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

From the Fraser Institute
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.
Author:
Agriculture
Canada Greenlights Mass Culling of 400 Research Ostriches Despite Full Recovery from Bird Flu Months Ago

Nicolas Hulscher, MPH
Federal court upholds CFIA’s reckless cull order—setting a dangerous precedent for the unscientific mass depopulation of genetically important animals.
In March, I interviewed Katie Pasitney of Universal Ostrich and Connie Shields to discuss the alarming implications of the Canadian Food Inspection Agency (CFIA) order to cull 400 research ostriches at Universal Ostrich Farm in British Columbia over bird flu:
Canada Orders Mass Culling of 400 Research Ostriches Over Bird Flu, Refuses to Test Surviving Birds for Natural Immunity
·The Canadian Food Inspection Agency (CFIA) has ordered the culling of 400 ostriches at Universal Ostrich Farm in British Columbia, citing concerns over H5N1 bird flu. However, this decision is not based on sound science and could have serious consequences for both food security and medical research.
Universal Ostrich Farm is a research facility focused on studying the unique antibody-producing capabilities of ostriches. Their research has demonstrated potential in neutralizing viruses, bacteria, and even COVID-19, making it an important contribution to medical science.
In December 2024, the CFIA claimed that two deceased ostriches—which had been lying outside for over 16 hours—tested positive for H5N1 via PCR testing. Just 41 minutes after receiving these results, the CFIA signed an order to cull the entire flock.
The CFIA initially granted the farm an exemption, recognizing the birds as “genetically important.” Later, without clear justification, they reversed this decision, ordering their destruction.
Despite the importance of this research, the CFIA has refused to conduct further testing on the birds and has banned the farm from conducting its own tests, under threat of heavy fines and possible imprisonment. Why is the Canadian government refusing to study the potential antibodies ostriches have developed against H5N1 bird flu?
On January 31, 2025, a court granted a temporary stay of execution, halting the cull. However, the CFIA is appealing this decision, which means the culling could still proceed.
Today, we have received news that the reckless mass cull order will proceed despite their ostriches having already recovered months ago and developed natural immunity against H5N1:

Official Announcement: Federal Court Decision in Universal Ostrich Farms Inc. v. Canadian Food Inspection Agency
Dear friends and supporters,
We are absolutely devastated to share today’s Federal Court decision, issued on May 13, 2025. The court ruled in favour of the Canadian Food Inspection Agency (CFIA), upholding their order to destroy our beloved ostriches and rejecting our plea to save them.
The court’s decision accepted the CFIA’s justification under the Health of Animals Act and their use of the Stamping-Out Policy, which mandates the destruction of animals to control disease outbreaks, regardless of their health status. The court confirmed the CFIA’s approach, prioritizing trade obligations over the welfare of our animals.
In addition, we’ve been ordered to pay $15,000 in CFIA’s legal costs. You can read the full decision here: (2025 FC 878). https://saveourostriches.com/wp-content/uploads/2025/05/JR-T-294-25-and-T-432-25-Final.pdf
We are heartbroken by this outcome and uncertain about the future of our farm. As we navigate this incredibly difficult time, we ask for your patience and continued support. If you are able, please consider making a donation to help us manage the financial and emotional toll this has taken.
Thank you,
Universal Ostrich Farm
http://SaveOurOstriches.com
This deeply misguided decision sets a dangerous precedent for the Canadian government to recklessly depopulate animals at will.
By upholding the CFIA’s reckless cull order, despite the ostriches’ recovery and natural immunity, the court has prioritized trade protocols over scientific inquiry, animal welfare, and the advancement of life-saving medical research.
Epidemiologist and Foundation Administrator, McCullough Foundation
www.mcculloughfnd.org
Please consider following both the McCullough Foundation and my personal account on X (formerly Twitter) for further content.
Agriculture
Canada is missing out on the global milk boom

This article supplied by Troy Media.
By Sylvain Charlebois
With world demand soaring, Canada’s dairy system keeps milk producers locked out of growth, and consumers stuck with high prices
Prime Minister Mark Carney is no Justin Trudeau. While the team around him may be familiar, the tone has clearly shifted. His first week in office signalled a more data-driven, technocratic approach, grounded in pragmatism rather than ideology. That’s welcome news, especially for Canada’s agri-food sector, which has long been overlooked.
Historically, the Liberal party has governed with an urban-centric lens, often sidelining agriculture. That must change. Carney’s pledge to eliminate all interprovincial trade barriers by July 1 was encouraging but whether this includes long-standing obstacles in the agri-food sector remains to be seen. Supply-managed sectors, particularly dairy, remain heavily protected by a tangle of provincially administered quotas (part of Canada’s supply management system, which controls prices and limits production through quotas and tariffs to protect domestic producers). These measures stifle innovation, limit flexibility and distort national productivity.
Consider dairy. Quebec produces nearly 40 per cent of Canada’s milk, despite accounting for just over 20 per cent of the population. This regional imbalance undermines one of supply management’s original promises: preserving dairy farms across the country. Yet protectionism hasn’t preserved diversity—it has accelerated consolidation.
In reality, the number of dairy farms continues to decline, with roughly 90 per cent now concentrated in just a few provinces. On our current path, Canada is projected to lose nearly half of its remaining dairy farms by 2030. Consolidation disproportionately benefits Quebec and Ontario at the expense of smaller producers in the Prairies and Atlantic Canada.
Carney must put dairy reform back on the table, regardless of campaign promises. The sector represents just one per cent of Canada’s GDP, yet
wields outsized influence on policy, benefiting fewer than 9,000 farms out of more than 175,000 nationwide. This is not sustainable. Many Canadian producers are eager to grow, trade and compete globally but are held back by a system designed to insulate rather than enable.
It’s also time to decouple dairy from poultry and eggs. Though also supply managed, those sectors operate with far more vertical integration and
competitiveness. Industrial milk prices in Canada are nearly double those in the United States, undermining both our domestic processors and consumer affordability. These high prices don’t just affect farmers—they directly impact Canadian consumers, who pay more for milk, cheese and other dairy products than many of their international counterparts.
The upcoming renegotiation of CUSMA—the Canada-United States-Mexico Agreement, which replaced NAFTA—is a chance to reset. Rather than resist change, the dairy sector should seize the opportunity to modernize. This includes exploring a more open quota system for export markets. Reforms could also involve a complete overhaul of the Canadian Dairy Commission to increase transparency around pricing. Canadians deserve to know how much milk is wasted each year—estimated at up to a billion litres—and whether a strategic reserve for powdered milk, much like our existing butter reserve, would better serve national food security.
Global milk demand is rising. According to The Dairy News, the world could face a shortage of 30 million tonnes by 2030, three times Canada’s current annual production. Yet under current policy, Canada is not positioned to contribute meaningfully to meeting that demand. The domestic focus on protecting margins and internal price fairness is blinding the sector to broader market realities.
We’ve been here before. The last time CUSMA was renegotiated, Canada offered modest concessions to foreign competitors and then overcompensated its dairy sector for hypothetical losses. This created an overcapitalized industry, inflated farmland prices and diverted attention from more pressing trade and diplomacy challenges, particularly with India and China. This time must be different: structural reform—not compensation—should be the goal.
If Carney is serious about rebooting the Canadian economy, agri-food must be part of the conversation. But that also means the agriculture sector must engage. Industry voices across the country need to call on dairy to evolve, embrace change and step into the 21st century.
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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