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Ottawa may soon pass ‘supply management’ law to effectively maintain inflated dairy prices

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6 minute read

From the Fraser Institute

By Jerome Gessaroli

Many Canadians today face an unsettling reality. While Canada has long been known as a land of plenty, rising living costs and food insecurity are becoming increasingly common concerns. And a piece of federal legislation—which may soon become law—threatens to make the situation even worse.

According to Statistics Canada, rising prices are now “greatly affecting” nearly half of Canadians who are subsequently struggling to cover basic living costs. Even more alarming, 53 per cent are worried about feeding their families. For policymakers, few national priorities are more pressing than the ability of Canadians to feed themselves.

Between 2020 and 2023, food prices surged by 24 per cent, outpacing the overall inflation rate of 15 per cent. Over the past year, more than one million people visited Ontario food banks—a 25 per cent increase from the previous year.

Amid this crisis, a recent academic report highlighted an unforgivable waste. Since 2012, Canada’s dairy system has discarded 6.8 billion litres of milk—worth about $15 billion. This is not just mismanagement, it’s a policy failure. And inexcusably, the federal government knows how to address rising prices on key food staples but instead turns a blind eye.

Canada’s dairy sector operates under a “supply management” system that controls production through quotas and restricts imports via tariffs. Marketing boards work within this system to manage distribution and set the prices farmers receive. Together, these mechanisms effectively limit competition from both domestic and foreign producers.

This rigid regulated system suppresses competition and efficiency—both are essential for lower prices. Hardest hit are low-income Canadians as they spend a greater share of their income on essentials such as groceries. One estimate ranks Canada as having the sixth-highest milk prices worldwide.

The price gap between the United States and Canada for one litre of milk is around C$1.57. A simple calculation shows that if we could reduce the price gap by half, to $0.79, Canadians would save nearly $1.9 billion annually. And eliminating the price gap would save a family of four $360 a year. There would be further savings if the government also liberalized markets for other dairy products such as cheese, butter and yogurt. These lower costs would make a real difference for millions of Canadians.

Which brings us back to the legislation pending on Parliament Hill. Instead of addressing the high food costs, Ottawa is moving in the opposite direction. Bill C-282, sponsored by the Bloc Quebecois, has passed the House of Commons and is now before the Senate. If enacted, it would stop Canadian trade negotiators from letting other countries sell more supply-managed products in Canada as part of any future trade deal, effectively increasing protection for Canadian industries and creating another legal barrier to reform. While the governing Liberals hold ultimate responsibility for this bill, all parties to some degree support it.

Supply management is already causing trade friction. The U.S. and New Zealand have filed disputes (under the Canada-United States-Mexico Agreement and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership) accusing Canada of failing to meet its commitments on dairy products. If Canada is found in violation, it could face tariffs or other trade restrictions in unrelated sectors. Dairy was also a sticking point in negotiations with the United Kingdom, leading the British to suspend talks on a free trade deal. The costs of defending supply management could ripple farther than agriculture, hurting other Canadian businesses and driving up consumer costs.

Dairy farmers, of course, have invested heavily in the system, and change could be financially painful. Industry groups including the Dairy Farmers of Canada carry significant political influence, especially in Ontario and Quebec, making it politically costly for any party to propose reforms. The concerns of farmers are valid and must be addressed—but they should not stand in the way of opening up these heavily regulated agricultural sectors. With reasonable financial assistance, a gradual transition could ease the burden. After all, New Zealand, with just 5 million people, managed to deregulate its dairy sector and now exports 95 per cent of its milk to 130 countries. There’s no reason Canada could not do something similar.

Bill C-282 is a flawed piece of legislation. Supply management already hurts the most vulnerable Canadians and is the root cause of two trade disputes that threaten harm to other Canadian industries. If passed, this law will further tie the government’s hands in negotiating future free trade agreements. So, who benefits from it? Certainly not Canadians struggling with food insecurity. The government’s refusal to modernize an outdated inefficient system forces Canadians to pay more for basic food staples. If we continue down this path, the economic damage could spread to other sectors, leaving Canadians to bear an ever-increasing financial burden.

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Agriculture

Health Canada pauses plan to sell unlabeled cloned meat

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From LifeSiteNews

By Clare Marie Merkowsky

Health Canada has indefinitely paused its plan to allow unlabeled cloned meat in grocery stores after thousands of Canadians, prominent figures, and industry leaders condemned the move.

Health Canada is pausing its plan to put unlabeled cloned meat in Canadian grocery stores, following public outcry.

In a November 19 update on its website, Health Canada announced an indefinite suspension of the decision to remove labels from cloned meat products after thousands of Canadians condemned the plan online.

“The Government of Canada has received significant input from both consumers and industry about the implications of this potential policy update,” the publication read. “The Department has therefore indefinitely paused the policy update to provide time for further discussions and consideration,” it continued, adding, “Until the policy is updated, foods made from cloned cattle and swine will remain subject to the novel food assessment.”

In late October, Health Canada quietly approved removing labels from foods derived from somatic cell nuclear transfer (SCNT) clones and their offspring. As a result, Canadians buying meat from the grocery store would have had no way of knowing if the product was cloned meat.

Many researchers have documented high rates of cloning failure, large offspring syndrome (LOS), placental abnormalities, early death, and organ defects in cloned animals. The animals are also administered heavy doses of antibiotics due to infections and immune issues.

Typically, the offspring of cloned animals, rather than the cloned animals themselves, are processed for human consumption. As a result, researchers allege that the health defects and high drug use does not affect the final product.

However, there are no comprehensive human studies on the effects of eating cloned meat, meaning that the side-effects for humans are unknown.

News of the plan spread quickly on social media, with thousands of Canadians condemning the plan and promising to switch to local meat providers.

“By authorizing the sale of meat from cloned animals without mandatory labeling or a formal public announcement, Health Canada risks repeating a familiar and costly failure in risk communication. Deeply disappointing,” food policy expert and professor at Dalhousie University Sylvain Charlebois wrote on X.

Likewise, Conservative MP Leslyn Lewis warned, “Health Canada recently decided that meat from cloned animals and their offspring no longer needs a special review or any form of disclosure.”

“That means, soon you could buy beef or pork and have no idea how it was bred,” she continued. “Other countries debate this openly: the EU has considered strict labelling, and even the U.S. has admitted that cloned-offspring meat is circulating.”

“But here in Canada, the public wasn’t even told. This is about informed choice,” Lewis declared. “If government and industry don’t have to tell us when meat comes from cloned animals, then Canadians need to ask a simple, honest question: What else are we not being told?”

Likewise, duBreton, a leading North American supplier of organic pork based out of Quebec, denounced the move, saying, “Canadians expect clarity, transparency, and meaningful consultation on issues that directly touch their food supply. As producers, we consider it our responsibility and believe our governing food authorities should too.”

According to a survey conducted by duBreton, 74 percent of Canadians believe that “cloned meat and genetic editing practices have no place in farm and food systems.”

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Agriculture

Federal cabinet calls for Canadian bank used primarily by white farmers to be more diverse

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From LifeSiteNews

By Anthony Murdoch

A finance department review suggested women, youth, Indigenous, LGBTQ, Black and racialized entrepreneurs are underserved by Farm Credit Canada.

The Cabinet of Prime Minister Mark Carney said in a note that a Canadian Crown bank mostly used by farmers is too “white” and not diverse enough in its lending to “traditionally underrepresented groups” such as LGBT minorities.

Farm Credit Canada Regina, in Saskatchewan, is used by thousands of farmers, yet federal cabinet overseers claim its loan portfolio needs greater diversity.

The finance department note, which aims to make amendments to the Farm Credit Canada Act, claims that agriculture is “predominantly older white men.”

Proposed changes to the Act mean the government will mandate “regular legislative reviews to ensure alignment with the needs of the agriculture and agri-food sector.”

“Farm operators are predominantly older white men and farm families tend to have higher average incomes compared to all Canadians,” the note reads.

“Traditionally underrepresented groups such as women, youth, Indigenous, LGBTQ, and Black and racialized entrepreneurs may particularly benefit from regular legislative reviews to better enable Farm Credit Canada to align its activities with their specific needs.”

The text includes no legal amendment, and the finance department did not say why it was brought forward or who asked for the changes.

Canadian census data shows that there are only 590,710 farmers and their families, a number that keeps going down. The average farmer is a 55-year-old male and predominantly Christian, either Catholic or from the United Church.

Data shows that 6.9 percent of farmers are immigrants, with about 3.7 percent being “from racialized groups.”

Historically, most farmers in Canada are multi-generational descendants of Christian/Catholic Europeans who came to Canada in the mid to late 1800s, mainly from the United Kingdom, Ireland, Ukraine, Russia, Italy, Poland, the Netherlands, Germany, and France.

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