Do Quebec Dairy Farmers Control Canada’s Prosperity?

Recently retired McGill professor, William Watson, explains how ridiculously high the tariffs on dairy products entering Canada are. With the federal Liberals vying for more votes in Quebec, what do you think the chances are of Trudeau & co. reducing these tariffs? How does one say “Zero to Squat” en francais?

https://audioboom.com/posts/6899274-quebec-s-costly-cows-and-canada-s-270-dairy-tariff-william-watson-former-professor-economics-mcgill-university

65 Replies to “Do Quebec Dairy Farmers Control Canada’s Prosperity?”

  1. This would be the perfect time to break Quebec’s stranglehold on the Canadian body politic. While we are at it eliminate the French as an official language, and eliminate the metric system too!

    1. Agree on the first part, but why eliminate metrics, a much easier and more sensible system than the old imperial?

    2. well, 50% of all industrial milk in Canada comes from Quebec. the tail has been wagging the dog all my life and that life extends to an into the second world war. english Canadians really are dumb.

  2. Trois fois rien.

    Which is about as many French-speakers as ought to have been allowed to stay in Canada after 1763. They’re the reason British America is divided to this day.

  3. Time to bid adieu to the fwench traitors.

    The liberal party is 100% beholden to quebek and china. Canada….not so much.

  4. You have to laugh at the irony of time and political imperatives. Back in Reform days a key issue was an ‘accounting’ of Confederation. While the quaint “We want in” saying became standard many of us want a fiscal accounting of where the federal money goes. That never happened. One would never expect it to have happened under a Liebel government but then it never did under a merged Reform/CP government either. This was a government dominated by Reform MP’s. By that time the CPC leadership had demonstrated a lack of faith in the ‘grassroots’ and in fact had reassumed the Mulroney top down leadership.

    Lots of reasons to question the amount of money Quebec receives thru equalization and indirectly through structural gifts from successive federal governments. Citizens should not stop there as the Maritimes fairs even better on a per capita basis. The real nut of this discussion is how much Ontario sucks back into that province. Who produces GDP $’s and who consumes those dollars? This is a national discussion that will never take place until the country stalls into a debt cardiac arrest which is coming sooner than most think. It will break Canada apart. It is why I do not take Canada as a serious country. This is a unaddressed national security issue.

    1. courtesy the clucking manning. parodied unendingly reforrrrrrrrrm reforrrrrrrm and that hick expression of his and the farcical thing about not sitting in the front row in the HoC.

      a hard core right winger beholding to the means of acquiring power. and the ‘we know better’ attitude rampant in the party cystem (note the spelling).

  5. I despise marketing boards but the US protects its dairy industry just as much as we do. Why do you think its in NAFTA? In the US, the government gives cash to millionaire dairy farmers. In Canada, poor people give cash to millionaire dairy farmers.

    1. Not entirely accurate. In fact, the howled about subsidies in the US for dairy farmers amounts to about 35 cents a litre. Even when that is added to the U.S. average price for dairy, the price of milk is almost double in Canada.

        1. Nope….not accurate. According to a study done by Dairy Farmers of Canada Policy Conference in Ottawa “It showed that American dairy farmers benefit from the equivalent of US$12.06 per hundredweight or C$35.02 per hectolitre (35.02 cents per litre). That’s close to 70 percent of what farmers are paid now for their milk.” See that? 35 cents per litre. So even with that added to the average price of milk in the U.S., the price of milk is almost double in Canada. As I said previously.

          1. Ad shows 4 litre milk at Walmart Canada $ 4.65 CDN
            A US price is $3.50 US per gallon = 3.50 x 4/3.785 x 100/77 = $ 4.80 CDN per 4 litre.
            WTF is the argument about.

            A Canadian farmer gets about 75 cents per litre.
            An American farmer gets about .366 per litre plus .35 per litre subsidy = $.72
            It’s in the ballpark.

            US milk price – $16 per 100 lb = $16 per 45 kg = $.355 per kg = $.366 per liter

    2. You raise an excellent point. The US government should remove all subsidies to its farmers. Assuming Trump could make that happen, do you think Trudeau would ever allow the protection to Quebec farmers to be rescinded?

      1. Laudable idea but difficult with big bad Europe out there with their micro farms that exist only to collect subsidy. They are also a powerful political lobby; witness French farmers shutting down Paris at the hint of ending their subsidy free ride.

        End all subsidies, tariffs and other protectionism; the only acceptable position. That would mean limiting government of course, unacceptable to the hobgoblin set.

  6. Not to defend Quebec’s dairy farmers, but it’s Quebec’s giant dairy PROCESSORS (Agropur; Saputo; and Parmalat) who are much bigger, much more powerful bad guys in this enduring outrage. They ‘donate’ millions each your to Liberal political coffers.

  7. Jason Trudeau’s eyebrows were seen crawling across a Southern Quebec Dairy Farm causing a small stampede.

    Get ready to empty your cow hide Canadian wallets.

  8. The carzy thing is I am always eharing the dairy farmers complain they are paying hundreds of thousands/millions to but the milk quotas. Why do they not understand that if they ddn’t have to buy quotas, THEY WOULD HAVE 100,000 OF THOUSANDS MORE CASH TO INVEST IN THEIR BUSINESS

    1. There were a lot of farmers who wanted to keep the CWB, even though it was shown that western farmers ALWAYS got less than market. But, Liberals can’t comfy fur without pilfered cash…

  9. Yes.

    Which is why Canada, under the current rules, is guaranteed to fail.
    If you want success; the only way is out of Canada.

  10. How many billions (trillions?) of dollars have been thrown into the wind to mollify Quebec over the last 100 years or so? At some point (50 years ago) you have to step back and ask yourselves if it’s worth it.

    1. back in the 90s when cretien had that near miss with the referendum, just before that I visited the local LIEberal mp and suggested if the vote went in favour of separation, then there needed to be a RATIFICATION. a very popular process n’est pas? treaties, strike votes, etc. if the ratification passed, RoC would be the 1st to recognize the new nation of kewpiebeck, if it failed, STFU YOU DONT GET ANOTHER ONE FOR 40 YEARS.

      the blackmail is over. but nay, cluck cluck cluck goes the LIEberal mp.

      CONservatists were no better, caught a talk show during mulruin’s regime, on TVO ie TAX PAYER funded, the separatist was using the freebie TAX PAYER funded air time to spout his views. I called the CONservatists and bytched. the response? yawell yawell yawell he has a riiiiiiiight to express his views, snarfsnarfsnarf. oh. on MY dime? why aren’t they made to PAY for this free air time?
      pierre bourgault. he’s dead now.

      “they all do it”.

    2. ” you have to step back and ask yourselves if it’s worth it.”

      Depends on what “IT” is and if you think Canada will exist if “IT” were to go POOF!
      I tend to think that Alberta could easily replace “IT” and everybody would live happily ever after.(except the Froggies)

  11. Robert is right. The chances of the marketing boards being eliminated are zero to squat. Too many politicians and too many political parties, not to mention the dairy and poultry producers, have vested interests in maintaining the status quo. The number of dairy and poultry producers is continually declining as only concerns with deep pockets and afford to expand their quota base. Just like the native reserve system will never be dealt with. Hell will freeze over first.

    The example of the Wheat Board was different in that most farmers wanted it gone as they saw the price and sales advantages that their non Wheat Board crops gave them. The Wheat Board was an anchor holding wheat and barley farmer down. Only the socialist types wanted to maintain the CWB.

  12. Where are we to go when treated so poorly by Canada?
    What will your much fairer place be like tax-wise?
    These are all questions that need further discussion.
    In the meantime how does Lethbridge, Montana sound?
    Ditto Calgary, ditto Red Deer, ditto Edmonton? Ditto every town and hamlet across lovely, oil rich, and mountainous Alberta. We do have something to offer in the way of natural resources, thereby not becoming a burden on anyone.

    Go it alone? Now what would that mean? Untold losses for some, massive migration back to Canada, ie out of Alberta for some, establishing new services etc. Other possibilities to consider like a Western Canada country bordering from Manitoba to Alberta? B.C.? Oh, whoa, they don’t like anyone, they are a Kingdom already.

    What. Are. We. To. Do. ? Where to go? We’re stuck in quicksand…

    1. Well I could not stand it any longer and left 2 years ago.
      Living in Tallinn Estonia and it is beautiful and not a backwater former Soviet satellite sate. More modern and clean than Canada and almost zero crime.
      In NS 2 Mobiles and Fiber me about 450-500 a month.. In Tallinn the Mobile for calling all over Europe is about 30 bucks a month Can and Fiber and TV ( 5G! ) is another 30..
      Insurance and taxes.. very low and you can actually email the govt and get a reply the same day..
      And only 2 genders and thus 2 both rooms..
      I am so pissed off what has happened to to my country I lose sleep over it . Anybody who voted for Liberal in last election is stupider that Shinny Pony so there are a lot of them.. and they are not going away..
      Can go on and on.. Free speech.. Bill 103…
      Honest when I tell people there what is happening on the culture side they really think I am exaggerating and crazy.. Picking gender, Teaching kids to be perverts ..in the schools… Lost count of genders and … Ya Quebec !!!!
      That is my rant and feel much better now..

      1. It is none of my business but if you are young, able and adventurous you might want to consider moving to the United States. When the Liberals are in power in Canada, they have a Socialist agenda whereby they try to make you dependent on them. We generally have a lot of Canadians moving to the U.S. for work when the government ruins things for business with high taxation etc. We call this the ‘ brain drain.’

        Oh, and the mobile phone fees are less costly there too, I believe.

        Wishing you the best of luck, George.

  13. You would think all the SJW’s who foam at the mouth as they rail about the 1% or Filthy Capitalist or plutocrats would stand up for “working poor” who would benefit more than anyone with lower costing food. But nope. Crickets. They love central planning dogma even if it means enriching a few Big Corps because they need that foil … to eventually impoverish and starve us all.

    1. So true; regarding the Major Canadian Corporations; not only in Quebec, but especially in Quebec support the Liberal Party and Their corruption.

      Decades of Liberal Control tried to push the Large Business meme as Conservative situation. Aware voters understand this as a falsehood.

  14. Back when mandatory participation in supply management took place, there where conditions.
    The operator had to have a minimum number of producing cows which required the farmer to expand (at his cost) and other requirements such as the processors having to “modernize” which also meant expand at their expense. Many farmers and small dairy’s at the time made the decision to leave the milk market altogether rather than have to incur that debt load. This just prior to the huge interest rate increases that occurred under PET.
    And of course if as a farmer you increase herd size you need to increase acreage in order to feed said herd.
    If the liberals suffer politically from this then we can attribute it to the sins of the father being visited on the son.

  15. “The current Conservative leader joked to the press gallery dinner that he owes his job to the milk lobby. It’s actually no joke.”

    It’s extremely unfunny if you aren’t a member of the socialist cabal that currently hold about 60% of the seats in parliament. We Canadians have a clear choice, bad or worse.

  16. The topic of the Milk Marketing Board was featured here at S.D.A. last week through a link offered by B A Rupertsland of the John Bachelor Show featuring Wm Watson, there is always more commentary to be made on this topic, however…

    …see here we have the John Bachelor show in snippets. The various topics are worth mentioning also within this thread as they appear.

    One topic that is of interest to many is the American Space Industry. They’re Back! Recall in 2011 Obama laid off tens of thousands at Cape Kennedy / Cape Canaveral. The book “Spaceport Earth” by “Popular Mechanics writer Joe Pappalardo describes great news for Space Ex for the next 100 years.

    I once visited and enjoyed a guided tour by bus of Cape Kennedy’s Spaceport. It is immense! One was ‘greeted’ with the tiny space thing that John Glenn went around the world in. It was right at the entrance to Spaceport just out in the open, on the ground, surrounded by people taking photos. This was a great tour that I will never forget. Oh, the wonderment of it all!

  17. The decline in Alberta’s oil industry (since Notley) is larger than the entire Canadian dairy industry ($6 billion/yr). So subsidies clearly cannot be about the economy.

    1. “So subsidies clearly cannot be about the economy”

      When the Feds got into trouble and the IMF told Paul Martin, our Finance Minister under PM Jean Cretin to stop writing the budget on a paper napkin the Feds opened the Western taps and in their goodness granted Income Trust Status to the Patch. They did so out of shame because of the need of ” da money- eee”. It kept those guys off their backs but they never heard the end of it from the chorus of complainers.

      History will come full circle and repeat itself. It will happen again, much to their chagrin. The electric cars, windmills and solar panels be damned. They were one of the biggest scams ever, for Liberals by Liberals. They know we knew it, yet they robbed us anyway. We’ll never recover now.

  18. Another irony.
    All our current ills are a feature of the regulatory regime, our embedded wealth redistribution aka fed-prov transfers, and our inability to remove trade barriers between provinces which where put in place directly or indirectly to recognize the “french fact”.
    Its been noted this didn’t start recently but over generations after the British victory on the Plains of Abraham.
    Why the British did so is debatable but the fact is that it has ingrained the ideology in one demographic that by virtue of being born in Quebec one is owed something and the ROC is on the hook to pay for it or else…. well something.
    One caveat to this is that its not the everyday Quebecer that has this sense of entitlement the culture where this truly manifested in is Quebec’s rent seeking political class.
    The irony is that until recently it was always the choice in Quebec between liberal corruption and separatist threat.
    Now that the separatist ruse has been shown for what it is the liberal corruption is no longer acceptable.
    Sucks to be them

  19. Are we just going to ignore that the Americans have the same style quota tariffs on dairy and many other ag products?

    That they dont pay any tariffs shipping to Canada because all of it is within the quota?

    That they subsidize their dairy to the tune of billions and we do not?

    That they shipped 636 million worth of dairy north?

    That they have a huge dairy surplus with Canada?

    That they continue to expand subsidized production even though price and margins are falling rapidly? (Exactly like Chinese steel)

    Canadian tariffs on dairy is a straw man. Another day, another ridiculous SDA narrative blown to pieces.

    1. Dairy tariffs may be a straw man, but Trump will torch them if we play the blame game.

      Insist all tariffs come off, then non-tariff barriers. That is much better than Trudeau’s I will fight on the beaches to save the dairy industry shtick. Play Trump’s game, move him off ideas of trade balances, let the chips fall where they may. Economics 101 says the smaller economy benefits comparatively more than the larger economy they free trade with. How soon we forget.

      The petulant child bit will serious damage this country, which relies on US exports for 20% of its GDP.

      Trying to play whack a tariff with the US will result in a sledgehammer response. Why can’t people get real?

      No wait, we go down but Trudeau keeps power; like I said, all good from their perspective.

      1. So what you’re saying is capitulate to Trumps misleading argument and just roll over?

        1. So there are no dairy subsidies in Canada? Misleading in what way? Oh lack of context?

          OK Trump should do that, but you first.

        2. If our politicians and bureaucrats were intelligent they would be aware of these issues and negotiate intelligently. I don’t see any sign of that.

    1. “Where would Western Canada be if we were our own country”?
      We would be wealthier, and proud of it!

      1. Undoubtedly! And we wouldn’t have to nervously await Toronto influenced new laws based on their Big City problems.
        This Country is too “diverse”, to use a word I hate, but the East sees us only as a provider of raw materials, not equal citizens.

        Trudeau at least was honest when he said in his opinion the best PM’s came from Quebec, and that was previously matched by Chretien’s statement that he felt more comfortable dealing with easterners. We didn’t get the message, apparently.

  20. The probable story behind Trudeau & Trump dust-up goes like this… Trudeau couldn’t help bragging about how the Marxists have created the African- American racist agenda in the USA (Actually there are no hyphenize’d Black Americans….Only Americans who are Black)

    Trudeau asked trump “Why is it that Canada has the French problem and the USA has the Black Problem” Trump responded “WE HAD FIRST CHOICE”….Trudeau only realized he was insulted after Trump had left the C7

    Trump then threw a grenade into the French-Canadian dairy Industry..Touché Marxists (Note Hyphen)

  21. Get rid of all Tariffs and subsidies FREE TRADE IN CANADA AND UNITED STATES!! All supply management & subsidies gone TRUMP will be applauded and Trudeau will be TOASTED!!

  22. Just bought a gallon of whole milk at one of the many Ohio Walmart stores. Set me back $2.18. If tariffs were not added to the US milk going into Canada, who would be buying milk from Quebec?

    1. The tariffs only kick in after a certain amount of quota. They meet the quota then stop shipping, nobody actually pays the tariff.

      The USA does the exact same thing.

  23. Again what narrative? That Canadians pay more for dairy, that we shouldn’t support the idea of removing all tariffs? Your rationalization is showing. No matter we could be 100% right on dairy, which we’re not, if would make no difference to the US administration. Never has, and never will even if Dems win back Congress and WH. Go study history, maybe you’ll be able to comprehend issues beyond your “well researched” superficiality and refusal to accept reality. I know you are but what am I? Yeah great argument; if you’re seven.

  24. The Canadian dairy solution is a consumer subsidy. The poor are hit hardest. Unconscionable.

    Yes all governments subsidize agriculture. It is done in many ways. Reduced property taxes fuel tax etc. Reduced loan rates through provincial lending financial services. The list is endless.

    I was at a branding recently and the ranchers discussed how to get a cattle handling system (head gate) for free. The AB government (taxpayer) has some program where ranchers can get free equipment.

    The point of this is agriculture has all kinds of subsidy that isn’t visible.
    The dairy boys qualify for all the Ag subsidies.

  25. Maybe this is just a gimmick on both sides to squeeze even more out of the populace without raising taxes? You tarif our goods, we tarif yours, watch both government coffers go up.

  26. Ben Dover consumer. Big Government has your back … side in its sights so take it, without lube, and be thankful they don’t lock you up for having an opinion.

  27. someone told me that the powdered milk used in the making of processed food in Canada comes from the USA, not from Quebec, which I find surprising.

    Google does not help

    Anyone knows anything about this ?

    1. I understand that Milk Processing in Canada can only supply skim milk in Powdered form.. The system is all Fresh milk , no Blends etc (Source Canadian Senate hearing from memory)
      Canada has a near zero supply if the Fresh Milk supply is interrupted ( No Storage) They depend on our supply of powdered milk in a emergency (like a war) .. I don’t think we Americans in NJ/NY have any fresh Milk.. I remember when the east coast States agreed to a price increase because NYC was setting record LOW prices….Milk when up ~ 25 cents a Gallon..

      JMHO

      1. Canada has 471 Dairy plants. The supply won’t be cut off.

        Canada is being hosed on trade in the dairy industry. Imports $969.4 million. Exports $235.3 million(2016). Trump’s whining is simply whining. It’s like his complaining about Canada’s manufacturing exports when Canada has almost no manufacturing. We have a small trade deficit with the US. Our major exports are $70 billion of oil. We also export large amounts of other primary products. Our manufacturing trade deficit with the US is brutally obscene, in the tens of billions.

  28. Canada dairy exports to US $113 million
    US dairy exports to Canada $557 million
    Now what the F is the problem supposed to be?

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