When an industry struggles financially, it becomes necessary to re-evaluate how business is done. The beef industry has struggled since the discovery of BSE in 2003 and the pork industry has felt the financial pain from the H1N1 pandemic. One solution being circulated in the coffee shops across the country is to make either of these industry’s supply managed. At first glance, many people look at the financial stability of the Canadian dairy and chicken industries and conclude that “this could be us.”
I asked Kevin Grier, Senior Market Analyst, George Morris Center, to comment on the potential of this actually happening based on some of their initial research.
Should Canadian Pork and Beef Be Supply Managed? – Kevin Grier
In my opinion neither the pork or the beef business in Canada will ever become supply managed for many of the same reasons that Kevin discusses in the interview. Never mind that I don’t think you would ever get the domestic stakeholders to buy in, but the bigger obstacle is getting this sort of massive change past the WTO. Canada will be under growing pressure to absolve its dairy and chicken quotas in the future so adding to the list of supply managed industries is slim at best in today’s environment.