management has been imposed on an industry it has produced disastrous results.

WATCH my interview with Professor Lee to see how the abolition of supply management will ultimately benefit consumers and the Canadian dairy sector.

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commented 2018-10-04 08:43:53 -0400
One thing is certain, the pissing and moaning and whining from Canada’s dairy farmers lays the blame for this apparent disaster on Trump’s shoulders. As I predicted, turdo la doo isn’t taking any of their heat.
commented 2018-10-04 01:53:14 -0400
Ken Conrad the CWB never saved any Wheat Farms either. These schemes are all about government control.
commented 2018-10-03 15:41:18 -0400
Thank you, KEN CONRAD. It is so nice to hear some dairy truths from someone who was in the business.

You mentioned that supply management did little to prevent the loss of dairy farms across Canada. Indeed! And a strong argument could be made that it contributed to the demise of the family farm.
commented 2018-10-03 13:44:35 -0400
As a retired dairy farmer I have numerous concerns with and I am not a proponent of supply management. That being said I can relate to the predicament dairy farmers are in. In order for a small dairy farmer to earn ends meat it is necessary that they bring in of farm income, in essence subsidizing the retail price paid by consumers…

Indeed, in 1970 there were 122,194 dairy farms in Canada, in 2007 there were 14660 and in 2017 there were 10961.

During that same above time frame the number of dairy farms in the USA declined by 93% and in Canada the percentage decrease was 91% (virtually the same amount). Supply management did little to prevent the loss of dairy farms across Canada.

The above article also notes that Canadian dairy farms are becoming larger, the number of cows per farm has risen by about 205 percent, and the volume of milk produced per farm has increased by 547 per cent … Indeed, a trend that lends itself to confined animal feeding operations and that in turn leads to compromised milk quality!

There are respectively two main reasons why we are loosing dairy farms in both the US and Canada… decreased milk consumption and government cheap food policies that encourage economy of scale management practices. Canadian supply management with its price setting powers and over inflated quota values is not a solution to the current “usury based system” that demonstrates contempt for diversity, focuses on cheap food and treats farmers as subordinates, be it capitalism and even more so socialism.
A question the North American consumer ought to entertain… is it in their best interest and should they consider dishing out more disposable income on average for food comparable to Germany at 12% or perhaps Mexico at 25%. Currently the US consumer pays 6.7% and the Canadian consumer pays 9.5%?