The price Canadians pay at the grocery store reflects the true cost of production for dairy farmers. Demand is monitored by farmer marketing boards, meaning provincial and federal governments do not need to provide financial support to the dairy industry. By keeping supply in line with demand and pricing items to reflect the cost of production, supply management ensures that local dairy farms succeed as businesses and make strong contributions to the Canadian tax base.
Because the system is self-sustaining, Canadian consumers only pay once for the dairy products they purchase. They don’t pay a second time through their taxes. In addition, stable pricing allows consumers to budget reliably for their families’ essential food products.
