For Canada Ending Supply Management Is The Right Choice

Does supply management really make sense?

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The average Canadian family pays almost $600 more per year for eggs, chicken and dairy.

Families with kids spend, on average, over $1,200 a year on supply-managed groceries. Amounting to roughly a 2.4% “implicit tax” each year on the annual income of low-income families, while also impacting low-income families five times as much as high-income ones.

Where does this fairly large amount of cash go to?

It goes to 9000 farmers who are rapidly consolidating into larger and larger conglomerates, who realistically could compete against American producers, the same way our other agricultural sectors continue to battle based on merit day in and day out.

So why are we continue to support this group?

Some argue that it is because of unfair subsidies provided by the American government or due to loss of quality control, or the loss of small farmers, or even a loss of Canadian production.

But that argument simply makes no sense as we already provide over 7 times the level of subsidies as the United States when it comes to supplying management and dairy, farms have been transitioning to consolidation worldwide(regardless of policy), and quality control/Canadian production could be maintained through other legal avenues/through the free market.

So why are we actually stuck in this system?

Realistically it is due to large amounts of political lobbying (over $100 million per year) aimed at every single party within the country.

This deep connection and even deeper pockets have allowed an extremely small group of people to hijack the nation’s economy for their own gains.

Today we can finally discuss this topic openly, and Donald Trump has provided us with the perfect opportunity to remove a system which has provided near to no benefits to the Canadian population while continuously disadvantaging low-income households with children.

Perhaps we should take the opportunity and free ourselves from the clutches of supply management and the lobbies which push it.

What do you think? Let us know by commenting below!

Ali Taghva

Business owner, former riding President, and Bachelors in Industrial Relations from Mcgill. Interested in the intersection of politics and culture. I firmly believe in a free media and work to push new stories to your door each day.

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