For reference sake, the price of milk in town ranges from $3.99 to $4.99.
That's funny that hedgehog chimed in right here because I was going to say just about the same as he. But it actually carries quite a bit more weight coming from the voice of experience rather than theory.
From what sources I have heard, they seem to pay around 15% less than we do. It takes a bit of calculation to work the cost back to an exact equivalent, taking into account the volume and exchange. If I am too far wrong one way or the other, I am open to correction.
However, this is the bottom line - the consumer always pays the full cost of production, or more, if the product is government subsidized. So, their real cost is possibly higher than ours.
Because what the American consumers are saving at the checkout, they are paying through their taxes to support the subsidy programs that are a large and significant part of the American dairy program.
And given the cost of government (mis)managing anything, how smart is a system like that?
Additionally, not only do they need recurrent, government-subsidized herd buyouts, besides whatever else the dairy farmers get, the buyouts are something to be dreaded by the beef sector because of all the meat they "dump" onto the market.
Yup. That works well!
There is a lot wrong with the way supply management is run in Canada, but the final product cost is not one of them.
That's funny that hedgehog chimed in right here because I was going to say just about the same as he. But it actually carries quite a bit more weight coming from the voice of experience rather than theory.
From what sources I have heard, they seem to pay around 15% less than we do. It takes a bit of calculation to work the cost back to an exact equivalent, taking into account the volume and exchange. If I am too far wrong one way or the other, I am open to correction.
However, this is the bottom line - the consumer always pays the full cost of production, or more, if the product is government subsidized. So, their real cost is possibly higher than ours.
Because what the American consumers are saving at the checkout, they are paying through their taxes to support the subsidy programs that are a large and significant part of the American dairy program.
And given the cost of government (mis)managing anything, how smart is a system like that?
Additionally, not only do they need recurrent, government-subsidized herd buyouts, besides whatever else the dairy farmers get, the buyouts are something to be dreaded by the beef sector because of all the meat they "dump" onto the market.
Yup. That works well!
There is a lot wrong with the way supply management is run in Canada, but the final product cost is not one of them.
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