Supply management bill goes straight to Senate

Glacier FarmMedia — The Bloc Quebecois wasted no time returning a generally contentious matter to the parliamentary agenda, introducing a invoice to guard provide administration simply days after the primary session of the brand new authorities started.

Celebration chief Yves-Francois Blanchet launched Invoice C-202 Might 29, and on June 5 it was despatched to the Senate with none debate. It follows Invoice C-282 within the final Parliament and C-216 within the one earlier than that. Neither of these payments made it absolutely via the parliamentary course of.

The invoice would amend the Division of International Affairs, Commerce and Improvement Act to guard provide managed industries in future commerce negotiations. Exporters don’t like that concept, whereas provide administration proponents say they’ve given up sufficient.

Blanchet stated he promised through the marketing campaign to introduce the invoice as a result of you will need to Quebec’s economic system and reminded MPs that every one political events say they assist provide administration.

“As soon as once more, I word that all the political events within the Home have indicated that they may assist this initiative. I subsequently hope that we are able to transfer ahead rapidly with the assist of all members,” he stated when introducing the invoice.

He stated the modification deserved pressing consideration.

The Canadian Agri-Meals Commerce Alliance urged the Commons and the Senate to reject it.

“As with earlier iterations of this invoice, C-202 would undermine Canada’s agri-food sector, injury our commerce relationships and hurt the hundreds of farmers, ranchers, processors and agri-food exporters who depend on open entry to international markets to make a dwelling,” stated president Greg Northey in a information launch.

CAFTA stated the invoice would have implications for all sectors of the economic system, not simply agriculture, and that sectoral carveouts in commerce negotiations would put aims in danger at a time when Canada needs to be extra formidable.

The group urged MPs to not bypass parliamentary process and ship it on to the Senate, however they did.

The talk over provide administration additionally continues exterior of politics.

College of Saskatchewan agricultural economics professor professor Stuart Smyth referred to as for the system to be phased out “for the higher good of the nation.”

In a June 3 commentary for the Macdonald-Laurier Institute, Smyth stated that may decrease the price of dairy and poultry merchandise for customers. He referred to as provide administration “an outdated, flawed and dear system” and an anti-competitive manufacturing mannequin.

Dairy Farmers of Canada begged to vary.

For one factor, farmers don’t set retail costs, the group stated after reviewing the commentary.

“The costs of provide managed merchandise have remained steady and customarily in line or under inflationary tendencies in Canada,” it stated in an emailed assertion.

“In 2024, the typical retail worth of milk was virtually equal to that of america at $1.64 per litre in Canada versus $1.44 per litre within the U.S.”

On the identical time, the typical costs of yogurt, pure cheese blocks and butter have been related or decrease.

DFC stated American and different dairy programs obtain direct monetary manufacturing subsidies, which suggests customers pay twice — via taxes and on the retailer.

Smyth stated farms could be bigger and extra environment friendly with out the provision managed system. DFC stated Canadian dairies are smaller than these within the U.S. however that doesn’t make them inefficient.

Smyth stated the brand new authorities ought to part out provide administration by eradicating 10 share factors of complete quota annually for the subsequent 10 years. He additionally stated the federal government ought to scale back tariffs by the identical quantity in the identical time-frame to encourage competitors.

“Permitting new and current producers to extend manufacturing primarily based on free market alerts will enormously scale back the waste and inefficiencies which have lengthy existed in provide administration manufacturing programs, such because the follow of dumping extra milk,” Smyth wrote.

DFC has disputed a research earlier this 12 months that estimated Canadian dairy farms dumped 6.8 billion litres of milk between 2012 and 2024.

Smyth additionally argued that dairy manufacturing might and will transfer to the Prairies as a result of herds are already twice as massive as the typical Quebec herd and water is plentiful.

“Canadian dairy customers are paying greater costs to subsidize small, inefficient Quebec dairies, whereas different dairies throughout Canada are dumping milk as they don’t have sufficient quota to promote the total quantity of milk they produce,” he stated.

Smyth recommended 4 insurance policies authorities might enact:

• Quota licences needs to be accessible nationally, moderately than provincially.

• There needs to be a time-limited assure backstop for youthful farmers who’ve used their quota as collateral.

• Monetary establishments acknowledge the worth of quota licences whereas the system is dismantled and never demand speedy reimbursement.

• The federal government must also present a 10-year assure to farmers who exhibit financial efficiencies and improve working fairness, thereby lowering their monetary danger, earlier than the system is formally dismantled.

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