Canada should gradually reduce its reliance on supply management for dairy and poultry farmers said a new report from the Organization for Economic Cooperation and Development (OECD).
Its advice is contained in a report on agriculture policies of OECD members around the world.
It said Canada’s supply management system is hindering market responsiveness and discouraging innovation.
The report said production quotas should be gradually increased and price supports (i.e. tariffs) reduced.
It said Canada’s support for agriculture is heavily weighted to dairy and poultry and is the key reason why Canada’s overall agriculture tariffs are 14 per cent compared with an average of two per cent for OECD members.
Tariffs for dairy and poultry imports to Canada average about 250 per cent.
