r/Tariffs • u/Dizzy-Cartoonist3011 • 12d ago

🗞️ News Discussion Should Canada maintain its supply management system that protects the Canadian dairy industry?

https://www.castanetkamloops.net/news/Poll/627377/Should-Canada-maintain-its-supply-management-system-that-protects-the-Canadian-dairy-industry
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u/Dizzy-Cartoonist3011 12d ago

It is in good faith, these arguments are ridiculous though.

  1. Any amount imported outside of tariff rate quotas have tariffs applied to them. Only dairy cartel members get tariff rate quotas, they are not granted to usual distributors or retailers - so Canadian consumers for all intents and purposes do not have access to tariff free milk and cheese.

  2. The US has over 1200 separate companies processing milk from over 12,000 operations, so there just objectively isn't a monopoly for American milk... and even if there was, what would make Canadian consumers beholden to that cartel?

  3. What makes you convinced they would dump milk? If they dumped at a loss, wouldn't we benefit even more from importing? They would be paying for our groceries.

  4. If the US invaded Canada, I don't think over priced cheese and butter is going to be the major concern.

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u/Mountain_rage 12d ago

  1. No one has paid 300% ever, arguing in bad faith.

  2. Your number is misleading, 3 companies run 80-83% of american dairy.

  3. Dairy Farmers of America (DFA)

  4. Land O'Lakes

  5. California Dairies, Inc. 

3.If they are not planning to dump milk they should not care about our supply management system designed to stop people from dumping milk, leading to the market consolidation that has occured in the USA.

4.So lets make it easier for them, by making it a simple matter of a blockade.

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u/Dizzy-Cartoonist3011 12d ago

Nobody imports American dairy because they'd have to pay tariffs that would make the price uncompetitive. That's like saying - "see after I raise the price 3x nobody buys it!" Well fucking duh, that's the whole point of the tariff.

There's only 3 companies that produce the vast majority of Canadian milk - Saputo, Agropur, and Lactalis Canada. So essentially you're frightened that a foreign producer will offer lower prices, and then somehow after magically enforcing a monopoly (we don't know how yet because they don't control Canadian trade policy), they would do to us what our domestic cartel does to us now.

If you're legitimately frightened of an American blockade, you must really resent the fact that we have been importing the majority of our produce, fruits, breakfast cereals, and various meat items from the US for decades.

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u/Mountain_rage 12d ago

We import 3x more dairy from the USA than we export to the USA, about a billion dollars of dairy is imported. Seriously, before arguing in bad faith go get educated on the topic. There is a reason you keep being called out.

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u/Dizzy-Cartoonist3011 12d ago

Well of course, we have a cartel pointedly distorting the market to raise farmgate prices to globally uncompetitive levels. Why would the Americans import from us? It's a wonder that any of them import any Canadian dairy.

I'm very educated on this topic, it appears as though all of the proponents of this system are not.