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Agriculture

Bill C-282, now in the Senate, risks holding back other economic sectors and further burdening consumers

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6 minute read

From the Frontier Centre for Public Policy

By Sylvain Charlebois

Bill C-282 currently sits in the Canadian Senate and stands on the precipice of becoming law in a matter of weeks. Essentially, this bill seeks to bestow immunity upon supply management from any potential future trade negotiations without offering increased market access to potential trade partners.

In simpler terms, it risks holding all other economic sectors hostage solely to safeguard the interests of a small, privileged group of farmers. This is far from an optimal scenario, and the implications of this bill spell bad news for Canadians.

Supply management, which governs poultry, egg, and dairy production in Canada, has traditionally enabled us to fulfill our domestic needs. Under this system, farmers are allocated government-sanctioned quotas to produce food for the nation. At the same time, high tariffs are imposed on imports of items such as chicken, butter, yogurt, cheese, milk, and eggs. This model has been in place for over five decades, ostensibly to shield family farms from economic volatility.

However, despite the implementation of supply management, Canada has witnessed a comparable decline in the number of farms as the United States, where a national supply management scheme does not exist. Supply management has failed to preserve much of anything beyond enriching select agricultural sectors.

For instance, dairy farmers now possess quotas valued at over $25 billion while concurrently burdening dairy processors with the highest-priced industrial milk in the Western world. Recent data indicates a significant surge in prices at the grocery store, with yogurt prices alone soaring by over 30 percent since December 2023. This escalation is increasingly straining the budgets of many consumers.

It’s evident to those knowledgeable about the situation that the emergence of Bill C-282 should come as no surprise. Proponents of supply management exert considerable influence over politicians across party lines, compelling them to support this bill to safeguard the interests of less than one percent of our economy, much to the ignorance of most Canadians. In the last federal budget, the dairy industry alone received over $300 million in research funds, funds that arguably exceed their actual needs.

While Canada’s agricultural sector accounts for approximately seven percent of our GDP, supply-managed industries represent only a small fraction of that figure. Supply-managed farms represent about five percent of all farms in Canada. Forging trade agreements with key partners such as India, China, and the United Kingdom is imperative not only for sectors like automotive, pharmaceuticals, and biotechnology but for the vast majority of farms in livestock and grains to thrive and contribute to global welfare and prosperity. It is essential to recognize that Canada has much more to offer than merely self-sufficiency in food production.

Over time, the marketing boards overseeing quotas for farmers have amassed significant power and have proven themselves politically aggressive. They vehemently oppose any challenges to the existing system, targeting politicians, academics, and groups advocating for reform or abolition. Despite occasional resistance from MPs and Senators, no major political party has dared to question the disproportionate protection afforded to one sector over others. Strengthening our supply-managed sectors necessitates embracing competition, which can only serve to enhance their resilience and competitiveness.

A recent example of the consequences of protectionism is the United Kingdom’s decision to walk away from trade negotiations with Canada due to disagreements over access to our dairy market. Not only do many Canadians appreciate the quality of British cheese, but increased competition in the dairy section would also help drive prices down, a welcome relief given current economic challenges.

In the past decade, Canada has ratified trade agreements such as CUSMA, CETA, and CPTPP, all of which entailed breaches in our supply management regime. Despite initial concerns from farmers, particularly regarding the impact on poultry, eggs, and dairy, these sectors have fared well. A dairy farm in Ontario recently sold for a staggering $21.5 million in Oxford County. Claims of losses resulting from increased market access are often unfounded, as farmer boards simply adjust quotas when producers exit the industry.

In essence, Bill C-282 represents a misguided initiative driven by farmer boards capitalizing on the ignorance of urban residents and politicians regarding rural realities. Embracing further protectionism will not only harm consumers yearning for more competition at the grocery store but also impede the growth opportunities of various agricultural sectors striving to compete globally and stifle the expansion prospects of non-agricultural sectors seeking increased market access.

Dr. Sylvain Charlebois is senior director of the agri-food analytics lab and a professor in food distribution and policy at Dalhousie University.

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Agriculture

Sweeping ‘pandemic prevention’ bill would give Trudeau government ability to regulate meat production

Published on

From LifeSiteNews

By Anthony Murdoch

Bill C-293, ‘An Act respecting pandemic prevention and preparedness,’ gives sweeping powers to the federal government in the event of a crisis, including the ability to regulate meat production.

The Trudeau Liberals’ “pandemic prevention and preparedness” bill is set to become law despite concerns raised by Conservative senators that the sweeping powers it gives government, particularly over agriculture, have many concerned.

Bill C-293, or An Act respecting pandemic prevention and preparedness, is soon to pass its second reading in the Senate, which all but guarantees it will become law. Last Tuesday in the Senate, Conservative senators’ calls for caution on the bill seemed to fall on deaf ears. 

“Being from Saskatchewan I have heard from many farmers who are very concerned about this bill. Now we hear quite a short second reading speech that doesn’t really address some of those major concerns they have about the promotion of alternative proteins and about the phase-out, as Senator Plett was saying, of some of their very livelihoods,” said Conservative Senator Denise Batters during debate of the bill. 

Batters asked one of the bill’s proponents, Senator Marie-Françoise Mégie, how they will “alleviate those concerns for them other than telling them that they can come to committee, perhaps — if the committee invites them — and have their say there so that they don’t have to worry about their livelihoods being threatened?” 

In response, Mégie replied, “We have to invite the right witnesses and those who will speak about their industry, what they are doing and their concerns. Then we can find solutions with them, and we will do a thorough analysis of the issue. This was done intentionally, and I can provide all these details later. If I shared these details now, I would have to propose solutions myself and I do not have those solutions. I purposely did not present them.” 

Bill C-293 was introduced to the House of Commons in the summer of 2022 by Liberal MP Nathaniel Erskine-Smith. The House later passed the bill in June of 2024 with support from the Liberals and NDP (New Democratic Party), with the Conservatives and Bloc Quebecois opposing it.   

Bill C-293 would amend the Department of Health Act to allow the minister of health to appoint a “National pandemic prevention and preparedness coordinator from among the officials of the Public Health Agency of Canada to coordinate the activities under the Pandemic Prevention and Preparedness Act.”  

It would also, as reported by LifeSiteNews, allow the government to mandate industry help it in procuring products relevant to “pandemic preparedness, including vaccines, testing equipment and personal protective equipment, and the measures that the Minister of Industry intends to take to address any supply chain gaps identified.”

A close look at this bill shows that, if it becomes law, it would allow the government via officials of the Public Health Agency of Canada, after consulting the Minister of Agriculture and Agri-Food and of Industry and provincial governments, to “regulate commercial activities that can contribute to pandemic risk, including industrial animal agriculture.”  

The bill has been blasted by the Alberta government, who warned that it could “mandate the consumption of vegetable proteins by Canadians” as well as allow the “the federal government to tell Canadians what they can eat.” 

As reported by LifeSiteNews, the Trudeau government has funded companies that produce food made from bugs. The World Economic Forum, a globalist group with links to the Trudeau government, has as part of its Great Reset agenda the promotion of “alternative” proteins such as insects to replace or minimize the consumption of beef, pork, and other meats that they say have high “carbon” footprints.  

Trudeau’s current environmental goals are in lockstep with the United Nations’ “2030 Agenda for Sustainable Development” and include phasing out coal-fired power plants, reducing fertilizer usage, and curbing natural gas use over the coming decades, as well as curbing red meat and dairy consumption. 

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Agriculture

Time to End Supply Management

Published on

From the Frontier Centre for Public Policy

By Marco Navarro-Génie

According to a 2021 report from the Montreal Economic Institute, Canadian families pay up to $600 more per year on dairy products alone due to supply management.

The New Democrats and the Liberals have pledged to tackle inflation, curb price gouging, and address child poverty. Leaders like Jagmeet Singh have railed against corporate greed while Prime Minister Justin Trudeau’s government has introduced programs claiming to feed your children.

But despite these announcements, food affordability remains a serious problem in Canada. If our political leaders are truly committed to making nutritious food accessible for all Canadians, they must confront the largely ignored factor: Canada’s supply management system.

Supply Management Hurts Families

Supply management, which governs the production and pricing of dairy, eggs, and poultry in Canada, was designed  to stabilize farmers’ incomes. However, it now acts as an unnecessary burden on consumers, artificially inflating the cost of essential food items. Farmers are given strict quotas on how much they can produce, and sky-high tariffs—often more than 200%—are imposed on imports.

This creates a closed market that keeps prices far higher than in a free-market system. According to a 2021 report from the Montreal Economic Institute, Canadian families pay up to $600 more per year on dairy products alone due to supply management. This is no small sum to households already feeling the pinch.

To put it in perspective, a litre of milk in Canada costs between $1.50-$2.50, compared to USD 1.00 (around $1.35 CAD) in the United States, where such market controls don’t exist. The cost of other staples, such as eggs and chicken, follows the same pattern, with Canadians paying significantly more than their American counterparts.

These artificially high prices disproportionately affect families struggling. As inflation continues to drive up the cost of housing, fuel, and other essentials, paying extra for basic food becomes the tipping point between having three meals a day or skipping meals to cover rent or bills.

The Conservative Opportunity: Free Markets and Family Values

The Conservative Party has historically championed free markets and policies promoting family well-being, but they also support the food cartels.

In a genuinely free market, prices are determined by supply and demand, leading to lower consumer costs and more production efficiency. Ending supply management would achieve both goals.

While Conservatives have long supported free markets, they have been reluctant to challenge supply management, largely due to political concerns in Quebec, where the system is popular among producers. Being pro-trade and supporting supply management are incongruous political positions.

However, with the Conservatives drawing closer to forming government, potentially without significant electoral support from Quebec, now is the time for a strategic shift. Shedding the protectionist policies would be a bold and forward-thinking move to distinguish the party as serious about free markets and family welfare.

It would also send a powerful message to voters across the country, particularly in regions where food insecurity is rising. Conservatives could frame the policy change as a direct effort to reduce food prices, ease the burden on low-income families, and protect Canadian consumers from the high costs supply management imposes.

The Ethical Case: Dumping Food While Canadians Go Hungry

Perhaps the most shocking aspect of supply management is the appalling waste it produces. To keep prices high, in 2023 alone, tens of millions of litres of milk were discarded—wasted food that could have gone to Canadians in need. This is an unconscionable practice in a country where nearly 2 million people rely on food banks to survive. How can wasting food while so many families struggle to afford basic groceries be justified?

This waste flies in the face of compassion and fairness, and contradicts the principles of a free market.

The Bloc Quebecois’ Game

Given that the significant dairy industry in Quebec benefits immensely from supply management, the Bloc Quebecois is seeking to leverage the weakness of the Trudeau minority in exchange for a Bloc bill, Bill C-282, that would shield supply management from future changes.  The Bloc Québécois Bill C-282 wants to amend the Trade and Development Act. Reportedly, it has support from all parties in Parliament.

One of the key setbacks is the restriction supply management places on open market access. It hinders the ability to fully embrace free trade agreements. A primary objectives of Bill C-282 is to prevent the Canadian government from making concessions in international trade agreements that could undermine the supply management system. This is particularly relevant in trade negotiations where foreign countries often seek increased access to Canada’s agricultural markets.

Consequently, this limits the potential for growth in agricultural exports. Central Canada benefits the most from supply management, and although its trade reverberations hurt everyone, they seem to hurt Western producers the most.

A Call to Action for All Parties

For New Democrats and Liberals, the solution to supporting families and children through food affordability lies  in targeting alleged corporate greed and expanding social programs. But if they are serious about addressing child poverty and food insecurity, they would confront supply management. Likewise, for Conservatives, ending supply management is a natural extension of their free-market impetus and commitment to family values.

The time for change is now. Regardless of party, all political leaders should recognize that dismantling supply management would be a direct, meaningful step toward making food more affordable for all Canadians, as well as maximizing agricultural chances to expand Canada’s exports. With the rising cost of living pushing more families into food insecurity, we cannot afford to let outdated policies continue to inflate prices, immorally perpetuate waste, and curtail chances for greater growth in Agrifoods.

Dismantling supply management would offer tangible relief to millions of Canadian consumers, particularly low-income families.  All other parties should start by killing Bill C-282.

Marco Navarro-Génie is the Vice President of Research at the Frontier Centre for Public Policy

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