Friday, July 26, 2013

Milk producers are leaving some clout on the table


Canada’s dairy farmers are leaving some of their political and economic power on the table, according to a study by economists at the University of Guelph.

Dr.Alan Ker
If the national supply management powers were exercised to their full extent, milk prices would be $103.34 per hectoliter, considerably higher than the current blend price of $72.94.

Doctoral student Na Li and Dr. Alan Ker, chairman of the department of food agricultural and resource economics, calculate that the marketing boards are using only 57 per cent of their potential clout to control production volumes and 40 per cent of their pricing clout.

The highly-academic research paper is posted on the university’s website.