On his Substack, Dr. Sylvain Charlebois debunks ten myths about Canada’s supply management cartel that interfere with Canadians’ ability to engage with the idea of dismantling the government’s favourite oligopoly:
Suddenly, everyone — and their grandmother — seems to be an expert on supply management.
That newfound interest is healthy. Canadians are finally examining the benefits, costs and contradictions of a complicated system affecting roughly one-quarter of the country’s agricultural economy.
A generation ago, few economists openly criticized supply management. Those who did faced fierce attacks, while the dairy lobby deployed a nationwide marketing budget approaching $200 million annually. Remember the Doug Gilmour milk advertisements? Today, the “Milk” logo appears on Toronto Maple Leafs jerseys through a multimillion-dollar sponsorship.
For years, criticizing supply management was almost politically taboo. Social media has changed that. Consumers can now see milk being dumped, compare Canadian prices with those abroad and question why Ottawa repeatedly compensates a protected industry.
Dairy farmers are not the problem. They operate rationally within rules created by governments and administered by marketing boards. But those rules should not be immune from scrutiny.
Here are 10 myths Canadians should stop believing.
1. Dairy farmers are poor […]
2. Supply management is saving the family farm […]
3. Canadian dairy farmers receive no subsidies […]
4. Trade agreements make every dairy farmer lose money […]
5. Ending supply management would automatically lower prices […]
6. Farmers alone pay for dumped milk […]
7. Milk dumping is unavoidable […]
8. Canada has fully respected CUSMA […]
9. Supply management guarantees food security […]
10. Reform means abolishing the system overnight […]
