What would happen if supply management were dismantled?

As largely urban-based consumers, we expect that local farms will produce safe, nutritious and high-quality food for our families. However, in order to meet these expectations, BC’s family farms must remain viable. If the supply management system were to collapse, negative consequences would ensue for our communities, our economy, and food security —while providing few price benefits for consumers.

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Why is milk sometimes cheaper in the U.S?

Consumers in the U.S. pay twice for their dairy products: once at the checkout and again at tax time. This occurs because U.S. public tax dollars are paid to dairy farmers, both directly and indirectly through government subsidies. This does not occur in the Canadian dairy industry; Canadian dairy farmers receive their income from the marketplace.

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Does supply management encourage overproduction?

Definitely not. Unlike price support in other countries, supply management in Canada ensures that total production responds to the Canadian demand for dairy products. Each producer fills a part of the demand (quota) without producing more than what is needed in Canada.

Does supply management make products more expensive?

No. Supply management provides consumers with access to high-quality dairy products at fair prices. The retail price evolution of these products is in line with that of other food products in Canada.

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Are dairy farmers subsidized?

No. Canada’s supply-managed agricultural system is designed to produce only the amount of milk that is demanded by the market. As a result, producers’ milk revenue comes from the marketplace. The Canadian dairy industry has made significant productivity gains without the help of expensive government programs.