Results for Hashtag #supplymanagement

  • Heather Albritton posted a new activity comment 4 months, 1 week ago

    In reply to: Ken Cunningham posted an update #supply management http://www.macleans.ca/economy/economicanalysis/why-your-milk-costs-so-much-in-canada/ For anyone who has an interest in this subject[ confess it's pretty much […] View

    Ken, I went back and had a look under #supplymanagement and found the discussions of 6-7 months ago including Lloyd’s and many other commentators listed there with enough links on dairy and related trade matters to keep me reading for quite sometime while I endeavor to catch up . This also avoids the necessity of having this information reposted.

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    • Heather, Concentration of commodities will happen, with or without SM. Present day, scale of operations in the agro business, will shed the little guy, which SM most beneficented.
      So there does need to be a discussion on the way forward.
      How do we keep diversification of ownership in commodities and agricultural lands?
      Do we want, or how can we…[Read more]

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      • The EU and the US heavily subsidise their farmers. Canada has to atop regulating supply and start subsidising farmers up to a ceiling based on farm gate sales per farmer that makes sense in Canada.
        There is more than one way to skin a cat. Every one of us are dependent on productive farmers and every one of us has a responsibility to ensure that…[Read more]

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  • #supplymanagement

    Just to note: there’s a lot of talk today about grain shipments – or rather the lack thereof etc.

    Has anyone else noticed this? On a trip to Ontario from Edmonton last November, i was surprised at long lines of tank cars at every elevator siding – yes – literally every elevator siding i saw – from Edmonton to Winnipeg -…[Read more]

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    • Ralph Goodale, on CBC, explained the Raitt response of ordering rail companies to move an amount of grain that they already had been ordered to move but had considered the order to be elective by them. In other words no action or obligation change on the part of rail corporations. The prospect for an improved view from your air plane window looks…[Read more]

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    • This is a very serious situation which is only going to get worse. As usual, no govt. action when it was needed.

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  • #supplymanagement
    When it comes to farmers, the U.S. is a veritable nanny state:
    New U.S. Farm Bill coddles farmers, ignores Canada’s plea

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    • Before diving into “farm subsidies”, one would be well advised to examine who benefits from them. For example the USDA Crop Loan Program loans money to farmers to hold their crop till prices rise. At harvest time prices dive in response to the oversupply. Ergo, farmers sell for better prices, tax payers lose on the interest, banks benefit on the…[Read more]

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  • Oops. I accidently deleted the recent post on #supplymanagement in the poultry sector and the promo video produced by the Chicken Farmers of Canada. For those interested, here is the link again. Canadian Chicken: A good choice for Canada & Canadians.: http://youtu.be/tnUqwgCw3-o via @youtube

    Also my apologies to Patricia Beurteaux on deleting…[Read more]

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    • In response to Patricia’s comment … In British Columbia, over 90% of the farms are family-owned businesses. Mostly small farms by international standards. The dairy industry is no different, although in the Canadian context, you will likely categorize dairy farms as “medium” size businesses. The average size of a milking herd is 135 with an…[Read more]

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      • Actually, in Ontario you need at least 35 cows to sustain a comfortable family dairy farm. The average size in Ontario is around 70 cows.

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    • What an excellent chicken farmers of canada video. We need to nip in the bud this neo-liberal conservative agenda. I would recommend everyone to send this video link to everyone’s contacts. Replace chicken with milk and you have a perfect dairy video.

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    • Peter: SM provides an idealized market where producers and consumers agree to ask and offer a particular amount of money for (in this case milk) for the term of their contract. All issues, including the reasonableness of prices for the commodity and cost of production are examined in the open. SM has been shown to be stable (“security”) and…[Read more]

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  • Stephen Glass posted an update 11 months ago

    #supplymanagement – It seems to me the fact that milk quota has sky-rocketed in value to the point where it is worth more than the value of the dairy farm property, is all the evidence you need to know that it is a huge distortion to the market value of dairy. I agree that nations need to negotiate collectively stepping down all the hidden…[Read more]

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    • The reason the quota’s value outstripped the real estate is that it was permitted to be sold on the open market and the big guys were happy to pay anything for it. Much of the quota is no longer in the hands of the family farm model. The mixing of the quota, a market protection tool, with the selling-off into the free market seems to me to have…[Read more]

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    • The same thing happened out here on the West Coast where fish license quota’s became so valuable they became the commodity. Someone wanting to start up fishing had to buy a quota and eventually only a few individuals or corporations had the means to secure a market share. Subsidizing farm production around the world by creating monopolistic…[Read more]

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    • Do you have any data on milk quotas. Wondering if they leveled off or declined in the last year with the talk of ending SM.

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      • I have no recent information on milk quota values. My uncle was a dairy farmer (in business at inception of quota) – he sold his quota for more than the farm. Appears values skyrocketed at an annual rate of 12% so a cap at $25K/unit was imposed…I don’t know if the cap is still in place. See:…[Read more]

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    • The value of quota sky-rocketed, not mainly because of larger domestic farms competing, but mainly because of european farmers that immigrated to Canada because they lost their quota system! They certainly competed heavily in the quota exchanges, buying farms and building new barns.

      It’s pretty hard to compete with immigrant farmers that bring…[Read more]

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    • Value of quota has NOT outstripped real estate. Actually, almost a majority of condo’s and house’s in Toronto are well over the value of quota holdings of the majority of small dairy farms.

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  • #supplymanagement
    Recently Martha Hall Findlay posted an article in the Globe and Mail. This article is nothing more than a smokescreen to shill for the dairy processors and retailers who simply can’t make enough money by gouging consumers.

    The average CDN dairy producer receives between 70-75 cents per litre. Hall-Findlay points to a system…[Read more]

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    • Hi Leo:
      Indeed, Ms. MHF was sharply rebuked by scholars of SM for her cherry picking of numbers when she failed to appreciate the value and import of Canadian SM. When NZ and AUS ended SM , safe, affordable and stable price milk ended with them http://www.cirano.qc.ca/pdf/publication/2011DT-01.pdf. What little I know of the current CETA, it is…[Read more]

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      • “…but it does have an advantage in post production pricing, aided and abetted by those ”mighty” subsidies which will not be paid by EU but by taxes or taxes in kind leveled levelled against the Canadian middle class to compensate ”victims of CETA” by THG”

        Lloyd could you expand on this concept of our m/c consumer picking up the tab for their…[Read more]

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        • Hi Ken: You ask the most interesting questions. Look for all comments by Mr. Harper and premiers who assure Canadians that those who lose business, opportunity, profits, etc. as a consequence of CETA will be compensated by the federal government. That’s you, because cutting corporate taxes increases your taxes or changes their labels to fees for…[Read more]

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          • You don’t accept the logic then that we lose on the cheese but win big on say beef or something else[oil?] that will now get easier to sell to a larger market?
            The dumping really bothers me. I’m a European and know well the damage EU agri subs have wreaked…butter, wine and pork beef lakes and mountains, some of which gets destroyed or dumped…[Read more]

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            • Hi again Ken: I accept logic wherever I find it. In your question, beef to EU is logical because of all meat animals, cows are the least efficient in converting feed and fodder into meat. Ergo, they need hectares of land to feed them, albeit, low grade fodder. EU does not have hectares to spare. Beef trade is a win win situation. The idea that…[Read more]

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    • I’m in no way contradicting you[ it's great to hear the other side of the story. There being far too many MHF's running around over- simplifying the SM debate] But doesn’t this deal actually reduce tariffs and create potential access to the EU for our better cheeses? [ although i’m pessimistic we can make much of an inroad into traditionally…[Read more]

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      • Ken: It’s your country as much as it is mine. Do feel free to contradict. There are no dumb questions but there are plenty of dumb answers like “We need to eliminate SM “cause it works to the benefit of consumers and against -wealth creation.” In the long run happy, healthy Canadians are a benefit to all of us. I could get richer by investing…[Read more]

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        • That one was for /Leo actually. But thanks anyway Lloyd.

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          • Sorry Ken, been away from this a while…not sure what I’m supposed to respond to….however, regardless which way you look at this in terms of agriculture, there are not many wins for us – possibly in the long term if beef producers actually follow european standards – however, the elephant in the room will always be the U.S. What I fear most is a…[Read more]

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  • #supplymanagement
    The Globe article by Martha Hall Findlay provides us with interesting facts about newly signed CETA agreement. She focuses her attention on the fact that additional 17,000 tons of cheese will be allowed tariffs free to be imported into Canada from EU. It turns out that this amounts to 3.5% of cheese Canadians consume yearly. To…[Read more]

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    • I like the fact that we are discussing SM in its present-day form but I do hope we don’t throw out the baby and bathwater together. At a time when many are looking for products that have a smaller environmental footprint, importing our food, in particular, might demonstrate that we have misread the times. Although I see many would love the…[Read more]

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    • It may work out alright for Canada. That waits to be seen. The 3.5% figure though is of the whole cheese market. The coming cheese will not be “pizza cheese”. It will be the high end cheese. What % of the market will that be? Will it mean cheaper cheese just for the rich folks? Will cheesmakers have to switch overhead costs to cheaper…[Read more]

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      • All are good questions. I would assume that Canadian beef and pork farmers done some research prior to pushing it as a topic of CETA negotiations. It’s interesting than in Europe a lot of people presume that we, Canadians have advantages in beef and pork production and they are afraid that they won’t be able to compete with our farmers.
        I saw…[Read more]

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        • Jarek: In fact, Canadians do have a locational advantage over Europeans for beef production; the land base for quality and quantity of feed and fodder. We also have a supply of new immigrants and foreign temp.’s to produce and process boxed beef. Don’t look for a Euro-windfall for Canadian beef because Brazil and Australia have locational…[Read more]

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      • Bill: Indeed, we do not have the CETA text to debate national advantages in detail. We do have enough credible information to debate general points: Canadian beef to EU makes sense, because Canada has land, sparse in Europe, for production of huge amounts of feed and fodder necessary for the inefficient cattle to convert to meat. Ergo, win-win. On…[Read more]

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    • Hmm. I kind of don’t want to live in a country where all we care about–to the exclusion of absolutely everything else–is the very cheapest sticker price. Because the price on the sticker so often doesn’t reflect the true cost; to the environment, to the standard of living of our fellow citizens, to a non-abusive and civil society.

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    • The Americans use subsidies to reduce the price to the consumer, while increasing farm incomes. Canada uses quotas to limit the supply, raise the price to consumers, while increasing farm incomes. Both approaches increase farm incomes and ensure basic food supply security. One difference is that taxpayers at large subsidize farm incomes in the…[Read more]

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      • You seem to argue that lower incomes pay relatively more for food. I ask, without a stable supply how can we be assured that we can afford something this week and next week.

        The poor live week to week, the average price will not help them as much as someone that has savings.

        Stable supply brings stable prices, see OPEC if in doubt.

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        • What I was saying was that you can ensure security of supply by using either supply management (quotas) or subsidies. Subsidies result in lower prices which help poorer people; supply management raises prices.

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          • Subsidies do not necessarily reduce prices, but do help the producer stay in business.

            Supply and demand have a bigger affect on prices.

            The way that supply management increases prices is the start up costs, the costs of the quota. This should have some controls.

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      • Peter: Your conclusions are at odds with Maurice Doyon; professor and pork chair at Laval who concluded a peer reviewed history and international comparison of milk production and supply systems. In New Zealand [p 50] and Australia where MS was replaced by subsidies prices rose significantly, as did price instability. In subsidy loving US,…[Read more]

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        • Hi, Lloyd,
          Thanks for your comment.
          I gather we don’t disagree that both systems ensure security of supply and boost farm incomes. We also don’t appear to disagree that retail prices in the U.S. are lower than retail prices in Canada. Your points about actual costs may well be accurate. In Canada consumers pay the difference between actual costs…[Read more]

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          • Hi Peter:
            Thanks for the cordial reply and the introduction. My own experiences with PET, were less consistently positive. To reward myself for dreariness of labour and loneliness of thought in editing thousands of pages, in half dozen publications by an interdisciplinary team surveying human and natural resources north of Edmonton, I practiced…[Read more]

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    • I am not a big fan of supply management. The fishing industry went to quotas and a few fortunate people got rich just owning the quota and renting or selling it. The fish industry still went down the tubes with artificially inflated rights for a few to fish. Even with quotas there remained over capacity problems with resources sitting idle for…[Read more]

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  • Hugh Ferguson posted an update 12 months ago

    #constantcampaign, #supplymanagement
    Has anyone been following the Conservative Party’s new ‘Consumer First’ agenda? It smacks of re-election strategy. First, they attack the wireless companies (pretty daring since those same companies own the newspapers, or it was an orchestrated publicity stunt – Verizon and their imminent threat are gone);…[Read more]

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    • http://www2.macleans.ca/2013/09/25/the-senate-canadas-most-honourable-think-tank/

      I’ll post a couple of links that i think are relevant. This is an issue we should discuss as it pertains to our strategy to come.

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      • http://www2.macleans.ca/2013/09/25/adult-fitness-tax-break-could-cost-286m-over-five-years-budget-watchdog/

        I’d really like to see the party eventually signal a direction on these little boutique tax credits that Harper has helped clutter up the tax code with. Clearly many of them fall into the zone of bribery with our own tax. As importantly…[Read more]

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        • Ken: Good points. Methinks you are referring to discretionary income; the part of the gross that you can decide fully on how to invest. Disposable is after tax that you can spend to acquire life’s necessities like food, shelter, clothing, transportation, etc. That distinction allows you to honestly say Mr. Harper is giving tax breaks to the rich…[Read more]

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          • As this segues into tax policy I should point out that in today’s national post, they started talking about reducing tariffs on certain goods (i.e. hockey equipment) or extending existing reduction in tariffs. This achieves two dangerous things: 1) it is effectively a bribe to voters to make them think the CPC is actually working in their best…[Read more]

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            • Hugh: … and 3. The rent-a bureaucrat hiring policy gives them incredible control over what is done by folks whose allegiance they own, as well as extraordinary payroll flexibility. An alternate government will be hamstrung in any attempt to nationalize services gone usurious, shoddy or incompatible with national interests; short of invoking a…[Read more]

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          • thx Lloyd. An economist i am not.

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            • Ken: You’re welcome. Incidentally, The late Mr. Sereda was an economist, of note. I just know enough math to understand econometrics. I’m a retired interdisciplinary community development specialist who appreciates people who can think, irrespective of jargon.

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  • Jarek Walter posted an update 12 months ago

    #supplymanagement
    Number of months ago we have got into a heated discussion on this forum about Canadian supply management system and Mr. Doyon work done in this area.
    Today, National Post published this article: http://fullcomment.nationalpost.com/2013/09/26/jesse-kline-the-statists-guide-to-supply-management/. Below you will find a quote from…[Read more]

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    • Yet with supply management, we haven’t had any Soviet-style lining up for milk — not even the slightest *hint* of shortages in all the time supply management has been in place. You came from the USSR to Canada and were able to purchase all kinds of supply-managed goods without any hint of the kinds of line-ups you experienced in the USSR. So this…[Read more]

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      • Perhaps you missed this story: http://news.nationalpost.com/2013/09/19/newfoundland-reeling-over-tinned-cream-shortage-that-retailers-blame-on-strict-dairy-supply-management-laws/

        This is not butter or 1% milk, but supply management is not good at supplying specialty markets.

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        • No. I didn’t miss that item. That particular question should be dealt with on its own merits — but it is separate from other supply management issues, and it remains to be demonstrated that supply management *in principle as opposed to its implementation in specific cases such as this specialty cream item* can in any way whatsoever be justifiably…[Read more]

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          • Communists also continue to argue that it remains to be demonstrated that Marxism in principle, as opposed to its implementation in specific cases, does not work.

            People may not be aware of supply management specifically, but everyone who has ever crossed the US border to buy milk, eggs or poultry is aware of its effects on price.

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            • That’s an ad hominem argument, and irrelevant. That this particular observation was made in defence of communism is irrelevant to other cases.

              There are many cases that in principle work but don’t in certain circumstances, and vice versa. Any discussion should stick to the material arguments relevant to the case at hand.

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              • An ad hominem argument would be one which attacks you personally, and I don’t believe I have.
                I was attempting to show, by way of example, that if something works in theory but not in practice, then it doesn’t work.

                The facts are that while supply management benefits a small number of dairy, egg and poultry producers through higher and more…[Read more]

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                • It doesn’t have to be directed at me. In this case you were using a variety of ad hominem combined with a false analogy. You and the first poster are emulating the National Post writer by avoiding dealing with the relevant question (supply management alone and using the diversionary tactic of associating it and its proponents with Marxist central…[Read more]

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        • Supply management deters dairy farmers from expanding to meet local demand due to the very high cost of buying a milk selling quota . It deters small farmers from producing more than a few eggs and forces the consumer to buy often stale eggs from large grocers . It keeps the price of chicken high at the supermarkets and prevents the farmer…[Read more]

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      • Christopher, it wasn’t my intention to present my personal experience from the Soviet era as a argument in the discussion about merits of the SMS. It was simply a reflection related to the quoted paragraph from the article.
        In the past we discussed the topic of SMS in details, based on factual arguments, opinions and reports.

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    • Maybe the dialogue should be changed to having a secure food supply. Should we have a one year supply of grain in storage for a rainy day. When grain prices are low we the people or we the government could or should buy up sufficient to avoid a food crisis ?

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    • Jarek: I would not quibble if I did not think it important: For your information, Doyon is Dr. Doyon; It is Klein of the Post, who is Mr. Klein. Accordingly, there are two competitive definition of economics: study of (1) how we earn a living and (2) how we create wealth for some. It should be noted that wealth can (and is) created by replacing…[Read more]

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  • #supplymanagement The average herd size for a dairy farm in BC is 135 cows plus an equal number of replacement calves & heifers. In New Zealand it’s 500. Perhaps #supplymanagment should be viewed as a tool that enables families to continue farming and to earn a decent living while doing so. Without #supplymanagement, I would be concerned that…[Read more]

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    • #supplymanagement
      The statistics call for a careful evaluation before drawing conclusions. The average heard size for dairy farm in BC was 93.7 in 1998, 119.7 in 2005 and now (2012) is 139.7. The existence of the supply management didn’t prevent consolidation and transfers of quotas from smaller farm to bigger ones. At the same time, the average…[Read more]

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      • Thanks Jarek. I certainly agree that statistics are a valuable tool for analysis. Supply management was never intended to be an entitlement to protection but rather, was implemented to solve the challenges of low returns and stable pricing. The elimination is SM would likely result in significant financial injury to the sector and interestingly,…[Read more]

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    • Excellent point Peter: In his extensive and peer reviewed study, Maurice Doyon describes the end of New Zealand’s supply management. The largest (NZ) producers banded together into an essential vertically integrated monopoly. The retail milk price doubled and none but the factory farms survived. It should be noted Doyon was conservative in his…[Read more]

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    • We have one dairy farm left in the north of 7 area of our County, and it is a small, about 40 cow, operation. All the other small operators have folded. This one operation which also has a few hundred beef cows, keeps a lot of other farms in the area functioning. The end of quota would wipe out this dairy operation and most small family dairy…[Read more]

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  • Jarek Walter posted a new activity comment 1 year, 1 month ago

    In reply to: Peter Donkers posted an update #supplymanagement The average herd size for a dairy farm in BC is 135 cows plus an equal number of replacement calves & heifers. In New Zealand it’s 500. Perhaps #supplymanagment […] View

    #supplymanagement
    The statistics call for a careful evaluation before drawing conclusions. The average heard size for dairy farm in BC was 93.7 in 1998, 119.7 in 2005 and now (2012) is 139.7. The existence of the supply management didn’t prevent consolidation and transfers of quotas from smaller farm to bigger ones. At the same time, the average…[Read more]

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    • Thanks Jarek. I certainly agree that statistics are a valuable tool for analysis. Supply management was never intended to be an entitlement to protection but rather, was implemented to solve the challenges of low returns and stable pricing. The elimination is SM would likely result in significant financial injury to the sector and interestingly,…[Read more]

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  • Jarek Walter posted a new activity comment 1 year, 1 month ago

    In reply to: Jarek Walter posted an update #agriculture #policy Another reflection on the last Wednesday’s telephone Townhall with Bob Rae. One of the callers placed the question: what was Bob’s position on the supply […] View

    #supplymanagement
    Yes, I think we should not assume that the only solution is to discard it. The problem is that we treat it as a sacred cow. Any talks about modifying or adjusting it are assumed to be an attack on the system.

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    • Jack,
      I don’t want to labour this discussion – but do you not think we’d end up in a similar situation (oligopoly) if we eliminated the SMS – in fact i’d be surprised if we didn’t see even greater concentration and greater producer surplus going to the new agricultural trusts, probably none of which would be Canadian owned anymore.

      I think we…[Read more]

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  • Jarek Walter posted a new activity comment 1 year, 1 month ago

    In reply to: Jarek Walter posted an update #agriculture #policy Another reflection on the last Wednesday’s telephone Townhall with Bob Rae. One of the callers placed the question: what was Bob’s position on the supply […] View

    #supplymanagement
    Forty years since the SMS was legislated iin Canada is long time. It’s true that industry changed during this time and there is no comparison to the time when 135,000 family dairy farms required some kind of protection. Today’s 12,000 Canadian dairy farmers benefit from the monopoly offered by the SMS while those who want to…[Read more]

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    • Doesn’t that mean we should just fix or update it, rather than just discard it?

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      • #supplymanagement
        Yes, I think we should not assume that the only solution is to discard it. The problem is that we treat it as a sacred cow. Any talks about modifying or adjusting it are assumed to be an attack on the system.

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        • Jack,
          I don’t want to labour this discussion – but do you not think we’d end up in a similar situation (oligopoly) if we eliminated the SMS – in fact i’d be surprised if we didn’t see even greater concentration and greater producer surplus going to the new agricultural trusts, probably none of which would be Canadian owned anymore.

          I think we…[Read more]

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  • #supplymanagement Walter The limited number of dairys in Canada is due to the large dairies like Dairyland,then Dairyworld and now Saputo buying up the smaller dairies. When I am In the supermarket in the US there is a bigger selection of Cambell soups, jello and salad dressings. There is a bigger and different selection in many areas. Therefore…[Read more]

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    • I don’t think that Saputo owns milk quota or cows.

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      • Bill: I believe you are right re. Saputo. Still, Lucerne (associated with Safeway), does own means of production. There is clearly a move by corporation-oriented lobbyists to convert Canadian agriculture into a limited number of factory farms. The current ”farmers” would become piece workers for those factory farms.

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        • Couldn’t find anything about Lucerne milking cows either (in Canada anyway.
          Regarding working for a factory farm, nearly all farmers say they are in it for the lifestyle. That can be satisfied by working for a factory farm. Surely you wouldn’t have to work any harder and you would have no start up costs, a steady income, a company vehicle,…[Read more]

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          • Bill: Apparently I overestimated Lucerne’s degree of vertical integration. They may or may not milk cows but they do milk farmers; in their own words: “…a group of dairy farmers in the San Joaquin Valley of California banded together to form a cooperative they called the Lucerne Cream and Butter Company, and built a little plant in Hanford,…[Read more]

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          • Bill, I have several farmers in my extended family who own family farms. Family farm lifestyle is totally opposite factory farm operations and none of those farming families would agree with your comments. What kind of farmers would appreciate the perspective you included? I hope this was tongue in cheek.

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            • There are two sides to every issue and my wife will tell you that I always take an opposite view so I have to confess that my remarks were tongue in cheek. Actually I don’t know enough about farming that anyone should take my remarks seriously.
              That being said, I do realize that farmers in general abhor working for factory farms. However you…[Read more]

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      • #supplymanagement
        It wasn’t wise for me to assume that milk production equals cows ownership :-). It looks that Saputo doesn’t own any farms. I’m puzzled by the Google search for “Saputo Dairy Farms Canada” which brings multiple results (mostly job offers on Saputo farms. Strange.
        Anyway, Saputo position on the Supply Management System and…[Read more]

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    • #supplymanagement
      We have to look at underlying reasons trying to figure out why there is such a small selection of dairy products in Canada comparing to the US (not mentioning Europe). It’s a fact that consolidation is occurring and small dairies are disappearing by being acquired by bigger players. I’m sure that all those acquisitions are…[Read more]

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    • How free is free enterprise? Seems the prize is to get the biggest market share possible and squeeze out all the smaller businesses that may not have the economies of scale larger enterprises have. Is this good for the consumer when we restrict productivity and competition? We have a government bureaucracy that is supposed to ensure…[Read more]

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      • Peter: There is a big hole in Canadian grain marketing for producers and buyers. For more details, chat with Ralph Goodale. He’s approachable. The boards oversee a forward contract for a specific commodity. There is an arbitrage between producers and consumers and supply, demand, cost of production, etc. are considered. Try George Morris, as…[Read more]

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    • With all respect, the comparison of supermarket selection in vastly different markets, not to mention countries, is not useful. I think we forget just how different the two countries are.

      If we are to discuss and re-examine SM, we have to look at ourselves first. The two questions in my mind deal with value; that is, the value to farmers (and…[Read more]

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  • Jarek Walter posted a new activity comment 1 year, 1 month ago

    In reply to: jan polderman posted an update #supplymanagement Walter The limited number of dairys in Canada is due to the large dairies like Dairyland,then Dairyworld and now Saputo buying up the smaller dairies. When I am […] View

    #supplymanagement
    It wasn’t wise for me to assume that milk production equals cows ownership :-). It looks that Saputo doesn’t own any farms. I’m puzzled by the Google search for “Saputo Dairy Farms Canada” which brings multiple results (mostly job offers on Saputo farms. Strange.
    Anyway, Saputo position on the Supply Management System and…[Read more]

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  • Jarek Walter posted a new activity comment 1 year, 1 month ago

    In reply to: jan polderman posted an update #supplymanagement Walter The limited number of dairys in Canada is due to the large dairies like Dairyland,then Dairyworld and now Saputo buying up the smaller dairies. When I am […] View

    #supplymanagement
    We have to look at underlying reasons trying to figure out why there is such a small selection of dairy products in Canada comparing to the US (not mentioning Europe). It’s a fact that consolidation is occurring and small dairies are disappearing by being acquired by bigger players. I’m sure that all those acquisitions are…[Read more]

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  • Jarek Walter posted a new activity comment 1 year, 1 month ago

    In reply to: jan polderman posted an update While we are talking about supply side management this discussion should include subsidies and the limited number of dairies in Canada. View

    #supplymanagement
    I agree – all aspect of the SMS should be included in the discussion. Limited number of dairies in Canada is a direct result of milk allocation to them. We have to keep in mind, that SMS regulates production of milk (among poultry and eggs production) and a distribution system of those products as well. Any dairy needs to apply…[Read more]

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  • #supplymanagement
    This legislation was enacted over 20 years ago and if nothing else, needs an overhaul that reflects the changes between then and now.

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    • #supplymanagement
      To be precise, the Canadian Dairy Commision Act was passed in 1966 by the Canadian Government. The SMS came into effect in the 1970s. It’s almost 40 years old. Forty years brought fundamental changes to the Canadian economy for sure. Agriculture sector wasn’t an exception. Since 1971, the number of Canadian dairy farms has…[Read more]

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      • Well, it would be interesting to see how many younger members of the families just didn’t go into farming – most in my generation didn’t. As well, back in the day, your farm might be identified as `dairy’ by the Ag Dept but, in fact, you also had other lines of income. In my experience, it has not been uncommon to see farmers move into meat…[Read more]

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    • Christopher: did you have something particular in mind in as much as boards are required to review as a matter of course. Two problems were identified by some ag econs (UA, UBC, e.g.): 1. provinces allow off board trading, resulting in the worst of all worlds, rather than the best, 2. quota prices were set in the free-for-all markets and then…[Read more]

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  • #supplymanagement
    “…many experts counter that Canada has all the competitive advantages to be a food-export colossus – if only it would overhaul supply management. Economist Colin Carter, director of agricultural economics at the University of California-Davis and an expert on global commodities markets, has made the case that Canada is…[Read more]

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    • I’m not seeing where the Dairy Farmers of Canada is saying that:

      `The Dairy Farmers of Canada, which speaks for the country’s roughly 12,700 dairy farms, rejects the notion that supply management is to blame for the industry’s inefficiency. Instead, it argues that Canada is saddled with a small population base and much higher costs because it…[Read more]

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      • #supplymanagement
        Patricia, I would like to elaborate on your statement ”Add to that the fact that not supporting medium to smaller size producers leaves the field open to conglomerates”.
        I’m afraid that is already happening. The farms operating under the SMS consist only 7.5% all all farms in Canada (17,203 out of 229,373 in 2006) and are the…[Read more]

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        • Jarek,
          If the free-for-all was so good why did it fail us before? What makes you think that if we abandon SM all the problems we saw in the 70’s will not happen again. Why would we want to fix something which is not broken.

          SM is no less efficient and than the free-for-all you propose. With pricing and market access reasonably assured,…[Read more]

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        • Jarek: SMS farming is typically full time. A significant proportion of farming in Canada is part time, where the majority of operator’s income is from off farm sources. A growing amount of farming activity is by hobbyists, who are motivated by rural life style. All types of farming contribute to a singular goal of stable, safe and affordable…[Read more]

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      • Patricia: The problem with “SMS busters” is they compare apples and oranges: When Martha Hall Findlay compared a price of a gallon of milk in U.S. and Canada, she priced the former as a gallon purchase and the latter as a summation of a glass purchase times enough glasses for an imperial gallon. Similarly, OECD found a subsidy that Canadian…[Read more]

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