Lots of heat but not much light on supply management

It seems hardly a week goes by without someone pronouncing for or against supply management. While there are some reasoned arguments, there is also a lot of malarkey.What's driving the debate now is the Trump Administration trying to get Canada to solve the U.S. dairy surplus woes. The uproar continues the attacks on supply management that have gone on for decades and have stymied what it needs the most—a top to bottom review to see if there are ways to improve it.The dairy management system is coming up to its 50th anniversary and poultry, which few commentators seem to be aware of, is well into its 40s. It was set up in a response to conditions in the late 1960s and early 1970s. It has worked well for producers and in many ways consumers as well.During all that time, there hasn't been a full and thorough review of the operation of the production system. Meanwhile the dairy and poultry sectors have been pecked at so often by economists and some politicians that they are understandably defensive and suspicious of any suggestions things could be done differently.However the transportation sector, which is as complicated as agrifood, has seen several reviews of its basic policies in recent years and each one is a good example of how a critical examination could probably bring changes to supply management to fit the 21st Century.First was the review of the Canada Transportation Act by a group headed by David Emerson. It is the basis of the Transport 2030 policy the federal government is implementing. Next was the review of marine pilotage by Marc Gregoire and the latest is railway safety.It can be done. A review would hear from supporters, opponents and interested observers and look at what's happening in other countries. It could take the time to gather information and consider different approaches.The issue that generates the most noise is the cost of the dairy products in the grocery store. Most comparisons of Canada versus the rest of the world always seem to be based on the assumption that only Canadian producers are supported. The study by Peter Clark for Dairy Farmers of Canada released earlier this year painted a graphic picture of the subsidies available to American dairy farmers. The agriculture committee of the European Parliament has found that 49 per cent of dairy farm income in Europe comes from subsidies.What should a review of supply management be tasked to consider? For starters let's look at how have dairy and poultry farms evolved since supply management began in the 1970s compared to grain, livestock and horticulture operations.And have international markets, especially in dairy, which led to their creation, changed significantly since then. One suspects not, which raises the fundamental question of why we would abandon supply management in favour of hefty government subsidies. Let's bring some badly-needed context to arguments about supply management.The review could compare that status of Canadian dairy and poultry producers to their counterparts elsewhere. Also how do they compare with the livestock, grain and horticulture producers across Canada in terms of financial viability and sustainability?While a lot has been said about supply management over the years that a review could consider, two articles from Christian Farmers of Ontario in July and studies by Al Mussell and Douglas Hedley get to the heart of the issues and form a good starting point for a review.The review should hear from supporters and critics in the farm community and rest of the population with the goal of producing a factual picture of supply management.As high consumer prices are an endless complaint, are there reforms to supply management that will bring down prices or slow future increases without damaging producers and processors?Are quota values too high and does this keep out new entrants in favour of established producers? One idea is to set in motion a 10-year gradual reduction in quota values.What would ending supply management do to rural and small town Canada? Is moving to mega dairy and poultry farms good for the environment. If Canada's goal is to become the No. 2 world food exporter, could there be a role in there for dairy and poultry? Could we even have a rational discussion about Class 7 milk?Canadian dairy and poultry production is only a problem for countries producing beyond the ability of the consumer demands of foreign markets.As the famous TV cop Joe Sergeant used to say, “The facts, Mame, just the facts.” The person or persons conducting a review would have to launch it without a preconceived outcome. Imagine it might even lead to a rational discussion on supply management.Alex Binkley is a freelance journalist and writes for domestic and international publications about agriculture, food and transportation issues. He's also the author of two science fiction novels with more in the works.