Class Notes (784,364)
Canada (481,129)
AGRI 215 (10)
Lecture

Supply Management - Laurie Baker
Supply Management - Laurie Baker

4 Pages
69 Views
Unlock Document

School
McGill University
Department
Agriculture
Course
AGRI 215
Professor
Caroline Begg Roger Cue
Semester
Fall

Description
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
More Less

Related notes for AGRI 215

Log In


OR

Don't have an account?

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


OR

By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.

Submit