How Alberta Could Destroy Canada's Soviet-Style Dairy Cartel | The Cory Morgan Show
Episode Stats
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203.45047
Summary
In this episode, I talk about why Alberta should get rid of Canada's supply management system on dairy, eggs, and poultry, and why it's time to end supply management and let the market run its own business.
Transcript
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Canada's Soviet supply management system on dairy, poultry, and eggs. It's been screwing
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citizens for decades with higher food prices. It's been shrinking family farms, and it's
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disrupted international trade deals. The dairy cartels are deeply entrenched in Canada, and
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they've effectively cowed every federal political party, including the Conservatives. No major
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federal leader is going to dare question supply management for fear of upsetting the precious
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souls in Quebec, which benefits, of course, disproportionately from the program. So the
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standoff on this terrible policy robs Canadian consumers of billions of dollars. Now Premier
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Daniel Smith might actually prove to be the catalyst that finally breaks this system.
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I mean, supply management serves Alberta poorly, and she can make a solid case as to why the
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province should exit the system. Smith has nothing to fear with the wrath of Quebec. If anything,
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pissing off, Quebec only bolsters her support back home. Alberta has some of the richest
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agricultural land in North America. We also have some of the most experienced and successful
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farmers and ranchers. If they could be freed from the shackles of Canada's supply management system,
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we could look forward to a more diverse, value-added agricultural industry, benefiting all Albertans,
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producers, and consumers. Currently, the dairy quotas predominantly go to Quebec producers. It's
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$25,000 a cow for a quota in Quebec, and as much as $50,000 in Alberta. It's illegal to produce eggs,
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milk, chickens, or turkeys without that government-issued quota. It's ridiculous. And Alberta
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farmer was recently jailed for the crime of selling his own eggs. The system is obscene
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in its control and infringement upon free markets. Albertans pay inflated prices for food products
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due to the purposeful strangulation of supply due to this system. In any other industry, this sort of
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price-fixing would be illegal. Canadian dairy producers have literally dumped over 6 billion
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litres of milk down the drain over the last few years because it would be illegal for them to sell it
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or even give it away. Isn't that nice for families struggling to pay the food bills? The systems led
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to Canada having fewer dairy farmers in larger concentrations in Quebec, of course. When supply
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management was first imposed upon farmers, there were 140,000 dairy farms. Now there's only about
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9,000 and that number is dropping because only large corporate operations can afford those quotas and
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they've squeezed out the small producers. New Zealand and Australia had supply management systems
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in the 70s, but they wisely got out of those in the 80s. Because they got rid of it, their dairy
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industries have flourished and both countries have turned into very successful exporters of
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agricultural products. Alberta could do the same. Defenders of dairy cartels try to claim that if
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we got rid of the wretched quota system, we'd suddenly be flooded with dairy products without
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regulations. That's a ridiculous and outright lie. Quality control standards have nothing to do with
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the price-fixing scheme and the standards won't change when the racket's dismantled. They also claim
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we'd be flooded with allegedly inferior American products if we got rid of the quota system.
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Again, it's a load of BS. The tariff system blocking American dairy goods has nothing to do with
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quotas. Americans' dairy products are neither inferior or dangerous, but if you really don't
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want them, just don't buy them. If we have a strong domestic dairy industry unbound by supply management,
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we won't need to import dairy products anyways. We can be exporters of everything from powdered milk
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to cheese to ice cream. We can compete. Supply management defenders are making the case that
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Canadian producers are so incompetent that if we got rid of the quota system, they'd go broke.
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Well, maybe some of them are. Let them go then. The strong will survive just as they do in every
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other industry. And no, we couldn't get rid of the system overnight. An addict has to be weaned from
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their drug of their choice. It might die in withdrawal. The system must be dismantled though
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over some years and in stages, and a degree of compensation must go to quota holders. There's no
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better time to start that process than now. Supply management benefits Quebec, thus no federal party
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will dare question it. If we want to break free, it has to be a provincial initiative, and we can't
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initiate it soon enough. So much like the pension plan, the RCMP collecting our own taxes, supply
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management's another policy where Alberta can step up and take control for itself. And with all those
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policies, when the federalists complain about Alberta standing up for itself, our response should be the
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same. What's she going to do about it? I mean, what are they going to do? Stop buying our milk?
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They already don't. Stop buying our oil? They already don't. Punish us with regional-based pet taxes?
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They already do. If Premier Daniel Smith breaks the dairy cartel in Alberta, it'll lead to the end of
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it across Canada, and everybody will benefit. But it has to begin with putting Albertans first.