For those not familiar with Canada's crazy system, farmers must own milk quotas in order to be able to sell milk beyond the farm gate, and this is very aggressively enforced. Quota prices are extraordinarily high; currently $24,000 CAD/cow in Ontario and Quebec, $36,500 CAD/cow in BC, up to around $44,000/cow in Alberta. The effect of this is that even opening a small hobby farm is impossible without huge investments (e.g., the upfront cost just to buy just the quotas, not the land or the cows, for a small 100 cow venture in Ontario is $2.4 million).
At one time long ago, this system was billed as protecting the family farm, but in practice now it drives the death of family farms, as people with quotas slowly sell out to large producers and new farmers cannot enter the marketplace because of the quota cost wall.
Cheese quality, price, and availability in Canada is absolutely pathetic compared to any European country, the US, or Australia and New Zealand, and we are usually several years behind on product innovations present in other countries such as ultrafiltered, lactose free, grassfed, and A2 milk.
> The cost of supporting farmers is borne by those who buy the farmers' products.
This should be true of any product, but you don’t need to take out a million dollar loan to purchase the quota from existing producers in order to raise cattle, grow blueberries, or produce sugar beets. All those industries are fine and supported by their consumers.
The EU, US, and AU all subsidize; NZ is not subsidized IIRC.
AFAICT, if you want to get rid of supply management, and have a domestic industry, then we'll have to have subsidies.
> This should be true of any product, but you don’t need to take out a million dollar loan to purchase the quota from existing producers in order to raise cattle, grow blueberries, or produce sugar beets. All those industries are fine and supported by their consumers.
The US is literally dumping milk from overproduction:
* https://www.cnn.com/2019/08/22/politics/pfas-water-chemicals
* https://www.wsj.com/articles/americas-dairy-farmers-dump-43-...
What do you think will happen to our (Canadian) farmers if we all US market dumping?
Not all product segments are the same, even with-in the agriculture sector.
If having autarkic dairy production is important for some reason, limiting opportunities for local producers to enter the market is a weird way of achieving it.
That doesn’t address the failure of current policy to encourage or even allow dynamic domestic production of this category of commodities to meet consumer demand.
The government has given no penalties to farmers polluting the environment over the last 20 years, every change in government there's a slow push to have some sort of payment for what's been done, but the it changes again and all progress evaporates. The farmers who originally wreaked havoc on the land are retired now. Putting penalties in place now would just be penalizing their kids, investors or those who joined the farming boom in this country from the 90s.
New Zealand is also a massive hotspot for testing new technology in farms. Speak to any dairy farmer here, they'll likely have some sort of regular cadence with overseas companies (usually Israel or Canada) to discuss product changes, management or updates to software or reporting, etc. But nearly none of the technology innovation happen in the country itself - as soon as development shows promise, it's acquired or relocated somewhere else leaving.
With the price of land in New Zealand reaching all time highs as New Zealand continues to make no progress in reducing the amount of investment in land - I think farming as a profession will continue to push towards intensification just as it has been over the last 20 years. Land is expensive, they need returns to justify the investment. Around, and around we go until the land is a toxic slurry.
[0] https://theconversation.com/polluted-drained-and-drying-out-...
Liberalizing the dairy system is not just about "cheap" dairy either, it's about enabling people to make a relatively independent living outside cities, and provide high quality and diversified products to supply food to their regions. This is what supply management prevents.
Also, the point of a market for something people want is that it doesn't need subsidies or have quotas. There is literally no legitimate benefit the quota system provides that could not be handled by import tariffs instead. That is, to actually enforce borders and markets instead of hollowing them out with globalized and dumped products from countries with abusive labour practices and other corrupt subsidies.
Not only this, but the monopoly has has compromised our political processes to where it manipulates party processes. It's laughably corrupt and is an example of what makes Canada seem like a write-off economy in its other sectors as well.
For raw milk, it is illegal in plenty of places (Nordics, Scotland, England requires license, Australia):
* https://en.wikipedia.org/wiki/Raw_milk#Legal_status
As for supply management, the first question to ask is: does Canada want a domestic dairy industry? If the answer is "yes", then it becomes "how will it be supported?"
Because both the US [0][1] and EU [2] subsidize their dairy farmers out of general tax revenues: tax dollars are being sent to them regardless of whether you drink milk or not (lactose intolerant, vegans).
In Canada's supply management system, dairy prices are higher, but if you're not a dairy consumer, you don't pay anything. The cost of supporting farmers is borne by those who buy the farmers' products.
If we Canadians want "cheap" dairy, we can have it: but let's not fool ourselves that it will not come with some kind of cost.
* https://en.wikipedia.org/wiki/Agricultural_subsidy
[0] https://www.bloomberg.com/news/articles/2020-04-02/farmers-a...
[1] https://www.washingtonpost.com/opinions/2019/06/12/best-way-...
[2] https://www.politico.eu/article/eus-milk-scramble-for-africa...