What does a TRUMP presidency look like?

[Barrister]

Surely you're heard the phrase "supply management" by now?

Producers of dairy and eggs are given production quotas.  They can only sell that much, and it guarantees them a certain price.  Great for producers, not so much for consumers.

That explains the high price in Canada.  It does not explain the exports to the US.

Well any sales into the US market are on the open market, so need to compete with existing US prices.

I believe Canadian dairy exports to the US are relatively modest.

[Admiral Yi]

The only logical inference is the Canadian Dairy Board eating the cost of the exports.

[Barrister]

The only logical inference is the Canadian Dairy Board eating the cost of the exports.

Uh, no?

You're a producer.  You produce enough for your quota.

You have some excess.  You can't sell it in Canada.  So you sell it for whatever you can to the US, since otherwise you just dump it out.

Remember I'm here to explain Supple Management, not defend it.

[crazy canuck]

The only logical inference is the Canadian Dairy Board eating the cost of the exports.

Nope, there are other explanations. Think about the milk that is produced, but not saleable in Canada because of limits set by the marketing boards. Also the marketing boards don't have any assets themselves, so I have no idea how they would eat anything.

[Grey Fox]

The only logical inference is the Canadian Dairy Board eating the cost of the exports.

Surely you're heard the phrase "supply management" by now?

Producers of dairy and eggs are given production quotas.  They can only sell that much, and it guarantees them a certain price.  Great for producers, not so much for consumers.

That explains the high price in Canada.  It does not explain the exports to the US.

Cows are fickle. They don't respect cotas and sometimes produce more. Some producer exports those surplus to the USA. It's better than just dump it out.

Unlike BB, I will defend our supply management system to the death.

[Admiral Yi]

Unlike BB, I will defend our supply management system to the death.

Awesome.

Does Canada ever run out of milk? Ever have milk left over?

[PJL]

I don't get how Canada exports dairy to the US but a gallon of milk costs six times as much in Canada as it does in the US.

It isn't because the Canadian one in an imperial gallon, which as we all know is at least 5 times bigger than a US gallon.     

Yeah, a US 10 gallon hat is really only a 5 gallon hat here.

[HisMajestyBOB]

Unlike BB, I will defend our supply management system to the death.

Awesome.

Does Canada ever run out of milk? Ever have milk left over?

Of course, that's what created their national cheese reserve, which they tap into to keep the price of poutine stable.

[Grey Fox]

Unlike BB, I will defend our supply management system to the death.

Awesome.

Does Canada ever run out of milk? Ever have milk left over?

We don't run out. Lots of milk gets dumped.

[Jacob]

Uh, no?

You're a producer.  You produce enough for your quota.

You have some excess.  You can't sell it in Canada.  So you sell it for whatever you can to the US, since otherwise you just dump it out.

Remember I'm here to explain Supple Management, not defend it.

You sure about that?

Once upon a time I was doing research for an "export Canadian milk powder to China" business. I was told - more than once - that our supply management system meant that you still needed quota, and therefore it would be a challenge to find farmers to source product from.

I had assumed what you state, that production for export could not require quota.

So basically what I'm asking is how confident you are in what you're saying that export does not require quota. Because I hope you're correct.

[HVC]

My understanding, which may be faulty, is that farmers were reluctant to produce excess for export because if demand fell they're SOL since they can't sell domestic and have to dump at a loss.

[Grey Fox]

You don't get to only be part of the export market.

[Jacob]

My understanding, which may be faulty, is that farmers were reluctant to produce excess for export because if demand fell they're SOL since they can't sell domestic and have to dump at a loss.

Which is totally legit, but something that could probably be mitigated with proper contracting and relationships.

The (potentially misunderstood) requirement for quota on top of that would be an additional obstacle to navigate.

[Jacob]

You don't get to only be part of the export market.

Do you know why that is?

[Grey Fox]

You don't get to only be part of the export market.

Do you know why that is?

I don't know the motivation behind that rules but I would wager it is so that we don't have farmers in the market for cows, feed, etc that do not participate in the local market.

https://www.international.gc.ca/controls-controles/prod/agri/dairy-laitiers/index.aspx?lang=eng

If you feel like going thru that rabbit hole tonight.