Abstract
In recent years, Canada has witnessed a rapid growth in short food supply chains. As in other countries, such marketing channels have emerged in Canada in response to a growing demand among consumers for fresh, local products. However, a unique feature of Canadian agriculture is that dairy, egg, and poultry production are under supply management. The government requirement for producers in these sectors to purchase a quota ensures that output matches domestic demand. Until recently, though, little attention had been paid to how this system affects the development of short food supply chains in the country. The purpose of our study is to examine this emerging issue. The results of our policy analysis suggest that small farmers in Canada face multiple challenges when seeking to produce and market specialty products that are under supply management. Furthermore, the cost of entering supply-managed sectors for producers varies as each province is responsible for establishing its own quota exemption limits, minimum quotas, and new entrant programs. Our study indicates that supply management policies have important implications for local and regional food system development and for food diversity in Canada.
Highlights
Our study indicates that supply management policies have important implications for local and regional food system development and for food diversity in Canada
As in other countries, Canada has witnessed in recent years a rapid growth in the practice of farmers directly marketing their products to customers through short food supply chains
Research findings suggest that short supply chains contribute to the renewal of Canadian agriculture as many new farmers rely on such local outlets to sell their products (Laforge, Fenton, Lavalée-Picard, & McLachlan, 2018)
Summary
Canada has witnessed in recent years a rapid growth in the practice of farmers directly marketing their products to customers through short food supply chains. Research findings suggest that short supply chains contribute to the renewal of Canadian agriculture as many new farmers rely on such local outlets to sell their products (Laforge, Fenton, Lavalée-Picard, & McLachlan, 2018). In Canada, poultry (chickens and turkeys), egg (table and hatching eggs), and dairy (cow’s milk) production are under supply management. In each of these commodity sectors, quota policies ensure that supply matches domestic demand by controlling output, setting prices according to production costs, and limiting imports (Goldfarb, 2009; Painter, 2007; Schmitz & Schmitz, 1994). While the effect that this system has on the growth of short supply chains is considered an important research priority (Blay-Palmer et al, 2013), the topic has received relatively little attention until recently.
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