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Supply Management - Laurie Baker
Supply Management - Laurie Baker

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McGill University
AGRI 215
Caroline Begg Roger Cue

SUPPLY MANAGEMT Real Prices adjusted Lots of variability in prices VOLITILE - farmers need help because if they make big investment they could make large profit or large losses - stabilization, - SUPPLY MANAGEMENT Controlling supply - Supply Manage Boards, Dairy, Boiler turkey, eggs, hatching market for future egg laying birds - to 1973 unstable, after more stable - however over time the prices are falling - better for the bigger producers - control price but do NOT guarantee profit!!!! - justification of this go back to constitution - supply manage market Board - every market board is supply but not the opposite???? - Fedral gov were buying up eggs, and some how forgot where they were storing them - created political pressure to put the board in place because it looked bad - Chicken is supply managed - Imports and Exports - Farming is competitive, each farmer is small compared to market place, and price - farmer has to accept the price given to them out of the market - different than oil etc - under supply management, we have traditionally closed the door??? words of the speaker no idea… - one provence can not create more milk and push to sell in other province. NO milk pushed to US or brought from there - in milk the price is much more reg - in poultry price tends to fluxuate - why is this discrepancy? - lots of substitutes for chicken (beef etc) - not so much for milk - volatility rises as you move from farm level prices through wholesales through retail - farmer has no control over the prices - but retail does, so there is more sensitivity - all prices trending downwards - how can farmers still make money? - more pressure to get larger - farm resources go to growing large farms enjoying economies of scale - cost of production declines here, so they can afford the lowering prices Marketing board powers - liscence to manage - regulation of quality and quantity Strongest boards are Supply Management Borads The commissions have less power, they can just help adversities - Alberta Cattle Farmers Commission - if there is an overproduction we want to control that before it drives the price down - board has right to seeze the right to produce, and the producing facilities - can demand a farmer stop producing so many chickens - very strong with these rights, no agency in cash crops with same power - isn't necessarily always good, there are problems Supply Manage Boards, - regulate trade, inter provincial and inter national - much crossing boarder - fluid milk not allowed in or out, but processed product is - inter provincial problems - market share quota - allocated to each province by Canadian Dairy Board? name not sure if correct - based on historical consumption - this province produces x, so they can bla bla bla talking so fast - problems of supply management ; legislative frame works that doesn't respond to actual…. -dairy market growing, HOW TO ALLOCATE MORE QUOTA. - looking at increase in population per province - this is the argument but it is debatable - which provinces have grown, not saskatchewan - BC is growing fast, it has threatened to pull out of national board of milk production because they argue they should produce for their own people - Quebec 1976 population went down - dramatic shift in where people were - BC wanted more quota, but Quebec wasn't willing dispite the fall of population - national board gave enough to bc to keep them in the system - if they drop out of the system, then that whole part of the market disappears - reducing the need to ship Quebecs product out there - if BC satisfied there own, there would be a ripple effect felt all the way to Quebec - farming by not feeding in the winter 90% OF NEW Zealand is seasonal - potential ripple effect to consume
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