Is Canada's Supply Management System Able to Accommodate the Growth of Farm-direct Marketing?

A Policy Analysis

Keywords: Farm-Direct Marketing, Food Systems, Local Food, Short Supply Chains, Supply Management

Abstract

In recent years, Canada has witnessed a rapid growth in short food supply chains. As in other countries, such marketing channels have emerged in Canada in response to a growing demand among consumers for fresh, local products. However, a unique feature of Canadian agriculture is that dairy, egg, and poultry production are under supply management. The government requirement for producers in these sectors to purchase a quota ensures that output matches domestic demand. Until recently, though, little attention had been paid to how this system affects the development of short food supply chains in the country. The pur­pose of our study is to examine this emerging issue. The results of our policy analysis suggest that small farmers in Canada face multiple challenges when seek­ing to produce and market specialty products that are under supply management. Furthermore, the cost of entering supply-managed sectors for producers varies as each province is responsible for establishing its own quota exemption limits, mini­mum quotas, and new entrant programs. Our study indicates that supply management policies have important implications for local and regional food system development and for food diversity in Canada.

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Author Biographies

Patrick Mundler, Université Laval

Faculty of Agriculture and Food Sciences, Department of Agri-Food Economics and Consumer Sciences

Daniel-Mercier Gouin, Université Laval

Department of Agri-Food Economics and Consumer Sciences

Sophie Laughrea, Université Laval

Department of Agri-Food Economics and Consumer Sciences

Simone Ubertino, Université Laval

Department of Agri-Food Economics and Consumer Sciences

Published
2020-05-22
How to Cite
Mundler, P., Gouin, D.-M., Laughrea, S., & Ubertino, S. (2020). Is Canada’s Supply Management System Able to Accommodate the Growth of Farm-direct Marketing? A Policy Analysis. Journal of Agriculture, Food Systems, and Community Development, 9(3), 261-279. https://doi.org/10.5304/jafscd.2020.093.023