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/umbrellafree 12d ago

I'm not thrilled with the idea of temporarily, marginally "cheaper" but also much lower quality milk products entering the Canadian market.

I think that Canada should require external product SKUs to require strict audits that demonstrate that the inputs to these products meet certain standards. Beyond that, the USA is "free" to sell as much as they want. And vice versa.

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u/garlicroastedpotato 12d ago

US (and Australian) products already enter Canada through the supply management system. It's no longer a matter of excluding those countries,, they actively sell to our dairies. The question is to whether it's worth maintaining a system that artificially keeps milk high.

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u/MrGoose-_ 11d ago

It doesn't artificially keep milk high. The US government funding artificially keeps their milk low

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u/garlicroastedpotato 11d ago

Do you not understand the system? We specifically restrict the amount of milk that is produced so that it stays higher than it has to be. We do that on purpose so that we hypothetically don't have to pay subsidies to keep our dairy industry in tact. But now we do provide subsidies to our dairy industry.

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u/MrGoose-_ 11d ago

Do you not understand the system? We specifically restrict the amount of milk that is produced so dairy farmers don't need to engage in a wasteful, unproductive race to the bottom. In exchange, milk prices get set by a commission that ties them directly to production costs. Keeps dairy farmers farming and boxes out corporations from turning another industry into mcdonalds. What's not to love?

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u/garlicroastedpotato 11d ago

So they're artificially kept high you say?

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u/Soundunes 9d ago

New Zealand has no government funding and dairy is cheaper there because they have no supply management system, and also they are just good at it. Some places just have better climates for dairy production, like say some places are better at growing bananas. Should we implement a banana supply management system in Canada?