The Courier & Advertiser (Perth and Perthshire Edition)
Hogan urged to take new approach to dairy crisis
MILK PRODUCTION: Canadian supply management system advocated
EU Farm Commissioner Phil Hogan has been urged to adopt a supply management system for milk production similar to the one used in Canada.
Jan Slomp, president of the Canadian National Farmers Union, has written to Mr Hogan encouraging him to take on the Canadian-style supply management system to end the European dairy crisis.
He said: “Canada’s unique institution is called supply management, and it protects the interests of dairy farmers, processors, and consumers without drawing upon the public purse.
“It provides farmers a fair return for their labour, management and investment through cost-of-production pricing; dairy processors receive a reliable supply of milk at predictable prices; consumers receive high quality, wholesome dairy products at reasonable prices and are never faced with shortages.
“The whole system runs without a penny of government subsidy payments.
“The supply management system embodies subsidiarity, democracy, good jobs and fair livelihoods,” he added.
Each Canadian province has its own milk marketing board run by farmers elected by their peers. The parameters of the boards’ authority are defined by federal legislation, along with each province’s law and regulations.
The dairy sector offers farmers a “decent, predictable livelihood” which, Mr Slomp said, allowed them to invest in environmentally-friendly technology, use sustainable management practices, and employ local workers at “good living wage rates”.
The supply management system rests on a foundation made of three pillars: import controls, production discipline and cost-of-production pricing.
“Each pillar is necessary,” Mr Slomp said.
“We must control the imports (via tariff barriers) in order to accurately predict the amount of dairy products needed by our market.
“This also means that our dairy market is not buffeted by the political and economic vagaries of other countries’ markets which are outside of our control.”
Farmers must accept mandatory production discipline so they provide enough, but not too much, milk for the country’s needs.
Mr Stomp said they were willing to limit production because the price they receive per litre was determined annually through a cost-of-production formula that encourages efficiency.
“With these basics in place we continue to have a dairy sector with average farm herd size that does not stress local ecosystems or animal welfare,” he said.
“Dairy farmers’ income stability often provides an economic anchor in their communities when other agricultural products or industries experience volatility and precarious incomes.
“Thus, our supply management system contributes to rural employment, quality of life and social cohesion in addition to its economic contributions.”