Supply management needs a massive overhaul in Canada to help the dairy industry.
That’s according to a joint report from Dalhousie University and the University of Guelph that warns half of the dairy farms in Canada could disappear by 2030.
The study notes that major coffee chains are serving less dairy, younger Canadians have mixed feelings about whether dairy is good for the environment and are concerned about animal welfare, plus dairy alternatives are becoming more popular.
Sylvain Charlebois is the director of the Agri-Food Analytics Lab at Dalhousie University and co-authored the report.
He says farmers are on the receiving end of compensation from trade deals ratified by the federal government, but argues that by overcapitalizing the system, these funds will hurt farmers in long run.
The report calls for the implementation of what they call Supply Management 2.0, which is comprised of four steps.
“The first step would be to provide an incentive for some farmers to leave the industry altogether. There are farmers out there that are really not investing and don’t necessarily want to compete,” he says.
Other steps include making significant changes to the Canadian Dairy Commission, removing interprovincial trade barriers on dairy products and creating an innovation fund for the sector, and starting a 20-year plan to reduce general tariffs, develop an exporting strategy, create a Canadian brand, and incentivize innovation.
The report was originally slated to be released in March but was only released yesterday because delays due to COVID-19.
However, Charlebois says the ongoing pandemic meant there was even more information to add about how it has taken a toll on the industry.
“That’s why we went back to the report and added an extra layer related to COVID and pandemics and what may happen in the future, because this could happen again.”
Source: HalifaxToday
