Supply Management
- Timothy Knight
- Aug 4, 2025
- 3 min read
Updated: Sep 30, 2025
Summary
The People's Party of Canada (PPC) advocates for a complete overhaul of Canada's supply management system for dairy, poultry, and eggs. The party characterises the current system as an "inefficient and fundamentally unfair government-imposed cartel" that artificially inflates prices for consumers through production control, import bans, and price fixing.
The PPC argues that supply management negatively impacts other sectors of the economy by forcing food processors and restaurants to pay more for basic ingredients, thereby reducing their competitiveness. They also contend that it hinders Canada's ability to secure better trade deals, as protecting supply management often becomes a primary focus in negotiations.
The plan involves:
Creating a free, open, and fair system
Aiming to lower prices for consumers and improve international trade relations.
Phasing out the system gradually
Allowing farmers time to adapt to a free-market environment.
Compensating farmers
Reimbursing them for the lost value of their quotas during the transition.
Enabling international market access
Allowing Canadian dairy, egg, and poultry farmers to innovate and compete globally.
Application
The People's Party of Canada's (PPC) policy to dismantle supply management would have significant and multifaceted effects on British Columbia, particularly for its dairy, poultry, and egg sectors.
Impact on Producers
BC is home to a substantial portion of Canada's supply-managed farms, especially in the Fraser Valley. Under the current system, these farmers benefit from stable, predictable prices and market demand, insulating them from global price volatility. Eliminating supply management would expose BC farmers to international competition, where larger, industrialised farms in countries like the U.S. often operate at lower costs.
While the PPC proposes compensating farmers for lost quota value, the transition would likely be challenging. Many smaller, family-run farms could struggle to compete, potentially leading to consolidation, reduced farm numbers, and job losses in rural communities.
The BC Dairy Association, for instance, warns that dismantling the system could force BC farms to expand substantially or face closure, threatening local food security and increasing reliance on imports.
Impact on Consumers
The PPC argues that ending supply management would lead to lower food prices for consumers by removing artificial price floors and import tariffs. British Columbian consumers could see a reduction in the cost of milk, eggs, and poultry products.
However, some critics argue that without supply management, cost savings might not fully pass on to consumers, with retailers potentially absorbing the difference. Additionally, the stability and consistent quality currently provided by the system could be jeopardised, leading to greater price fluctuations and potential disruptions in supply due to reliance on international markets.
Broader Economic and Trade Implications
For BC's broader economy, removing supply management could potentially open up new trade opportunities for other agricultural sectors that are currently constrained by Canada's protectionist stance in dairy, poultry, and eggs.
However, it also means a significant shift for a well-established sector that contributes to the provincial GDP and provides a stable employment base. The transition period would require careful management and substantial support to mitigate negative impacts on farmers and rural communities across British Columbia.
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