Supply management protects Canadian farmers from foreign competition but producers pay ridiculous amounts of money for quotas in order to be able to operate and those quotas are limited which then limits supply, which leads to higher prices.
When I was younger and our family lived in Vancouver, we made weekly trips to the U.S. where it was cheaper to buy just about everything, including dairy products.
Researchers at the University of Manitoba figure the added cost of supply management for Canadian families can be up to $466 yearly.
The fact is, supply management in Canada is a costly problem for consumers and also hurts dairy farmers.
Watch as I explain the other practices employed by Canadian governments, left or right, that have knee capped the family dairy farm with protectionist measures for political gain.
While it’s true that the states also subsidize their dairy industry, the bottom line is, Trump is after Canada over the issue and he’s right - NAFTA needs to be renegotiated.
Besides, this could be the first step towards dismantling supply management and letting the free market reign.
Family dairy farms have always been great, let’s just make them competitive again.
Something must be done about this government mismanagement that’s been going on for far too long.