A new report from the Montreal Economic Institute says Canada's supply management system is costing the average Canadian $244 per year through higher prices for dairy, eggs and poultry.

The study argues that while supply management is often promoted as a way to protect Canadian farmers, the real cost is borne by consumers every time they visit the grocery store.

Supply management uses production quotas and import restrictions to control the supply of dairy, poultry and eggs in Canada. Foreign competitors face tariffs that can exceed 200%, limiting competition and helping keep domestic prices above world market levels.

According to the MEI, the burden falls hardest on lower-income Canadians. Households in the lowest income bracket pay an estimated $279 more per year because of supply management, compared to about $190 for households in the highest income bracket.

"Supply management acts like a regressive tax," the report argues, because food expenses consume a larger share of income for poorer families.

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The findings come as Canadians continue to struggle with food affordability. Grocery prices remain significantly higher than they were before the inflation surge of recent years, and food banks across the country are reporting record demand.

The report estimates that a family of four pays nearly $1,000 annually in higher food costs because of the system.

Critics have long argued that supply management functions as a government-protected cartel that benefits a relatively small number of quota holders while forcing millions of Canadians to pay more for basic staples. Supporters counter that the system provides stability for farmers and helps ensure domestic food security.

Canada's protected dairy and poultry sectors have repeatedly become sticking points in trade negotiations, particularly with the United States, where American producers continue to push for greater access to Canadian markets.

For consumers already feeling squeezed by the cost of living, the MEI's conclusion is straightforward: Canada's supply management regime is adding hundreds of dollars to annual grocery bills at a time when many families can least afford it.