In the midst of an affordable crisis, much focus has been placed on housing and fuel prices, but conservative potential leaders have also contributed to rising living costs in Canada’s supply management system. , Says you need to finish.
“For years, Canadian bread makers have colluded to raise their prices. When the Competition Bureau caught them, they had to compensate Canadians. To the Government of Canada. Has its own price manipulation system, which is called supply management and also inflates grocery bills, “said Conservative Rep. Scott Hisson on April 20. video..
According to Aitchison, the system keeps supplies low and imposes “penalties on imported goods,” so prices remain artificially high.
Supply control was implemented under the Pierre Trudeau administration in the 1970s to address price volatility and fluctuations in farmers’ incomes and regulate the production of dairy products, eggs and poultry.
The market is tightly controlled and farmers need to buy “allocations” to sell their products. Allocations allow them to produce up to a set amount, pushing down prices and preventing market excesses that negatively impact farm income.
Quotas were initially free, but have gained high market value over the years.National Diet Library Research paper The estimated total quota was $ 36.9 billion in 2017, compared to $ 14.7 billion in 1998.
Assignments vary by state. For example, set up an average-sized dairy farm. This is about 96 cows. according to To Canadian Dairy — About $ in Ontario2.3 million Just to get a government production permit (96 multiplied by an average quota of $ 24,000).
Aitchison states that the high cost of entering the business is the reason why small farms are declining these days. When supply control was implemented, Canada had 100,000 dairy farms, but now it is less than 11,000.
Parry Sound-Muskoka’s equestrian MP wants to open the market to foreign players and increase overseas sales to Canadian farmers.
“I’m ending supply controls to help Canadian families suffering from grocery invoices and high inflation. I’m stuck in a system that limits my ability to grow, compete and sell around the world. We do that to help our farmers, “he said.
inflation
Inflation continued to be in the red at 6.7% in March, rising due to supply-controlled items in the basket of commodities that make up the consumer price index.
Statistics Canada report Dairy and egg prices rose 8.5% year-on-year in March, the largest increase since February 1983. Butter prices rose 16%, cheese rose 10.4%, and raw milk rose 7.7%.
This is partly due to the fact that the Canadian Dairy Commission (CDC), which is responsible for managing supply controls, raised the price of gated milk on farms by 8.4% in February.
CDC had publication The hike last October “partially offset the increase in production costs due to the COVID-19 pandemic, offsetting revenues that remained below production costs. Feed, energy and fertilizer costs. I’m particularly influenced. “
Supply politics
Pierre Poirievre, a Conservative MP and leadership race front runner working on “freedom” and an inflation prevention platform, said he favored “more choice and freedom in the agricultural sector,” he said. It will not abolish supply control.
Poilievre Said The reason for the Western Standard in March is that farmers had to pay millions of dollars to get a quota.
“Furthermore, if we bring them [supply management controls] Then it would be more costly to do it than to maintain the current system, “he said.
Poilievre instead considered tax cuts and simplification of regulations to increase sector productivity.
The issue of supply control was also addressed in the 2017 Conservative Leadership Race. Current People’s Party leader Maxim Bernier was the leading candidate, but his attitude towards supply control sacrificed him competition, Evaluated Kevin O’Leary, who was also a candidate before dropping out at that time.
Supply chain advocate Andrew Shear has won. A Canadian dairy farmer (DFC), a briefing binder found at the 2018 Conservative Party Conference in Halifax, called Cheer a “safety net” for removing supply management from party policy.
“The power of leaders is widespread to prevent the existence of policies in the party platform. DFC from the Leaders Office, he exercises this power, and this policy is the result of the convention. I was told that it wouldn’t be in a conservative election platform regardless, “said Binder’s photo text. Post According to Twitter journalist Keean Bexte.
Scheer officially threw his support behind Poilievre in the current leadership contest.
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Noé Charter is a Montreal-based Epoch Times reporter.