Even for the CBC, I have to admit that they explain the supply mismanagement situation pretty decently, particularly regarding the troublesome import quota issue. So while it is possible for American dairy products to get into Canada tariff free, importers first have to convince Canadian processors to allocate production space to them. I’d hazard a guess that they would have to pay for that space, which is why it doesn’t happen very often. Overall production quantities are ultimately limited by the intricate Canadian dairy pricing mechanism; in other words, consumers must be prevented from getting a bargain.
CUSMA sets import quotas for 14 categories of dairy products. That allows an annual volume of each category to enter Canada tariff-free, and any imports exceeding the quota would get hit with sky-high tariffs of 200 per cent or more.
Much of the quota volume is allocated to major Canadian-owned dairy processing companies such as Saputo and Agropur. Industry analysts on both sides of the border say such companies have little incentive to import U.S. products that would compete with their own.
Explain the Canadian Dairy Supply Management System and outline the capital cost of purchasing quota As a percentage of necessary capital for a dairy operation that and how financing it adds to the cost of production
https://www.perplexity.ai/search/explain-the-canadian-dairy-sup-Zj4TwafyRwWvT41gy_Poqw
Shocking!
Sounds like a carbon copy of Canada’s taxi cartels.
I posit that Canada ranks highly among the world’s most cartels per capita. And is one of the biggest reasons why everything is so expensive here. All by design.
Considering the CBC put this out without a heavy price/supply control bias, indicates to me that the Feds are being forced to consider it. They are having the propoganda arm soften this reality so that it is more saleable to the Canadian public, who will then not view it as a loss (which it isn’t but they have been told for decades that it was). The Feds are going to take a couple of weeks to fluff the Canadian public, then will eliminate dairy controls. This will partition a very powerful lobby and voting blocks in Quebec from the Liberals. This is the only reason this atrocity to the free market is still with us today.
“Considering the CBC put this out without a heavy price/supply control bias, indicates to me that the Feds are being forced to consider it.”
You’re right about that. For all the bluster, bravado and “Elbows Up!” thrown at us by the increasingly desperate Liberals (and their Liberal Lite enablers, aka the CPC), they know that they have no choice. A trade war with the US would finish Canada as a country….they could devastate our economy inside a month if they chose to.
All the sheep bleating that “Canada has leverage…we only need the courage to use it!” are just delusional. We could maybe inconvenience four or five US border states for a while. Maybe.
‘Supply management’ in Canada will soon be history. Thank you, President Trump.
What a joke article, protectionists commenting on others’ protectionist policies.
It’s called “expertise”, sir.
What is missing in all this is how much capital for farmers and their banks is locked up in quota. If quota becomes worthless a large percentage of the value of every dairy farm will suddenly become zero. While the government may have great sympathy for the farmers, they are far more influenced by the banks.
Other than trying to ensure that we have local production of essential products, this is the largest obstacle to eliminating Supply Management.
Quota is a large amount of the investment that is financed for young dairy farmers entering dairy farming and it is the retirement nest egg for retiring farmer yeIt is also a huge source of income for banks that finance them.
This indenture system has been allowed to go on for far too long and has built up to where it’s a catastrophe if it continues, and a catastrophe if it ends.
While this has been a focus of discussion, the real issue in Trump’s mind – although he’s not saying it in so many words but hinting very strongly – is the trend towards communism in Canada — and the amount of corruption that has developed in government and on the streets and cartels.
I think Trump knew what he was doing when manipulated Canadians into electing Carney. he wanted canada on its knees.
In my opinion, Carney is a pathetic empty suit, and a sockpuppet for the globalists, who may be quite unhappy right about now.
There is no way out.
As the saying goes, you can’t get there from here.
The dj is on it:
https://youtu.be/kS6LmTjY6tU?si=STG7cLiLs-5Wywre
So which country has a trade barrier? Canada limiting domestic production without government subsidies or the US government giving dairy farmers 70% of their income encouraging overproduction? Since nobody has clean hands maybe they both need to STFU.
Stop fretting. Government subsidies are tackled by countervailing duties.
Coles Notes history: Don Getty took our money and subsidised a magnesium plant in High River. The US slapped countervailing duties on Canadian magnesium. The building still sits empty to this day.
“So which country has a trade barrier? Canada limiting domestic production without government subsidies or the US government giving dairy farmers 70% of their income encouraging overproduction? Since nobody has clean hands maybe they both need to STFU.”
I’ll go with the country that doesn’t embrace and protect a system that keeps the retail price of egg, milk, cheese and chicken *300% HIGHER* than it would otherwise be. I’m going to side with polices that don’t directly hurt poor and middle-class families while benefiting wealthy dairy cartels…but that’s just me.
Question: Knowing that the Dairy Cartel subsidizes milk producers for their products, when we read that millions of litres of oversupply milk have been destroyed, do the producers also get paid for the dumped milk?
Asking for a friend…
Farmers do not get paid for exceeding their quota. If there is an oversupply but within quota the farmer gets paid. I thought oversupply of milk was dehydrated and used for things like animal feed or foreign aid. I could be wrong.
Thx.
We have to ask ourselves why is the government even involved in any of this?
Because Canada is not a democracy, or a republic. We are a monarchy, ran the same way it has been since monarchies were invented. A small cabal of rich rulers, ruling over the poor serfs. It is much like the ancient Roman emperors that viewed themselves as god on earth. Charles may be de facto king, but the prime ministers view themselves as god on earth.