Under supply management, centralized boards establish production levels to meet consumer demand for food products such as milk, poultry and eggs. Farmers and producers then adjust their production in order to meet these production levels and satisfy local consumer needs.
Five commodities are supply-managed in Canada – milk, chicken, turkey, table eggs and broiler-hatch eggs. Supply management is recognized by the Canadian and British Columbian governments as a proven solution to maintaining price stability and ensuring that Canada is able to meet the needs of consumers without being dependent on imported products. Supply management helps to support local agriculture without using subsidies from tax dollars. Consumers benefit from having an uninterrupted supply of high quality, safe food products at stable and affordable prices.
How long has supply management been around?
Supply management was originally implemented to stabilize highly volatile agricultural markets. In the 1970’s, the federal government realized that a lack of production limits (“quotas”) was producing an overabundance of agricultural products, which in turn would trigger a decline in prices. Supply management creates an orderly marketing system through collaboration among Canadian farmers and the provincial and federal governments, and works to ensure that prices are stable and predictable for Canadian consumers.
What does a ‘marketing board’ do?
Marketing boards are the only entities authorized to facilitate a system of supply management. Provincial boards exist to regulate production through the granting of quota, and control movement within their jurisdictions.
In addition, there are provincial and federal government supervisory bodies which regulate the operation of provincial marketing boards and the national agencies. In British Columbia, the BC Farm Industry Review Board and the BC Council of Marketing Boards serve this function. The National Farm Products Council supervises the operation of EFC at the national level.