Tuesday, August 28, 2012

Quebec report rakes supply management


Mario Dumais has written a report that says supply management has done little to help farmers, but is costing consumers about $3.9 billion a year.

The report for the Montreal Economic Institute says consumers lose because supply management ends competition among farmers to improve productivity which would, in turn, lower production costs and reduce food prices.

Farmers fail to benefit because they have to buy quota which is estimated to be worth $30 billion.

Dumais says he understands why farmers are reluctant to change, but said supply management ought to be gradually phased out.

``I think our farmers ... are very, very efficient, dynamic entrepreneurs and if we give them the possibility to develop their creativity and their entrepreneurship, we would be surprised to realize how they can internationally become competitive,” he said.

The report is one of the first from Quebec to dare to criticize supply management. The Quebec dairy industry is widely feared for its political clout.