OFA Commentary #4104
Current negotiations at the World Trade Organization have left some of Canada’s supply managed producers questioning their future. They want their investment dollars protected and are anxious to receive steadfast support that will maintain Canada’s marketing boards and their powers to manage supply.
The Ontario Federation of Agriculture and its national partner, the Canadian Federation of Agriculture, have always stood beside the producers’ right to choose marketing systems, frequently taking a lead role at negotiations to protect the rights and interests of supply managed producers. This support continues, and OFA wants its partner organizations that operate under supply management to know the support remains strong.
Supply managed commodities have long provided a stabilizing impact on the country’s agricultural economy. When world influences have played havoc with prices for grains, oilseeds and meats, producers with an established domestic market have survived. This ability to survive world trends has been a positive influence in faming communities across Canada.
Because producers under supply management have more predictability in their balance sheet, they are better equipped to meet the ever changing demands of consumers and society’s requirements for environmental protection. Because they have a long-term view of their finances under supply management, they are able to work environmental improvements into their capital improvements.
We know our federal and provincial governments continue to support our supply management systems. They recognize the importance of the stabilizing influence these commodities provide to the rural economies across Canada. OFA is pleased our governments have remained steadfast behind our supply managed marketing boards during WTO negotiations.
Other nations seem anxious to dismantle Canada’s supply managed systems, hoping to gain greater access to Canadian markets. We have seen the wild price fluctuations dairy producers in the United States must contend with. They don’t enjoy the stability of supply management and the assurances of being paid enough to cover costs of production.
This is what makes Canada’s supply managed systems so important, not only to producers of those commodities, but to other agricultural producers and food processors in the country.
As an example of this, Parmalat, one of the world’s largest dairy processors, operates in more than 20 countries, and finds its Canadian operations among the most profitable. This is because they know what their input costs are going to be, allowing them to keep better control of their bottom line.
When supply managed producers survive and thrive, they are able to buy feed products produced by other farmers in Canada. It only makes good sense for Canadians, through their governments, to continue their strong support of the country’s supply managed systems.
OFA knows and appreciates the value of the contribution this country’s supply managed systems make to our agri-food sector. Doing everything possible to support these producers during WTO negotiations seems like the natural thing to do.
~Paul Mistele~
Ontario Federation of Agriculture Executive Committee