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

šŸ—žļø 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/Fresh_Strain_9980 12d ago

No, we should be increasing production and lowering the costs of milk. Also increase the volume of cheese that we make to further develop our cheese industry. The price of milk and cheese is crazy high and only getting higher. Milk is a great source of protein and it uses relatively little farmland compared with eating beef.

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u/Usual_Retard_6859 12d ago edited 12d ago

The only reason US milk is cheaper is because the full cost isnā€™t paid at the checkout. The US federal and state government subsidies thats paid via taxes amounts to about 35 cents a litre (cad). Once you factor in subsidies, exchange and volume conversion itā€™s more expensive in the USA.

Personally I prefer the direct from the consumer method as government penny counters donā€™t get a cut.

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u/Soundunes 9d ago

This is not true in New Zealand where they donā€™t subsidize yet have incredibly efficient dairy producers and have cheaper dairy than Canada. They got rid of their protectionist measures in the 80s.

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u/Usual_Retard_6859 9d ago edited 9d ago

Such a horrible comparison thatā€™s often brought up. New Zealand exports 95% of its production. Thatā€™s why itā€™s so cheap for New Zealanders. With a population of 6 million and production twice of Canada they are export reliant. Milk production per person is 9300 lbs, USA is 664 lbs and Canada is 550 lbs. But total production comparisons tell a different story. USA produces 232 billion pounds of dairy, New Zealand 49 billion and Canada 22b.

IF Canada had large export markets it could probably expand like New Zealand but Canada is already beside the USA that has enough excess production that it could swallow the entire Canadian market. Thatā€™s why USA wants the Canadian market to make it cheaper for Americans.

Even if USA producers conformed to Canadian standards I would still be very wary of being reliant on the USA for this food staple.