Winnipeg Free Press (Newspaper) - May 16, 2015, Winnipeg, Manitoba C M Y K PAGE B10
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R EADING the newspapers lately,
you’d get the impression the fate
of the world, or at least the Trans
Pacific Partnership
Trade talks,
hinges on whether
Canada will surrender
on supply
management for
dairy.
Pundits cite
the powerful
dairy lobby as a
major roadblock,
particularly in
an election year.
Really? Even if
you stuffed all of the country’s 12,000
dairy farmers into a few ridings and
added in their family and friends, their
clout is hardly enough to have politicians
quaking in their seats.
A more plausible reason for why
successive federal governments have
maintained support for supply management
might be because the sector
punches above its weight economically.
An analysis by the Dairy Farmers
of Canada shows the sector creates
215,000 jobs in Canada and contributes
$ 18.9 billion to the economy.
That puts it pretty much on par
with the canola industry, in which the
production of 43,000 farmers creates
249,000 jobs and contributes $ 19.3
billion to the GDP. It’s well above the
pork sector, with 7,300 producers
creating 45,000 jobs and contributing
$ 3.5 billion.
The countries that are most critical
of Canada’s supply management are
competitors that are hardly squeaky
clean when it comes to support for
dairy. “ Every single dairy sector
and most egg sectors are supported
in some fashion by the public sector,
except Australia,” Bruce Muirhead,
the University of Waterloo’s associate
vice- president, external research told
a Senate committee Tuesday. New
Zealand doesn’t pay subsidies, but it
set up a single- desk exporting agency
for dairy. Australia’s sector is nonsubsidized
and struggling. The U. S.
offers producers heavily subsidized
insurance.
“ The genius of the Canadian system
lies in part in the fact that its farmers
are not subsidized by government,
while still providing an essential agricultural
commodity at a reasonable
price for consumers,” Muirhead said.
Farmers produce only for domestic
consumption in exchange for protection
from imports and guaranteed
returns. He said the system is as
“ rational and necessary” as when it
was first implemented in the 1970s.
“ Indeed, the case is more solid presently,
given the global volatility in
agricultural prices and the difficulties
farmers outside the supply- managed
sectors face in ensuring the sustainability
of their operations.”
Muirhead’s comments coincide with
research that shows countries that rely
on food imports are more vulnerable to
supply and price shocks.
“ Our Canadian system hits all the
proper markers: food security, food
sovereignty, traceability and proper
pricing for consumers, with the result
of smaller farms with less adverse environmental
impact as well,” he said.
The Canadian system balances the
costs and rewards of a stable supply.
True, the U. S. has singled out Canada’s
protection of dairy as a major
stumbling block to a successful negotiation.
This, from a country that doesn’t
yet have the negotiating authority it
needs from Congress to even cut a
deal — far from it. This, from a country
that continues to ignore a string of
international tribunal rulings saying
its country- of- origin labelling rules on
meat are protectionist and artificially
restrict access to its market.
If the system is opened up, “ we
would be flooded with American milk
and eggs,” Muirhead said. “ I think it
would spell the end of the Canadian
( dairy) industry and the Canadian egg
industry in a significant way.”
But U. S. threats that Canada could
find itself locked out of the TPP are
enough to get the grain, oilseed and
other livestock farmers in this country
on board with a campaign urging
negotiators to do whatever it takes to
conform with the ‘ free’ trade agenda.
The latest Canola Council of Canada
release cites the potential for increasing
canola exports by $ 780 million
with a TPP deal. That doesn’t factor
in the potential cost to a $ 525- million
domestic market selling canola meal
to the dairy sector.
The point is, Canadian agriculture
won’t get ahead by trading one sector
off against another.
Laura Rance is editor of the Manitoba
Co- operator. She can be reached at:
laura@ fbcpublishing. com
Pitting one sector against another hurts everyone
LAURA
RANCE
RURAL REVIVAL
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