Letter: supply meeting demand determines price

Canada needs to get rid of supply management.

Editor:

Is supply management an outdated concept?

A good example is the dairy and egg marketing boards. Canadians — through forced, government-mandated, retail-based subsidies — pay more for these products than those in the U.S.

A dozen eggs in the U.S. can cost you $1.50; compare this to Canada at $2.50; U.S. cheese around $6-7 for two pounds. Compare this to $10 in Canada. Milk, another Canadian staple, costs you around $4.50 compared to $3 in the U.S. Butter, $4.50 in Canada, is also $3 in the U.S.

Government supply and management policies protect the dairy industry, guaranteeing stable prices for farm incomes year after year.

So why are dairy products much cheaper in the U.S.? The U.S. subsidizes farmers up to $22-billion annually through general revenue.

Subsidies from general revenue tax all citizens at ‘incremental-to-income’ general taxation rates. Because Canada chooses to protect dairy farmers at the consumer level through supply and management controls the yearly monetary benefit received from the taxpayer through marketing boards is concealed.

This misleading user pay philosophy is detrimental to the poor.

Those on welfare or low-paying jobs, when using these products, subsidize the dairy industry at a high rate of taxation when compared to the salary of an average or high-income earner. Efficient user-pay systems operate best under free market conditions. Supply meeting demand determines price.

Canadians are increasingly looking at food sustainability issues, growing and supplying more food locally. To be successful local food systems need to supply a variety of products. In most cases, a smaller distribution area would allow consumers to purchase eggs, milk and cheese locally instead of from the other side of the country.

U.S. President Donald Trump is banging the wrong drum: NAFTA creates a cross-border flow of $1-million a minute or $2-billion a day. The annual $640-million dairy industry is an inconsequential factor.

That said Canada needs to get rid of supply management. Quality sells. Canadian cheese is far superior to the rubber that passes for American cheese and the watery butter Americans serve their consumers.

Elvena Slump

Penticton, B.C.

Just Posted

Williams Lake man, firefighter remembered by MP Todd Doherty in emotional speech

Family asks first responders to look after one another in wake of suicide, growing concerns of PTSD

Fresh faces, new information and new ranch enterprises

Columnist David Zirnhelt on local funding and projects

Incumbent city councillor Laurey-Anne Roodenburg hopes for four more years

Roodenburg has sat on City Council for the past 10 years

Cariboo Memorial Hospital redevelopment plan should be completed end of 2018

Cariboo Chilcotin Regional Hospital District hopes to meet directly with the project team for a direct update

CRD opens survey on 2018 wildfire response and impacts

The CRD closed its emergency operations centre this week

CUTENESS OVERLOAD: 2 sea otters hold hands at the Vancouver Aquarium

Holding hands is a common – and adorable – way for otters to stay safe in the water

Airline has ‘close call’ with drone while en route to B.C. airport

Jazz Aviation reported the drone sighting near Vancouver to the RCMP and Transport Canada

Tragic accident claims life of B.C. toddler

Fundraising effort has been created to help mom and family

B.C. nanny charged with sex abuse of 3 children

Saanich Police seek potential victims of Johnathon Lee Robichaud from Central Saanich

‘I’m no quitter’ on climate change issues, McKenna says at G7 ministers meeting

David Suzuki says if McKenna believes what she’s saying, she too should quit

VIDEO: Inside an eerily empty mall in Canada

Only seven of 517 retail spaces are open for business as the grand opening postponed to next year

B.C. wildfires burned large areas affected by mountain pine beetles: Experts

The mountain pine beetle epidemic affected more than 180,000 square kilometres in B.C.

Tens of thousands without power following tornado in Ottawa region

Hydro Ottawa says more than 170,000 customers were without power early this morning

BALONEY METER: Do Liberal policies mean a typical family is $2,000 richer?

MPs took to Twitter to talk how ‘typical’ Canadian families have more money due to Liberal policies

Most Read