Myth

Supply management stands in the way of a free market.

Fact

Compare the way milk is produced in the United States to in Canada. Here, supply management ensures farmers’ costs of production are covered by the price they get for what they produce. This means Canadian taxpayers do not subsidize these farmers. However, in the United States, taxpayer dollars subsidize American dairy for irrigation, nutrition and feed as well as through government loan programs. They need this state support because the market price usually doesn’t cover their costs of production. They also need it because, unlike in Canada where supply is matched to demand, American farmers often produce more milk than they can use. This leads to the destructive boom-and-bust cycles so typical of farming. Now they want to sell us their excess and put an end to Canadian supply management.

Topic

Milk

Label

Myth

URL

https://www.broadbentinstitute.ca/don_t_let_supply_management_myths_spoil_the_milk