Canada's supply-managed dairy policy

As dairy markets in Canada have evolved, federal and provincial dairy policies under supply management have adapted to adjust and reconcile market forces, consumer preferences, new technologies and products, financial returns, and production scale. These have not always been smooth, nor always completely successful. Indeed, the basic mechanics of supply management were not developed to address some of these issues; thus, new product demands, improvements in technology, innovation among substitute products, and changing preferences create friction in the system. This paper provides an overview and understanding of some of the challenges facing supply management in the Canadian dairy industry. It is the third in a series of papers on milk supply management by the George Morris Centre.