CHARLEBOIS: 10 myths Canadians need to stop believing about supply management
Suddenly, everyone – and their grandmother – seems to be an expert on supply management.
That newfound interest is healthy. Canadians are finally examining the benefits, costs and contradictions of a complicated system affecting roughly one-quarter of the country’s agricultural economy.
CHARLEBOIS: 10 myths Canadians need to stop believing about supply management Back to video
A generation ago, few economists openly criticized supply management. Those who did faced fierce attacks, while the dairy lobby deployed a nationwide marketing budget approaching $200 million annually. Remember the Doug Gilmour milk advertisements? Today, the “Milk” logo appears on Toronto Maple Leafs jerseys through a multimillion-dollar sponsorship.
For years, criticizing supply management was almost politically taboo. Social media has changed that. Consumers can now see milk being dumped, compare Canadian prices with those abroad and question why Ottawa repeatedly compensates a protected industry.
Dairy farmers are not the problem. They operate rationally within rules created by governments and administered by marketing boards. But those rules should not be immune from scrutiny.
Here are 10 myths Canadians should stop believing:
1. Dairy farmers are poor
Dairy farmers can be cash-constrained, but they are generally asset-rich. Once land, buildings, livestock, machinery and quota are included, many operations are worth more than $6 million. The real problem is that these inflated asset values make entering the industry almost impossible without significant family wealth or financing.
2. Supply management is........
