Georgian Bay Milk Co., based in Barrie, Ont., would buy milk from a clutch of farmers operating outside Canada’s tightly controlled supply managed dairy industry and ship it to dairies in New York state.
The business was profitable, and it generated jobs and exports – everything the federal Conservative government says it’s all about.
But the Ontario Superior Court declared the exports illegal, ruling in 2008 that farmers must sell their milk exclusively through the province’s official dairy marketing board, the Dairy Farmers of Ontario.
“We could be exporters of milk and cheese, instead of importers,” laments Chris Birch, a former dairy farmer who started the now-shuttered company. “It’s ridiculous.”
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Time to end supply management – but it won’t go quietly,
As I mentioned the other day the Harper government very recently stated that it “has always been a consistent defender of supply management” – but that creates a problem because certain TPP member states are demanding that Canada dump supply management if Harper wants into the club.
The problem with dumping supply management is that Quebec, which Harper is currently very concerned about because of exceedingly low (and falling) support levels, benefits considerably from supply management.
So ….. does he do an about face and further anger Quebec (and Ontaio which also benefits from supply management) to gain membership in the TPP, or does he abandon hopes of sitting at the TPP table in the hopes of capturing more seats in Quebec?
Although I’m not informed enough to evaluate the consequences of the abandonment of supply management in Québec it might end up being positive in the long term, and I assume some short term compensation would be given to our farmers to keep them in business as it’s important to maintain a locally produced food supply even if just for emergencies like World food production markets collapsing.
One thing that come to mind with the milk and cheese industries in Québec is that there is a very successful, in quality at least, small specialty cheese makers who make raw cheeses rivalling the European cheeses, and these products might be ” exportable ” to a higher degree in a ” freer ” and open ” World Market ” than presently? This specialty cheese can be compared to the market in fine wines and being able to export it freely would probably be much better than being restricted to only local sales and to the probably limited foreign markets who allow imports from a ” protected market ” not allowing their dairy food products into Canada.
Obviously, the ones taking advantage of new opportunities will be those with an adventurous and business mindset, while the lazy, not too smart or timid will whine about lost entitlements preferring what they know and frightened by having to make decisions or take chances.
Quality only goes so far in todays economy jean, with household money the way it is for millions of Canadians how many are going to be able to afford to choose the better quality Canadian chicken over the far (far) cheaper Vietnamese chicken when food budgets are stretched?
Half price eggs from Malaysia?
Cheap cheese from Mexico?
How much does it cost to produce a litre of milk in Peru?
This may be Harper’s watershed moment in terms of popularity: will this be similar to Mulroney’s GST initiative? It has proven to be beneficial to Canada, but helped to ruin Mulroney politically.
I’m convinced that Harper will sign on TPP – the long term benefits to Canada will be enormous. Short-term, however, there will be howls of protest. I’m sure he’s already working on backroom deals with the provinces – especially Quebec – to bring other bribes, er, benefits to the table when supply management will be dropped. The provinces will accept, and immediately howl and join the caterwailing Opposition in heart-wrenching sobs describing how the “heart” of Canada is being ripped assunder. If Harper stick-handles this properly – greasing the correct palms and leading the media to the story he wants to spin – the pain will be temporary, and the political damage minor. Harper has shown very adroit political “stick-handling” in the past.
What he can’t control and what may come back to haunt him is the realization of any tangible trade deals via the TPP. If the global economy tanks, the new trade deal – and the government – will not be viewed favourably. It’s a big gamble, no doubt.