Friday, May 26, 2017

Canadian Dairy and the Effects of Supply Management

This is an interesting piece by a Canadian dairy farmer, which shows how differently that country manages dairy industry.  Canada uses a supply management system, which sounds similar to the system ASCS managed for our tobacco industry until this century.

To me the bottom line is that supply management can work for a number of years, as it did for Canadian dairy and American tobacco and peanuts, if "work" means maintaining smaller producers. It doesn't work if the priority is innovation and efficiency over the long range.

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