Canada is one of the latest countries to maintain a system for maintaining the supply of agriculture supply system. For more than 50 years, this model has been the subject to increase commercial pressure, especially from the United States. At the time of new concessions fear, this system must be preserved, reformed or terminated? And which price?
In Canada, the supply management system produces milk, eggs and birds. Its goal is to maintain balance between supply and demand, stabilizing prices and ensure decent income for agricultural producers.
It is a system that has been proven, which also ensures food safety
Daniel-Mercier Goin, Laval retired agroeconomic professor.
Daniel-Mercier Goin, an agroeconomy expert and retired teacher at Laval University. (Archive photo)
Photo: Radio-Canada / Matches Chouinard
This system is based on three key elements:
- First, producers offer guaranteed prices that cover production costs.
- Then he set the fees that make up the heart of the system.
- Eventually, Canada’s milk, eggs and bird market are protected by high import prices, up to 300% for certain dairy products.
How are the quotas calculated?
In the case of milk, a fee corresponds to 1.2 kg of fat per day, the daily production of a cow more or less. To simplify, it can be imagined that a producer with a 100 cows flock is between 100 and 120 fees.
Because of the eggs, a fee puts a chicken. In birds, fees are calculated in square meters of production.
Whatever the sector, milk, eggs or birds – fee are adjusted annually to the evolution of demand and demographic changes.
However, above the United States and European Union business negotiations, the opening has been opened in these sectors.
For example, it is currently reached by 10% and 14% of the Canadian Market Market. This opening allows you to enter a certain amount of foreign products without priceless; High rights apply beyond these thresholds.
The supply management is gradually opened among agricultural producers dependent on the system.
The values that explode
Every year, according to the evolution of the market, the authorities established a national production share in the management of the offer that already distributes active farmers in each production site. These fees can sometimes be reduced, but generally increases through demographic growth and food demand.
For a hundred cows farm, only dairy fees can be valid until $ 2.4 million, according to Michel Saint-Pierre. (Archive photo)
Photo: Canada Press / Christinne Muschi
In the milk sector, for example, the fees rose by about 27% over the last ten years. Even if they are charged free, the fees get value in a parallel market.
When a producer sells dairy, it provides land, buildings and fees, which is to say production rights.
The first transactions were made in the prices
Michel Saint-Pierre, the former Local Agricultural Assistant of Quebec, has now the President of the Jean-Garon Institute, a reflection group on agricultural issues. I was at the bank and funded the first bird transaction in the 1970s. $ 2.50 square meter sold
remembers.
Consumer eggs, incubation eggs, milk and product derivatives, chicken and turkey are subject to supply of supply.
Photo: Radio-Canada / Jean-Michel Cotnoir
Today, a fee in the bird area is between $ 1,500 and $ 2,500 in a building in Quebec. It is more expensive elsewhere in the country. In the egg sector, the fees are calculated per layer of $ 245. In the dairy sector, $ 24,000 cost per fee and up to $ 50,000 in Canada in Canada, as Milk farms abound.
Make a calculation: If I want to sell the Quebec or Ontario farm around the tissue cows, so about 100 dairy fees, per 24,000 fee, which replaces $ 2.4 million already. It’s only fees. We have not yet talked about the value of the earth or buildings.
Debt bubble?
According to estimates, the total value of Quebec’s supply management is currently between $ 12 and 15 million. It is a completely artificial value
Michel Saint-Pierre, concerned about the concentration of farms and the consequences of these amounts in agricultural debts.
Quebec farms are almost twice as much as Canadian average
He says it is based on statistical data from Canada. Offer management guarantees a particular price stability, which facilitates credit access. Result: boxes and banks agree based on the value of the fees, sometimes until 50% of this value.
Desjardins CEO Guy Cormier is afraid that the next crisis management “will happen in the agricultural world.
Photo: Radio-Canada
A few months ago, Guy Commier, President of Desjardins and CEO in an interview with a Canadian press journalist, a serious crisis could be taken from the agricultural sector in an interview. According to him, American threats against the supply management system are worrying.
Michel Saint-Pierre also has an impact on the end of supply management and a fee for farmers.
Explains the fear of an analogy: Uber Day arrived in the taxi sector, what did the drivers say, especially the youngest? They found insane. “I paid $ 200,000 to get the Montreal taxi license,” they said. And all of a sudden, Uber arrives. That is the opening of the markets
He explained.
Already, the Federation of Milk Producers has increased the value of fees. On the side of the egg producers, the new fees have no value for several years.
In the bird sector, similar measures will be established this summer to oversee the increase in the value of the value.
Price to cancel this system?
New Zealand is often referred to since the first opened the agricultural market in 1985. This country quickly reorganized by centralizing the export-oriented cooperative.
You cannot compare New Zealand in Canada
He thinks Daniel-Mercier’s professional professional. It is an island with a climate climate that requires fewer buildings and the new zelograpiles have developed the export market 40 years ago.
Australia, for its part, offer offer 2000. He repealed the year. To alleviate shock in the milk sector, the government has established an 11-cent 11-cent tax for eight years. These funds were used to support producers in their transition. However, despite these measures, several producers have left the industry.
Eventually, the European Union also managed the offer in 2015.
Kipster farmhouse, Castenray, Netherlands, near German border. (Archive photo)
Photo: Kipster
In the Netherlands, the market value market resembles the Canadian model, the Government announced almost a decade before the planned compensation.
The transition has been difficult, but the farmers had time ready.
Opportunity to make reform and fracture
In debate on supply management, a point should be highlighted: milk, eggs and bird sectors are not subsidies or government support programs.
This system has no taxpayers that are financially supported by these production.
If we repealed the management of the offer, Canada would not be able to follow the example of the United States or Europe, which is subsidized by producers
Daniel-Mercier explains the Goino.
Other agricultural sectors – Pumps, pork or cow – Takes advantage of support programs financed by public money.
It is not true that the producers will only leave the market. So the real question is: How much will the government cost management management?
The Benoît Livernoche report on this topic will be presented to the program All the land Sunday at 10 P (Them) Here First.
We are not declaring the end of the system or to declare even weakening, as pricing concessions:
Michel believes that Saint Pierre. In addition to the debt, we have no winning conditions to embark on export.
In fact, in the south of the border, the only situation in Wisconsin creates more milk than all Canada.
For book cooperation Our agricultural agricultureRecently Leméac edition has just published, to be aware of the value of this system is essential to create mechanisms to correct its defects in particular in terms of the value of the fees.
It would be better to adapt to current realities or rather than precipitated departure
Saint-Pierre believes.
We need to avoid all costs at the foot of the wall.
2025-05-04 08:00:00
