The Canadian Milk Supply Management Committee, chaired by the Canadian Dairy Commission, a Crown corporation created in 1966,6 is responsible for the administration of supply management for the dairy industry.7 The Farm Products Agencies Act also established the National Farm Products Marketing Council, which became the Farm Products Council of Canada8 in 2009. [...] This federal body oversees the various agencies in an effort to promote an efficient and competitive agricultural sector while ensuring that the marketing system operates well, in the interests of producers and consumers.9 To be effective, the national supply management system must follow the three basic rules that are its pillars: • production control; • pricing mechanism; and • import control. [...] In the dairy industry, sales are negotiated not in terms of litres of milk, but in terms of daily kilograms of butterfat produced, the equivalent of one cow’s production,12 whereas in the poultry industry, quota is sold by units produced or square metres of floor space. [...] The standard composition of a hectolitre of milk with 3.6 kg of butterfat is 103.2 kg of milk (see Government of Canada, Statistics of the Canadian Dairy Industry, 2012). [...] For 60 cows, the quota is 60 kg, and the quota price in Quebec is $25,000 per kg (see the following paragraph in the text), a total of $1.5 million.
- Pages
- 12
- Published in
- Ottawa, Ontario
