Canada’s ‘supply management’ system makes milk twice as expensive and favours affluent dairy farms

From the Fraser Institute

While the Canada-U.S. trade negotiations continue, with much speculation about potential deals, one thing is certain: Canada’s agricultural marketing boards remain a barrier to success.

A White House official said as much: “[Canada] has repeatedly demonstrated a lack of seriousness in trade discussions as it relates to removing trade barriers.” That’s a clear reference to agricultural marketing boards, our Iron Curtain trade barrier. International trade lawyer Lawrence L. Herman aptly described boards as “Canada’s Soviet-style supply management system.”

Agricultural marketing boards are as Canadian as maple syrup, but more so. Maple syrup is international. Supply management is uniquely Canadian. No other country has such a system. And for good reason. It’s odious policy, favouring an affluent few, burdening the poorest, and creating needless friction with allies and trading partners.

President Trump’s distaste for the boards is well known. But, it’s not just Donald. The European Union, the United Kingdom, the World Trade Organization (effectively all of Canada’s trading partners)—and, wait for it, the majority Canadian farmers—all oppose the boards.

Canada claims to support free trade, except when we don’t. Canada seals off a large portion of its agricultural market with the system, but gets irritable when another country closes part of its market—say for autos, aluminum or steel.

Marketing boards employ a variety of tools, including quotas and tariffs, and a large bureaucracy to block international and interprovincial trade and deprive Canadians of choice in dairy, eggs and poultry. Without competition, productivity stagnates and prices soar.

The cost of living in the United States is 8.4 per cent higher than in the Canada, rent 14.9 per cent higher. But, thanks to our marketing boards, milk is twice as expensive—C$3.07 a litre on average in Canada versus C$1.47 in the United States. The most recent estimate of the cost of the system revealed, using 2015 data, that the average Canadian household pays an extra $300 to $433 annually because of marketing boards, hitting hard poorer Canadians, who spend a higher portion of their income on food than affluent Canadians.

Martha Hall Findlay, former Liberal MP and leadership contender, now director of the University of Calgary’s School of Public Policy, wrote with outrage, “The average Canadian dairy farm’s net worth is almost $4 million…. This archaic [supply-management] system forces a single mother on welfare to pay hundreds of dollars more per year than she needs to, just so we can continue to enrich a small number of cartel millionaires… members of the oft-vilified ‘one-percent’.”

Don’t expect meaningful negotiations. Canada’s Parliament, endorsed by the Senate, recently unanimously passed Bill C-202, which prohibits the foreign affairs minister from negotiating increased quotas or reduced tariffs for imports of supply-managed products.

The dairy industry, particularly in Quebec, is the big player. To protect this mighty lobby, Bloc Québécois Leader Yves-François Blanchet proposed C-202, backed by all parties, fearing a Quebec backlash if they stood up for Canadians, including for Quebecers who lack the privilege of owning one of province’s 4,200 multi-million-dollar dairy farms of Canada’s 9,400.

The Canadian Agri-Food Trade Alliance (CAFTA), Grain Growers of Canada (GGC), and other farm groups oppose C-202. Scott Hepworth, acting chair of GGC, said, “Parliament chose to prioritize one group of farmers over another. As a grain producer, I know firsthand how important international trade is to my family’s livelihood. Without reliable access to global markets, farmers like me are left behind.”

Canada has 65,000 grain farms and 53,000 pig and beef farms, compared to 14,700 supply-managed farms, less than one per cent of the total of 190,000 farms in Canada.

Marketing boards benefit a tiny minority of Canadian farmers while damaging the majority and increasing prices for all Canadians. One benefit of Donald Trump’s trade war against Canada has been the resolve on all levels of government to reduce home-grown obstacles to growth, including iron trade curtains between provinces.

The spineless response to C-202 reveals the weakness of that resolve and politician’s willingness to bend the knee to rich lobbies, toss other farmers under the bus, and carelessly pile on costs for Canadians, particularly low-income ones.

Fred McMahon

Senior Fellow, Dr. Michael A. Walker Chair in Economic Freedom

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Local Business

Red Deer Downtown Business Association to Wind Down Operations

Published on December 10, 2025

Red Deer DBA

The Downtown Business Association (DBA) Board of Directors has made the decision to wind down the Association’s operations at the end of 2025.

The Board determined that the Association is no longer able to operate sustainably under the financial framework available for 2026. After exploring all reasonable alternatives, the Board concluded that it could not continue without reducing services to a level that would no longer provide meaningful value to levy-paying businesses.

The DBA does not receive any operating funding from City Hall in a regular year, all funds raised are through Business Improvement Area Levy that consists of a mandatory levy placed on all businesses operating within the Business Improvement Area. These funds are legislated under the Municipal
Government Act, to be used to promote the Business Improvement Area, which is achieved through marketing and event initiatives along with providing advocacy support primarily to local government on behalf of the business community.

In recent years, the DBA has been a committed advocate for re-examining the approach to Downtown Governance. The Board has consistently maintained that the responsibility for funding downtown initiatives in such a socially charged environment should not rest solely with the business community.

Despite their efforts, the DBA recognized that the funds generated through the Business Improvement Area Levy were insufficient to effectively address the growing challenges of the current operating environment. This ongoing financial strain highlighted the need for a more equitable and sustainable
model to re-establish the downtown as a safe and welcoming heart of the city.

At the annual DBA budget presentation to City Hall, the DBA requested the essential funding needed to implement the Greater Downtown Governance Committee’s recommendations — work that the DBA is uniquely positioned to lead and has been delivering despite depleting resources for many years. The request was not approved. Instead, The City offered a one-time $100,000 Grant-in-Lieu, paired with a proposed 60% increase to the Business Improvement Area levy in 2026.

After careful analysis, the Board concluded that increasing the levy would place undue strain on already challenged businesses and compromise the DBA’s role as a trusted advocate. Operating with the reduced funding of $225,000 would require further staff reductions in an already under resourced environment and a significant reduction in programs, making it impossible to deliver the level of support that downtown businesses deserve and vitally need.

Beginning January 1, 2026, the City of Red Deer will become the primary contact point for matters previously supported by the DBA, including downtown support programs, business-district coordination, events, safety and cleanliness support, and stakeholder engagement. The DBA will work with City staff to support a smooth transition.

The DBA will continue to provide Clean Team services through the delivery of the City-funded environmental contract until February 1st, 2026.

Quote from CEO, Amanda Gould:

“To our business community, we have always operated with your best interests in our heart, continually driving the vision of a thriving downtown environment that serves every member of our community. The changes ahead will have a significant impact on downtown, as there will no longer be an organization dedicated to ensuring the downtown remains top-of-mind, leading events, marketing initiatives, or advocating on your behalf. It is likely you will experience less coordinated support and collective representation.

After 13 years of service to you and our beautiful downtown, it is with great personal sadness that we find ourselves here, but our message remains clear – addressing the unique challenges of our downtown should not rest solely on your shoulders. We cannot, in good faith, collect a levy that does not enable us to provide the essential services needed for our evolving downtown landscape”.

Quote from DBA Board Chair, Brandon Bouchard:

“The incredible staff at the Downtown Business Association have consistently delivered on their mandate with outstanding dedication and effectiveness. Through their efforts, they have successfully promoted the downtown area, organized impactful marketing and event initiatives, and provided steadfast
advocacy support for the business community. Their work has extended well beyond the legislated requirements, as they have proactively responded to the evolving needs of downtown businesses, adapting to challenges and supporting operations within a complex and changing environment.

Despite the staff’s relentless commitment to positioning the DBA as an effective leader for downtown interests, the absence of a sustainable funding model has made it impossible to continue delivering meaningful support. The Board cannot, in good conscience, propose a levy that does not enable the
Association to meet the required level of service, address the shifting priorities of the business community, or respond to the continually evolving needs of the downtown”.

Agriculture

Growing Alberta’s fresh food future

Published on December 10, 2025

Government of Alberta

A new program funded by the Sustainable Canadian Agricultural Partnership will accelerate expansion in Alberta greenhouses and vertical farms.

Albertans want to keep their hard-earned money in the province and support producers by choosing locally grown, high-quality produce. The new three-year, $10-milllion Growing Greenhouses program aims to stimulate industry growth and provide fresh fruit and vegetables to Albertans throughout the year.

“Everything our ministry does is about ensuring Albertans have secure access to safe, high-quality food. We are continually working to build resilience and sustainability into our food production systems, increase opportunities for producers and processors, create jobs and feed Albertans. This new program will fund technologies that increase food production and improve energy efficiency.”

RJ Sigurdson, Minister of Agriculture and Irrigation

“Through this investment, we’re supporting Alberta’s growers and ensuring Canadians have access to fresh, locally-grown fruits and vegetables on grocery shelves year-round. This program strengthens local communities, drives innovation, and creates new opportunities for agricultural entrepreneurs, reinforcing Canada’s food system and economy.”

Heath MacDonald, federal Minister of Agriculture and Agri-Food

The Growing Greenhouses program supports the controlled environment agriculture sector with new construction or expansion improvements to existing greenhouses and vertical farms that produce food at a commercial scale. It also aligns with Alberta’s Buy Local initiative launched this year as consumers will be able to purchase more local produce all year-round.

The program was created in alignment with the needs identified by the greenhouse sector, with a goal to reduce seasonal import reliance entering fall, which increases fruit and vegetable prices.

“This program is a game-changer for Alberta’s greenhouse sector. By investing in expansion and innovation, we can grow more fresh produce year-round, reduce reliance on imports, and strengthen food security for Albertans. Our growers are ready to meet the demand with sustainable, locally grown vegetables and fruits, and this support ensures we can do so while creating new jobs and opportunities in communities across the province. We are very grateful to the Governments of Canada and Alberta for this investment in our sector and for working collaboratively with us.”

Michiel Verheul, president, Alberta Greenhouse Growers Association

Sustainable Canadian Agricultural Partnership (Sustainable CAP)

Sustainable CAP is a five-year, $3.5-billion investment by federal, provincial and territorial governments to strengthen competitiveness, innovation and resiliency in Canada’s agriculture, agri-food and agri-based products sector. This includes $1 billion in federal programs and activities and $2.5 billion that is cost-shared 60 per cent federally and 40 per cent provincially/territorially for programs that are designed and delivered by provinces and territories.

Quick facts

Alberta’s greenhouse sector ranks fourth in Canada:

195 greenhouses produce $145 million in produce and 60 per cent of them operate year-round.

Greenhouse food production is growing by 6.2 per cent annually.
Alberta imports $349 million in fresh produce annually.

The program supports sector growth by investing in renewable and efficient energy systems, advanced lighting systems, energy-saving construction, and automation and robotics systems.