Freeing Up Food: The Ongoing Cost, and Potential Reform, of Supply Management

Abstract

Government-mandated cartels in eggs, dairy and poultry products impose high costs on consumers and harm Canada’s standing in international trade. The authors offer compelling evidence of the high costs to Canadian consumers and limited benefits to farmers arising from the supply management system. The study recommends phasing out Canada’s controversial supply management system through sales of new quota for the production and sale of these products.

Keywords: Governance and Public Institutions, Canadian agriculture, supply management policy, agricultural production quotas

JEL Classification: Q11, Q18