Since its introduction in 1971, supply management has ensured that Canadian poultry, egg and dairy farmers have the ability to produce high quality products for Canadian consumers. The main focus of supply management is a simple one: to keep dairy products local and ensure that supply equals demand.
Supply management functions on three pillars:
Using a quota system, producers can ensure that a steady supply of quality products are available to meet consumer demand.
Canada’s federal government has committed to limit imports to ensure Canadian dairy market requirements are primarily met by Canadian milk production. However, there is a 10% tariff-free market for exporters into Canada. In 2016, Canada was in a trade deficit with the United States. During the year, Canada imported $558M of US dairy, while the United States imported only $112M of Canadian dairy.
Dairy producers receive prices that provide a reasonable return, which enable producers to cover production costs. Our producers do not rely on taxpayer subsidies.
Overall, supply management ensures that the milk you buy at your grocery store is locally produced and adheres to the strict Canadian guidelines of milk production. ALL milk in Canada is hormone and antibiotic free. For more information, click here.