Canada: Ridding Milk Quota System Would Have Its Downsides, Farmer Says
Source: dairynews.today
A Canadian farmer argues against adopting the U.S. free-market system for milk production, citing potential for market instability and negative impacts on producers and consumers.
In 2024, the average annual consumer price index for dairy products increased by two per cent, compared to 3.4 per cent for all food products, the commission said.
The potential elimination of Canada’s supply-management system for milk production is being debated, with some suggesting it as a strategy to appease the U.S. during trade negotiations.
One veteran producer, Bernie Kamphof, claims that adopting a U.S.-style free market system could lead to instability, mentioning the tendency of such a system to cause overproduction, leading to price crashes and necessary government bailouts.
In contrast, Canada's current quota system, while criticized for occasionally leading to milk dumping, provides price stability. Advocates argue that careful management can prevent such waste, allowing farmers to maintain consistent pricing, reflected in the dairy sector's contribution of over $8 billion in net farm cash receipts in Canada in 2022.
The potential elimination of Canada’s supply-management system for milk production is being debated, with some suggesting it as a strategy to appease the U.S. during trade negotiations.
One veteran producer, Bernie Kamphof, claims that adopting a U.S.-style free market system could lead to instability, mentioning the tendency of such a system to cause overproduction, leading to price crashes and necessary government bailouts.
In contrast, Canada's current quota system, while criticized for occasionally leading to milk dumping, provides price stability. Advocates argue that careful management can prevent such waste, allowing farmers to maintain consistent pricing, reflected in the dairy sector's contribution of over $8 billion in net farm cash receipts in Canada in 2022.
Key News of the Week
