Supply management and interprovincial trade barriers remain significant obstacles to Canada's economic competitiveness. These policies limit competition and maintain artificially high prices, placing a financial burden on consumers while preventing producers from reaching their full potential.

Even Quebec Premier François Legault has made it clear that supply management for dairy products is "non-negotiable" during his recent visit to Washington.

Premier Legault says any changes to Quebec's dairy cartel are "not negotiable," claiming "it's a way to protect small farms in all the regions" of the province. pic.twitter.com/kT3oW5XWdG

— Rebel News (@RebelNewsOnline) February 12, 2025

To better understand the impact of these policies and potential reforms, we spoke with Sylvain Charlebois, a professor at Dalhousie University and an expert in food distribution and policy.

According to Charlebois, supply management has become deeply politicized, particularly due to its stronghold in Quebec. "Half of dairy farms are in Quebec, and politically, this group, the dairy farmers in Quebec, La Fédération, they control everything," he explained. "They have huge influence across the board, spending over $9 to $10 per Canadian per year on marketing alone."

The system is complex, with tariffs on imports, a quota system managed by provinces, and a Crown corporation setting "fair" prices. "Politicians don’t understand it at all," Charlebois noted. "They’re told to say it works for everyone, but when you sit down with them, they’ll tell you it’s very complicated."

One major issue is the restriction on interprovincial trade. "If you want to start a creamery or cheese-making factory in the Atlantic, there are no quotas—you have to go to Quebec," Charlebois pointed out. "It’s centralized, stifling innovation."

Maxime Bernier annonce qu'il se présentera en Beauce lors des prochaines élections, faisant de l'abolition du cartel de la gestion de l'offre son principal enjeu. pic.twitter.com/JwukdjgtxO

— Guillaume Roy (@guillaum3roy) February 13, 2025

Charlebois also highlighted the inefficiencies in production. "In Quebec, the average farm has 80 cows, whereas in Alberta, it’s 220. It costs much less to produce milk in Alberta," he explained. "If we abolished supply management overnight, we’d likely see a shift in production from east to west."

Despite these concerns, change is difficult. "Dairy Farmers of Canada can end political careers. They go after people—I've seen it firsthand," Charlebois warned. "They own politicians, agricultural schools, and Crown corporations like Farm Credit Canada and the Canadian Dairy Commission."

The lack of competition also affects quality and choice. "In Canada, industrial milk costs three times more than in the U.S., leading to fewer options at grocery stores and declining innovation," he said. "New Zealand once had supply management, but they moved on. Now, their dairy industry exports over $20 billion worth of products to Asia each year. We need that kind of strategic thinking."

Rebel News attempted to reach out to the Dairy Farmers of Canada and the Union des producteurs agricoles for their side of the story, but no one has replied yet. If they respond, their statement will be added here.

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