Our marketing system, supply management, is often misunderstood as it is often portrayed as a very complex and complicated system; however, it really isn’t.It simply is about keeping our food local in Canada. Instead of shipping large quantities of dairy products across the world (which with the perishable nature of milk would make it very challenging), our three pillars strive to make sure that our farmers produce what Canadians need.
Three Pillars of Supply Management
There are three pillars of supply management that ensure that our system works effectively.
1. PRODUCTION MANAGEMENT
Using a quota system, producers can ensure that a steady supply of quality products are available to meet consumer demand.
2. PREDICTABLE IMPORTS
Canada’s federal government has committed to limit imports to ensure Canadian dairy market requirements are primarily met by Canadian milk production.
3. PRICING MECHANISM
Dairy producers receive prices that provide a reasonable return, which enable producers to cover production costs. Our producers do not rely on taxpayer subsidies.