Highlights
- Supply management delivers a stable supply of Canadian milk produced on farms here at home.
- Producing and packaging food in Canada strengthens food sovereignty and reduces dependence on other countries.
- Supply management gives farmers stability to confidently plan and invest in their farm, generating economic activity and jobs in rural communities.
Our Country. Our Milk. A Canadian success story.
Did you know that supply management is a Canadian success story? Canada adopted the approach for dairy in the 1960s following decades of market volatility. Its purpose was to meet domestic demand with milk produced on Canadian dairy farms while ensuring a fair return for farmers. Egg and poultry farmers officially adopted supply management in the 1970s and five sectors operate under supply management to this day.1, 2
It’s a framework that strengthens Canada’s food sovereignty: delivering a stable supply of Canadian dairy produced to some of the highest standards in the world while giving farmers stability they value to plan and invest for the future of their farms.
To better understand supply management, it helps to think about it in terms of three important pillars:
- Producing enough milk to meet Canadian demand
- Providing a fair and stable return for farmers
- Prioritizing food produced in Canada
1. Producing enough milk to meet Canadian demand
On more than 9,000 dairy farms across Canada, farmers work to produce a predictable supply of milk. The Canadian Dairy Commission, a crown corporation, studies market conditions and determines how much milk is needed to meet Canadian demand for dairy products.3 From there, dairy farmers’ organizations agree to terms and conditions that enable each farm to provide their share of Canada's predictable, steady supply of high-quality milk. This reliable supply helps processors plan efficiently and optimize their facilities and workforce, and produce enough dairy products to meet the needs of the Canadian market.
Why does this matter?
A predictable system based on demand helps consumers trust that the dairy they love will be available when they want it.
An efficient and balanced supply from farms to processors right here in Canada means Canadians meet the demand of Canadians. This is how we shape a resilient food sector, which brings benefits to many Canadians from farm to fork.
2. Providing a fair and stable return for farmers
Farmers sell processors the milk they produce at a price that includes consideration for the national average costs of production. This price is meant to ensure fair returns for efficient farms and is in effect for a year. Processors can rely on price stability for their milk input, but other costs may still fluctuate for processors, distributors and retailers, and will ultimately influence the final price of products.
While all farmers may access programs and loans to improve productivity, efficiency and food safety, supply management is designed to provide stable farm income without direct production subsidies.
In contrast, farmers in countries like the United States face the brunt of volatile dairy prices and governments are asked to step in and provide support to farmers. In effect, Americans pay twice for their dairy: once through their taxes and again at the grocery store.
Why does this matter?
Stability gives farmers predictability and confidence to plan investments in developing their farms. This helps family farms and rural communities thrive over the long term and strengthens Canada’s ability to produce its own food.
As Canada’s National Food Security Strategy puts it, “Supply management is fundamental to Canadian self-sufficiency for dairy, egg, and poultry products at stable prices. These high-quality products are produced and processed here at home, contributing to Canada's rural vitality and food sovereignty.”4
Local jobs in vibrant rural communities
Supply management sustains many jobs on and off the farm – including veterinarians, animal nutrition experts, feed and equipment suppliers, truck drivers, inspectors, processors, retailers and administrators – just to name a few!
Canada’s supply-managed sectors (dairy, eggs and poultry) support nearly 431,000 full-time jobs and contribute $45.1 billion to Canada’s GDP.5 Dairy itself sustains 270,000 jobs and accounts for $28 billion in GDP.6
High standards
Canadian dairy farmers meet some of the world’s most stringent standards on quality, the environment and animal care. Farmers often comment that the peace of mind that comes from supply management allows them to invest in forward-thinking practices and facilities to produce some of the best food on the planet, right here at home.
3. Prioritizing food produced in Canada
Canadian dairy farmers are here to serve Canadians first. Part of meeting Canadian demand is accounting for how much dairy is coming into Canada under trade agreements. A predictable amount of imports are allowed into Canada tariff-free under trade agreements, before foreign access to our market is limited. The objective is to help ensure Canada can rely on Canadian farmers and processors to meet its needs.
Why does this matter?
More than 9 in 10 Canadians believe it is important to ensure Canada has as much control as possible of its food supply.7 That’s food sovereignty. And Canadians are looking for homegrown food.
The vast majority of milk and dairy products available in Canada originate from family farms here at home and are processed in Canada too. Maintaining national food sovereignty and security is especially important in times of trade tensions and external pressures like supply chain disruptions, natural disasters or animal diseases. When farms and processors have a healthy domestic capacity, Canadians are less dependent on imported foods.
What supply management means for Canada.
While it can seem complex at first, when you think about it, what supply management means for Canadians is quite simple: supply management makes sure farmers can feed fellow Canadians and feed their families, too.
Learn more about supply management:
Sources
- Egg Farmers of Canada. Before and after supply management: How the system works for everyone. October 17, 2025
- Farm Products Council of Canada. Our history. October 14, 2025.
- Canadian Dairy Commission. Supply Management and the Dairy Industry. October 5, 2022.
- Agriculture and Agri-Food Canada. National Food Security Strategy. June 2026
- Kevin Grier Market Analysis and Consulting Inc. The 2023 Economic Impact of Dairy, Poultry and Egg Sectors in Canada. 2024.
- Ibid.
- Nanos Research. Canadians want control over their food supply and a firm defence of dairy farmers in trade negotiations. September 29, 2026.
