Supply Management: Cementing Canadian Food Security

Like all Canadians, our farmers believe that individuals and families should have access to nutritious high-quality food, so that they can pursue a healthy lifestyle. In Canada, 12% of households are food insecure and struggle to get adequate nutrition.¹

Dairy farmers in Canada produce high-quality, nutritious milk under stringent standards, right within our own borders. This milk is then transformed by local processors into thousands of dairy products that Canadian consumers have come to know and love.

Feeding the Nation:  Food Security and the Supply Management System

Rather than looking outward for our food, a strong Canadian dairy sector means we can be less dependent on foreign countries to meet Canada’s food requirements.

One of the ways Canadian dairy farmers ensure a consistent supply of milk at stable prices is through an agricultural framework called supply management. The primary objective of that system is to produce enough milk to meet demand.

Under supply management, farmers work collaboratively with provincial milk marketing boards, dairy processors and the Canadian Dairy Commission to ensure enough milk is produced to meet demand.

Why does this matter?

• Supply management has been weakened by recent trade deals, which provide foreign countries greater access to the Canadian dairy market.

• Overreliance on dairy imports puts ownership of our food supply in the hands of foreign suppliers and governments. That means we are more vulnerable to global issues beyond our control, like economic boom-and-bust, natural disasters, and even conflicts between governments.

• Imported dairy products may not follow the same stringent production standards as food produced in Canada – this is especially true when it comes to dairy. For instance, all Canadian milk is produced without artificial growth hormones; there are no such guarantees with the milk produced in other countries. Canadian dairy farmers also follow rigorous high-quality and safety standards.

• Many dairy farmers in Canada are implementing practices to further protect the environment as the sector works towards reaching net zero by 2050. For the dairy sector, “net zero” means achieving a balance of emissions produced and those reduced or sequestered on farm.

Supply Management in Action: Dairy and the COVID-19 Pandemic

The COVID-19 crisis was a stark reminder of the responsibility of countries to ensure their populations have reliable access to safe, nutritious foods. It also showed us the weakness of a model that relies disproportionately on our traditional trading partners for supplies.

When the pandemic first struck in Canada, our sector was faced with sudden, massive fluctuations in demand for milk and dairy products.

Dairy farmers and processors had to adjust quickly to the spike in demand created by the hoarding of dairy products, followed by declines in demand as restaurants and other foodservice-reliant businesses were forced to close.

Thanks to the coordination and collaboration inherent under supply management, the dairy sector was able to quickly adjust to an unpredictable landscape in a relatively short period of time. The dairy industry continues to meet changing demands as efficiently as possible.

Giving Back To The Community

Canada’s dairy sector generates ample economic activity – especially in rural communities, which need it most. The sector creates the equivalent of 195,000 full-time jobs while each year contributing $19 billion to our GDP and $3.25 billion in tax revenues.

Dairy farmers and processors across the country also donate millions of dollars’ worth of products to Canadian food banks every year. During the COVID-19 pandemic, dairy farmers and processors donated more than $10-million worth of dairy products to local food banks.