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Up to 80,000 jobs would be lost if Canada gives up supply management: report

Canada's egg and chicken producers are asking the government not to use supply management as a bargaining chip in NAFTA talks; the risks are too great


Montreal – La Coop fédérée had a warning for negotiators of the North American Free Trade Agreement: “the Canadian supply management system should not be used as a bargaining chip.”

The company released a statement saying that removing supply management would seriously harm economic and social impacts for many parts of Canada.

La Coop fédérée, along with Exceldor coopérative, Burnbrae Farms, Nutrigroupe, the Fédération des producteurs d’oeufs du Québec, Les Éleveurs de volailles du Québec and the Producteurs d’œufs d’incubation du Québec commissioned a report from PWC Canada that found “between 58,000 and 80,000 jobs are threatened in Canada in the event that the supply management system disappears.”

Consequences

According to the study, says the statement, one of the effects of not having supply management would be “far fewer products from local producers will be available to consumers.”

Another effect would be “a market share loss of 80% to 90% of Canadian egg production, which will leave them with 10% to 20% of the current market, whereas the market share for chicken production may decrease by 40% to 70%.

The organizations also predict that the “vast majority of the Canadian turkey industry may disappear.”

Canadian GDP would experience a decrease ranging from $4.6 billion to $6.3 billion.

Consumers

Consumers on the other hand may see prices drop but the decrease will be “moderate,” say the organizations.

Consumers will see more eggs and chicken from the U.S. flooding the Canadian market; and provinces will likely lose egg and chicken production and that also means the loss of jobs.

To read more on the report, which is called Supply Management in Egg and Poultry: The Economic Impacts of Changes to Canada’s Supply Management System, click here.


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for Up to 80,000 jobs would be lost if Canada gives up supply management: report
  1. Louise Desilets says:

    Supply management have for consequences that export to the US is at the lowest, because they only export the surplus produce in Canada.
    With no Supply management, doors will be open both ways, not only for the US to enter into Canada but Canada to export to the US. What a tremendous business opportunity! Why didn’t study the potential of offering an original Canadian Brand based on Quality, Taste, Sustainability and Social Responsibility, etc??
    All other Canadian agricultural sectors compete with the US, why can’t they? And Yes we eat local Canadian carrots, corn, potatoes, etc. why it would change for the chicken and eggs? Consumers are asking for local and consumer is King. That will take some adjustments for sure, isn’t what we all have to do as business ?

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