Clearly there is no direct subsidization of the dairy industry at least in the terms that most people think of subsidies. The only thing that allows the supply management system in Canada to exist is the legislation that exists effectively preventing imports and therefore any competition in the marketplace. Remove the tariffs on imports and it's all over. Reality bites.
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I think a lot of people don't have a problem with the government helping people out for a short time if there is some kind of disaster. And thats how programs like crop insurance and agri-stability work.
SM on the other hand is a permanent, full time hand out which makes a few people rich at the expense of everyone else. It is a true dog eat dog system.
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Wrong franny, try reading the definition of subsidy
again - that's not my definition by the way it's the
dictionary definition.
Rockpile you raise a good point. Guess where the
retail milk price of milk is even higher than Canada -
that's right New Zealand!! How can that be? Retail and
processor profiteering is the answer. There is no
indication CDN retail milk prices would decrease if SM
was abolished. It would just go straight into the
pockets of Saputo etc, just the same as the Cargills
and Nilssons in the beef world.
This is what franny and co want - deregulated race to
the bottom under the pretence of "free market". You
want to talk about price fixing, cartels and the
consumer getting a bad deal just look at the
electricity sector in Alberta.
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No grassie it is you who are wrong. The folks around the world who measure subsidies like the OECD and the WTO count these tariff systems just like any other subsidy.
Its always amazing how those in love with government programs will twist themselves into pretzels jumping away from the facts.
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And Grassie you sound just like the chicken littles who said there is no way that canadian wheat farmers would ever get paid the same price as a US farmer in an open market. Well here we are today getting the same or better.
You take down that SM tariff wall and consumers will benefit big time.
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With the TTP milk, cheese, butter, eggs, poultry, etc. will come from where ever the corporations can source it the cheapest.....and that sure won't be Canada!
It won't be any cheaper. It will be whatever the market will bear.
All our dairy and poultry farmers will be growing grain. All our processing plants will be shutting down and moving the equipment to Vietnam.
As a little side note, get ready to pay a lot more for any medication you might need!
The corporations are about to screw you big time.
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You never actually had supply management in the UK
hedgehog, merely production quotas to control
production with no price setting of the end product.
That was a severely watered down version of the SM
system we have here. The strength of it was the milk
marketing boards which acted in exactly the same
manner as the CWB marketing farmers grains
collectively. And you are right - it worked great and
how they wish they had the boards back again.
A little bit of premature crowing here by the grain
guys about how smart they are with no CWB rather
reminds me of the early guys that signed contracts
with Wiseman on milk in Scotland....just give it a little
while to get an education in the deregulated
marketplace.
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Grassy,
"The strength of it was the milk
marketing boards which acted in exactly the same
manner as the CWB marketing farmers grains collectively."
Did you ACTUALLY market grain through the CWB Grassy?
Ontarioio was given $1.50/bu leg up on grain prices ... and the CWB discount marketed high quality wheat into the US at $75/t below world market prices!
How this could be compaired to Cdn SM marketing... with cost of production components... I can't make the connection.
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Try reading it again TOM S-L-O-W-L-Y!!
I wasn't comparing Cdn "SM marketing" to the CWB I
was comparing the milk marketing boards they had
for dairy in the UK with the CWB.
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