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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

Danish Cows Collapsing Under Mandatory Methane-Reducing Additive

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Sonia Elijah investigates

Sonia Elijah's avatar Sonia Elijah

Cow feed additive Bovaer meant to curb climate change seems to be killing some Danish dairy cows

Since October 1, 2025, when many Danish dairy farmers began incorporating the synthetic additive Bovaer (containing 3-nitrooxypropanol) into their cows’ feed—alarming reports have come in of animals suffering from: stomach cramps, fevers, miscarriages, drastic drops in milk production, sudden collapses and in some cases, the need to be euthanized.

In the shocking video below, Danish farmer Rene Lillehjælper discusses how her husband is driving their “cow ambulance” tractor— transporting yet another collapsed cow from their dairy farm—because of the “Bovaer Poison.”

Marketed as a “climate-friendly” methane reducer, this product—produced by the Dutch-Swiss giant DSM-Firmenich—became a legal requirement for Danish dairy farmers to add into their animal feed for 80 days or for their cows to be fed extra fat throughout the year.

Notably, farmers experimenting by removing Bovaer saw their herds recover rapidly, only for symptoms to return upon reintroduction. Yet, despite these red flags, authorities insist on pushing ahead, with an investigation only now underway.

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These reports build on the concerns I outlined in my November 2024 investigation into Arla’s UK trials, where EFSA tolerance studies highlighted issues such as reduced feed intake, decreased organ weights (including ovaries and heart), and altered enzyme levels in cows at elevated doses—yet these effects were ultimately classified as “non-adverse” by regulators.

BREAKING: Methane-Reducing Feed Additive Trialled in Arla Dairy Farms

·
November 28, 2024
BREAKING: Methane-Reducing Feed Additive Trialled in Arla Dairy Farms

On November 26th, Arla Foods Ltd. announced via social media their collaboration with major UK supermarkets like Tesco, Aldi, and Morrisons to trial Bovaer, a feed additive, aiming to reduce methane …

What was even more troubling were the findings from my analysis of the safety assessment report, prepared by the UK’s Food Standards Agency (FSA) and Food Standards Scotland (FSS), reviewed by Animal Feed and Feed Additives Joint Expert Group (AFFAJEG) and the Advisory Committee on Animal Feedingstuffs (ACAF).

It stated: “In relation to safety studies for the consumer, a 2-year carcinogenicity study in Wistar rats showed “mesenchymal cell tumours were reported in 4 out of 49 females at the top dose of 300 mg/kg bw/day of 3-NOP given orally. Based on these results, the original study report concluded there was evidence of carcinogenicity in female rats.”

AFFAJEG noted potential for mesenchymal cell hyperplasia and benign tumours at high doses but, citing no malignant tumours or genotoxicity, concluded the additive is not carcinogenic at recommended inclusion rates.

ACAF echoed that the additive “can be considered safe for consumers.” Yet, their conclusion was seemingly contradicted by the following statement: The additive should be considered corrosive to the eyes, a skin irritant and potentially harmful by inhalation.”

In a separate development, a May 2024 FDA letter addressed to Elanco US, Inc, (which has an agreement with DSM-Firmenich to market Bovaer) stated: “Based on a review of your data and the characteristics of your product, FDA has no questions at this time regarding whether Bovaer® 10 will achieve its intended effect and is expected to pose low risk to humans or animals under the conditions of its intended use.”

Ironically, the FDA letter included an attachment with the following warning:

It should be noted that Bovaer passed the FDA review in under 12 months—much shorter than industry standard.

Kjartan Poulsen, chairman of the National Association of Danish Dairy Producers, has received numerous calls from concerned farmers. “We have so many people who call us and are unhappy about what is happening in their herds,” he shared with TV 2.

He described the recurring issues as unusual and is urging reports of suspected Bovaer-linked miscarriages. Poulsen emphasized that any animal harm undermines the additive’s purpose: “This should give a climate effect – and if cows die from this, or they produce less milk, then the effect is minus.” He is calling for a temporary pause from Agriculture Minister Jacob Jensen and for farmers to cease use if welfare issues arise.

Approved by the European Commission in 2022 based on EFSA assessments, Bovaer was deemed safe for cows, consumers, and the environment, with claims of up to 30-45% methane reduction.

However, field experiences differ. Reports from Jyllands-Posten and TV 2 describe lower milk yields tied to miscarriages, plus collapses—some cows recovering with treatment but others needing to be euthanised.

Earlier whispers from Danish farmers included fevers, diarrhoea, mastitis, and even cow deaths attributed to Bovaer. One producer lost six animals in under a month. Critics label it “animal cruelty,” especially under mandatory use for farms with over 50 cows.

The Danish Veterinary and Food Administration acknowledges these reports and has enlisted Aarhus University to analyse real-world data, with initial findings expected after the 2025-26 new year.

The irony is stark: a product meant to “save the planet” for reducing methane is harmful to dairy herds, slashing productivity, and raising fears of contaminating the food chain—despite assurances it “breaks down fully” with no residues.

Yet, the true winners emerge clearly: DSM-Firmenich, cashing in on booming sales fuelled by mandates and climate subsidies, alongside powerhouse investors like BlackRock (holding ~3.3%) and Vanguard, who reap the rewards from this relentless Net-Zero drive.

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Agriculture

Cloned foods are coming to a grocer near you

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This article supplied by Troy Media.

Troy MediaBy Sylvain Charlebois

And you may never find out if Health Canada gets its way

Cloned-animal foods could soon enter Canada’s food supply with no labels identifying them as cloned and no warning to consumers—a move that risks public trust.

According to Health Canada’s own consultation documents, Ottawa intends to remove foods derived from cloned animals from its “novel foods” list, the process that requires a pre-market safety review and public disclosure. Health Canada defines “novel
foods” as products that haven’t been commonly consumed before or that use new production processes requiring extra safety checks.

From a regulatory standpoint, this looks like an efficiency measure. From a consumer-trust standpoint, it’s a miscalculation.

Health Canada argues that cloned animals and their offspring are indistinguishable from conventional ones, so they should be treated the same. The problem isn’t the science—it’s the silence. Canadians are not being told that the rules for a controversial technology are about to change. No press release, no public statement, just a quiet update on a government website most citizens will never read.

Cloning in agriculture means producing an exact genetic copy of an animal, usually for breeding purposes. The clones themselves rarely end up on dinner plates, but their offspring do, showing up in everyday products such as beef, milk or pork. The benefits are indirect: steadier production, fewer losses from disease or more uniform quality.

But consumers see no gain at checkout. Cloning is expensive and brings no visible improvement in taste, nutrition or price.
Shoppers could one day buy steak from the offspring of a cloned cow without any way of knowing, and still pay the same, if not more, for it.

Without labels identifying cloned origin, potential efficiencies stay hidden upstream. When products born from new technologies are mixed with conventional ones, consumers lose their ability to differentiate, reward innovation or make an informed choice. In the end, the industry keeps the savings while shoppers see none.

And it isn’t only shoppers left in the dark. Exporters could soon pay the price too. Canada exports billions in beef and pork annually, including to the EU. If cloned origin products enter the supply chain without labelling, Canadian exporters could face additional scrutiny or restrictions in markets where cloning is not accepted. A regulatory shortcut at home could quickly become a market barrier abroad.

This debate comes at a time when public trust in Canada’s food system is already fragile. A 2023 survey by the Canadian Centre for Food Integrity found that only 36 per cent of Canadians believe the food industry is “heading in the right direction,” and fewer than half trust government regulators to be transparent.

Inserting cloned foods quietly into the supply without disclosure would only deepen that skepticism.

This is exactly how Canada became trapped in the endless genetically modified organism (GMO) debate. Two decades ago, regulators and companies quietly introduced a complex technology without giving consumers the chance to understand it. By denying transparency, they also denied trust. The result was years of confusion, suspicion and polarization that persist today.

Transparency shouldn’t be optional in a democracy that prides itself on science based regulation. Even if the food is safe, and current evidence suggests it is, Canadians deserve to know how what they eat is produced.

The irony is that this change could have been handled responsibly. Small gestures like a brief notice, an explanatory Q&A or a commitment to review labelling once international consensus emerges would have shown respect for the public and preserved confidence in our food system.

Instead, Ottawa risks repeating an old mistake: mistaking regulatory efficiency for good governance. At a time when consumer trust in food pricing, corporate ethics and government oversight is already fragile, the last thing Canada needs is another quiet policy that feels like a secret.

Cloning may not change the look or taste of what’s on your plate, but how it gets there should still matter.

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.

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