I can identify another problem with supply mismanagement: if it were to end, your assets may suddenly be worth a lot less than they used to be, maybe even less than your debts.
A company that earns guaranteed margins because a regulation, exclusive contract or closed market keeps competitors out tends to stop doing the things that keep a business sharp. It stops scrutinizing its cost structure, investing in efficiency or asking how it would cope or what it would charge if its customers had somewhere else to go. The protection may feel like a moat. In practice, it is closer to an anaesthetic.
The Liberal government will cling to supply management because 1) Its Quebec and 2) Trump hates it. Not to mention its horrible for Canadian consumers. The plan. The plan.
3) it screws Alberta
“The Liberal government will cling to supply management ”
As would any potential ‘Conservative’ government. They have already made that quite clear.
Canada – milking its citizen-subjects since 1867.
The Québec Dairy Cartel carries on as it will never come down. It’s all focused on producing woke and eco BS according to its advertisements. Someone preparing for stiff headwinds would not waste resources on garbage.
The BEST part of Free Market Capitalism is the natural business cycle of booms and busts. Yes, I said the BEST part of Capitalism. It is a natural cleansing of fat, inefficient, businesses that are artificially thriving under supercharged business activity. A natural cleansing.
Technically, quota is not an asset. The producer doesn’t take ‘possession’. It is a license to produce. Do the producers borrow heavily for the right. Of course
Tell that to Farm Credit Canada, RoyFarm, TD, Scotiabank, CIBC, and BMO who are all willing to treat the quota as a valuable asset of the farm, via assignment.
Any sane country would jump at the chance for free trade with a neighbor 10 times as big.
But the deranged Dominion says no.
Senator Kennedy has the right idea.
https://www.youtube.com/shorts/yQjYnocmVak?feature=share
“A company that earns guaranteed margins because a regulation, exclusive contract or closed market keeps competitors out tends to stop doing the things that keep a business sharp. It stops scrutinizing its cost structure, investing in efficiency or asking how it would cope or what it would charge if its customers had somewhere else to go. The protection may feel like a moat. In practice, it is closer to an anaesthetic.”
The first thing I thought of was our holy, government run, monopoly, “free” health care…….
?
dont you mean ‘wholy’?
er, wait, ya, HOLY is more fitting.
dairy products. milk marketing.
well Canaduh, hope you arent depending on me for sales.
l used to go thru a liter about every 3 days.
now? a ‘3 bags in one’? freeze 2, make sure the 3rd kept well chilled because it can be in the fridge for weeks. sometimes end of the month, and ya, if it sours the puppies get it.
then l thaw the next single bag when l get around to it.
screw the whole gawdfersaken cystem. l hate this post national state chock full of liberals.
Leaving the climate propaganda, the Dairy industry in Canada wastes hundreds of millions litres of milk each year, worth about $1.3 billion, while still making things more expense for all Canadians.
https://www.sciencedirect.com/science/article/pii/S0921800924003100