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Alberta Premier Danielle Smith is considering the province's exit from Canada's dairy and poultry supply management quota system, a challenge she voiced at the "Alberta Next" town hall while contemplating the province’s standing in Confederation.

Smith told her Red Deer audience that she found the idea intriguing, though supply management isn't among the discussion topics proposed by the panel.

“Creating our own Alberta version of supply management, maybe as a pathway to a market system and … just because it would stick our finger in the eye of Quebec … might be [something] we want to do a little consultation on,” Smith said Tuesday evening.

The Government of Alberta has been at odds with Québec for months over supply-chain legislation, Bill C-202 (formerly C-282).

Alberta's Minister of Jobs, Economy, and Trade, Matt Jones, previously said that the bill jeopardizes Canada's reputation as a reliable trading partner. 

Bill C-202, a revision of the failed Bill C-282, was introduced in May. It seeks to amend the Department of Foreign Affairs Act to shield dairy quota holders from international trade treaties.

Beef and grain producers opposed the protectionist measures, warning they harm other Canadian economic sectors and imperil federal access to international markets, especially Alberta, ahead of CUSMA's 2026 review.

The province’s 2023 exports to the U.S. reached $162.2 billion (89.6% of total), including $17.9 billion in agriculture and agrifood products — over half of Alberta’s beef, plus a significant amount of pork and grain.

Sylvain Charlebois, Dalhousie University’s Agri-Foods Analytics Lab director, told the National Post that Alberta, with its minimal dairy-quota involvement, could become a “sh*t disturber” that makes politicians rethink their blind support of supply management.

In February, Smith asked her agricultural minister to discuss potential Canada-U.S. trade concessions on supply management.

Alberta dairy farmers benefit little from the existing scheme, paying up to twice as much as farmers in Quebec and Ontario for the same quota share.

Charlebois stated Alberta could exit the federal system and establish its own dairy commission, but selling products elsewhere in Canada would be challenging. He questioned if other provinces would be considered foreign markets and noted they might object to Alberta "dumping" cheaper, non-supply-managed products across borders.

Alberta's supply management faced controversy in April when an egg farmer was jailed over a quota dispute with the egg marketing board.

Both Prime Minister Mark Carney and Conservative Leader Poilievre support supply management.

Carney backed C-202 before the summer recess amidst ongoing U.S. trade disputes, while Poilievre backed supply management during a recent CBC interview.

Supply management has further complicated trade talks, with President Trump threatening 35% tariffs on all Canadian products, singling out Canada’s restricted dairy market in a letter to Prime Minister Carney.

“Supply management will never, never be on the negotiation table,” Carney told MPs May 29. “Supply management will be protected.”