Politicians want more competition but supply management still a 'sacred cow'

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Politicians want more competition but supply management still a 'sacred cow'
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OTTAWA — There aren't many issues that garner support across party lines in Ottawa these days.

But when it comes to the supply management system for egg, poultry and dairy products — the mechanism that sets prices for producers — all of Canada's federal parties seem to see eye-to-eye.

First introduced in the dairy industry in the 1960s before expanding into eggs and poultry, the system exists in lieu of subsidies, which are common in the agricultural sector around the world. But when it comes to sectors covered by supply management, concerns about weak competition in the Canadian economy don't seem to exist.

Former competition commissioner Melanie Aitken is a forceful critic of supply management, which she described as a "sacred cow" in Ottawa. Research co-authored by Cardwell in 2015 found that supply management costs the poorest households $339 a year, which amounts to about 2.3 per cent of their income.

He said he was a fan of the system before he took on his role as Egg Farmers of Canada chair in public policy."There's just this sort of implicit assumption, if it's regulated … then it just can't be competitive. But that is absolutely not the case." "The experience from COVID is a reminder that depending on foreign industries or governments to supply Canadians in times of need is unwise," said the Dairy Farmers of Canada.

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