Myth: Supply management prevents young entrepreneurs from going into agricultural production.
Reality: Quite the opposite! Young farmers see supply management as reassuring because it not only helps them become profitable and plan their development in a predictable environment, but also provides them with a decent and fair income without subsidies.
According to a study by Quebec’s ministry of agriculture, fisheries and food (Ministère de l’Agriculture, des Pêcheries et de l’Alimentation du Québec), 37% of young farmers choose to go into milk production, while the dairy sector accounts for 28% of agricultural production in Quebec.
of young farmers choose to go into milk production
Myth: Supply management inflates consumer product prices.
Reality: Supply management ensures that a wide range of high-quality products are offered at reasonable prices. For example, a recent comparison of prices around the world shows that the weighted retail price of milk in Canada holds up well in comparison with the price paid in other countries.
Supply management does not have a direct effect on the retail price. The retail price is established by a set of a factors and partners, from processors and retailers to government bodies, in the case of milk.
* Hormones that stimulate dairy production, such as bovine somatotrophine, are allowed in the United States, but not in Canada. All milk sold in Canada is free of them. Source: Dairy Farmers of Canada and Nielsen, 2017.
Myth: Supply management harms trade between Canada and its trading partners.
Reality: Supply management does not harm Canada’s trade. All countries have policies that protect their agriculture. Although border controls are one of the pillars of supply management, the Canadian dairy and poultry market is still a lot more open than that of the U.S. and other trading partners, due in part to the market access granted by Canada in various trade agreements.
Furthermore, once the Comprehensive Economic and Trade Agreement (CETA) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) have both come into force, there will be even greater access to Canadian supply-managed products.