This article supplied by Troy Media.

By Sylvain Charlebois

A new bill shielding dairy, poultry and eggs from trade negotiations sends the wrong message to global partners and punishes Canadian consumers

Last week, the House of Commons unanimously approved Bill C-202, a law that would prohibit Canada from making any trade concessions
involving its supply-managed sectors, including dairy, poultry and eggs.

The bill now moves to the Senate for final approval. With unanimous support, the House is reinforcing a decades-old protectionist system just as Canada faces mounting pressure to modernize its economy and re-establish credibility as a global trading partner.

Introduced initially as Bill C-282 by the Bloc Québécois in the last Parliament, Bill C-202 grants blanket immunity to supply-managed sectors, most notably dairy, regardless of the negotiating partner or economic context. With its approval in the House, Parliament has already sent a clear signal: this system is off-limits, no matter the cost.

Canada’s approach to supply management and trade keeps circling back to the same policy mistakes—protecting an outdated system whose relevance is increasingly hard to justify.

Supply management, a system that controls domestic production through quotas, guarantees prices for farmers and restricts imports with high tariffs, especially in dairy, poultry and eggs, was introduced decades ago to stabilize farm incomes and ensure domestic supply. But today, it’s more about shielding entrenched interests than serving consumers or the broader economy.

During the federal election campaign, Prime Minister Mark Carney stated in a Radio-Canada interview that no legislation was necessary to protect the dairy industry. It appears he has since changed his mind, or someone changed it for him.

While the prime minister’s shift signals executive backing, not everyone is convinced. The Senate may still push back, as some senators have raised
concerns about the bill’s long-term economic consequences. But the political momentum is unmistakable: protectionism is once again being presented as national interest.

In Ottawa, few MPs from any party challenge one of the most powerful lobby groups in the country: the Dairy Farmers of Canada. Their influence is
formidable, both federally and provincially. Despite this outsized influence, it’s worth asking: what exactly are we protecting?

Canada has the highest industrial milk prices in the G7. A litre of milk in Canada can cost up to twice as much as it does in the U.S.—an added burden for families already struggling with inflation and rising grocery bills.

These elevated prices don’t drive innovation or reinvestment. Many producers are content to maintain the status quo, insulated from competition. The result? Consumers pay more while the industry resists efficiency and change.

Defenders of supply management often point to food safety. It’s true that bovine growth hormones are banned here. That’s commendable.

But other practices deserve more scrutiny. A 2022 study published in Trends in Food Science and Technology found that palm oil derivatives are permitted in feed for Canadian dairy cows. This may help explain the firmer, less spreadable butter observed at room temperature—a phenomenon dubbed “Buttergate,” which was initially dismissed by dairy farmers despite growing evidence.

More recently, a peer-reviewed study co-authored by researchers at McGill and Dalhousie universities estimated that Canada discards between 600 million and one billion litres of milk annually. The dairy lobby rejected the findings but has yet to present alternative data.

The reality is simple: cows don’t stop producing milk when demand dips, so waste is inevitable.

Rather than engage critics or offer transparency, the dairy sector leans on silence and self-congratulation. Reform is taboo. This unwillingness to confront hard truths at home has international consequences.

Looking ahead, Canada will need to renegotiate trade deals with the United States, Mexico and other partners.

Trade negotiations with countries like the U.S., our largest trading partner, require flexibility and credibility. Shielding entire sectors from negotiation signals that we are unwilling to deal in good faith.

Two choices await: we either pay billions in compensation to dairy farmers every time we offer concessions, a practice that borders on economic racketeering, or we forfeit our standing as a credible trade partner.

What message does this send to the world at a time when Canada urgently needs to diversify its economy?

By clinging to a politically convenient system, our elected officials are rewarding complacency and institutionalizing inefficiency, all under the guise of defending national interests.

The more things change, the more they stay the same.

Dr. Sylvain Charlebois is a Canadian professor and researcher in food distribution and policy. He is senior director of the Agri-Food Analytics Lab at Dalhousie University and co-host of The Food Professor Podcast. He is frequently cited in the media for his insights on food prices, agricultural trends, and the global food supply chain.

Troy Media empowers Canadian community news outlets by providing independent, insightful analysis and commentary. Our mission is to support local media in helping Canadians stay informed and engaged by delivering reliable content that strengthens community connections and deepens understanding across the country.

This article supplied by Troy Media.

By Sylvain Charlebois

Canadian beef prices have surged due to a shrinking cattle herd, high transportation costs, and potential market collusion

With summer weather settling in, Canadians are returning to a familiar ritual—ring up the barbecue. But as they approach the meat counter, many are faced with shockingly high prices. This year, the meat aisle has become a case study in supply-side economics and market dysfunction, leaving
consumers to wonder how this all came to be.

Since January, according to Statistics Canada, beef prices have surged dramatically. Striploin is up 34.2 per cent, top sirloin 33.7 per cent, and rib cuts nearly 12 per cent. Pork rib cuts and chicken breasts have each risen 5.9 per cent, while even meatless burger patties are 6.8 per cent more
expensive. Beef has led the way in these increases, and its dominance in the price hikes is striking. What’s particularly concerning is that it’s not just one cut of beef—virtually every option has seen a dramatic jump, putting pressure on Canadian consumers who were already grappling with rising food costs.

The cause behind these increases lies in Canada’s shrinking beef cow inventory, now at just 3.38 million head—the lowest since 1989. This represents a 1.2 per cent drop from last year, but it signals much more than a cyclical decline. Many cattle producers, facing an increasingly volatile market, are choosing to exit the industry while prices are favourable. Others are opting to reinvest in less risky sectors or even shift entirely to crop production, leaving the beef industry in a precarious state. In short, Canada’s beef industry is retreating, and with that retreat comes rising prices, fewer available cattle, and growing uncertainty.

South of the border, the U.S. is seeing a similar trend, but far less severe. According to the United States Department of Agriculture, the
American beef cow herd declined by just 0.5 per cent to 27.9 million head. This relatively modest drop, coupled with less disruption in their production practices, has resulted in more stable prices.

Over the past year, U.S. boneless sirloin steak rose 5.7 per cent, compared to a staggering 22 per cent in Canada. Ground beef saw a 10.8 per cent increase in the U.S., but 23 per cent in Canada. The price difference between the two countries is stark, and Canadians are feeling the inflationary pressure much more acutely.

There are several factors contributing to the price hikes: Canada’s vast geography, high transportation costs, a limited number of federally licensed beef processors, carbon pricing, and higher labour costs. Carbon pricing, in particular, has added a burden to sectors like beef production, where transportation costs are high. Regulations and logistical inefficiencies add to the costs, driving up prices for retailers and, ultimately, consumers.

This combination of factors is having a compounding effect on the price of beef, making it increasingly out of reach for many.

But there’s another possibility we can’t ignore: potential collusion within the industry. In Canada, a small number of large processors control much of the beef supply, which gives them significant influence over prices. The U.S. government has taken strong action against price-fixing among major meat packers like JBS, Tyson Foods, Cargill, and National Beef, leading to multimillion-dollar settlements. In Canada, however, the Competition Bureau has remained largely silent on similar concerns, allowing the possibility of price-fixing to persist unchecked. Perhaps it’s time for Canada to follow the U.S. lead and ensure the beef industry is held accountable for its actions.

The consequences of these rising costs are already evident. According to IBISWorld, Canadian per capita beef consumption fell by 7.1 per cent in 2023 and is expected to drop another 2.1 per cent in 2024. This isn’t merely a shift in dietary preferences—this is a structural change in consumer behaviour. Beef is becoming increasingly viewed as a luxury item, with many budget-conscious households turning to ground beef as a more affordable option. For many Canadians, beef is no longer a staple food but rather an occasional indulgence, reserved for special occasions or holiday meals.

This shift is unfortunate. Beef remains one of the most natural, sustainable sources of protein available to Canadians. Ranchers and processors have made significant strides in improving environmental stewardship, animal welfare, and food safety, often without recognition. Beef is not only nutritionally dense but also supports rural economies and provides a level of traceability few other protein sources can offer.

For many Canadian families, a summer steak on the grill is becoming more of a splurge than a staple. While Canadians will continue to enjoy beef, the frequency and volume of consumption will likely diminish.

Barbecue season hasn’t disappeared, but for many, it’s starting to look a little different: more sausages, more chicken, and fewer striploins. A shame, really, for a product that offers so much more than just taste.

Dr. Sylvain Charlebois is a Canadian professor and researcher in food distribution and policy. He is senior director of the Agri-Food Analytics Lab at Dalhousie University and co-host of The Food Professor Podcast. He is frequently cited in the media for his insights on food prices, agricultural trends, and the global food supply chain.

Troy Media empowers Canadian community news outlets by providing independent, insightful analysis and commentary. Our mission is to support local media in helping Canadians stay informed and engaged by delivering reliable content that strengthens community connections and deepens understanding across the country.