What is Supply Management?
Supply management, in place in Canada since 1971 for dairy production, is an agricultural policy that ensures a local supply of high-quality food while providing producers with a stable and fair income, entirely derived from the market—without government subsidies or surplus dumping in third-country markets. Alongside collective marketing, it represents a concrete model of food sovereignty for dairy producers and Canadian citizens while also contributing to the country’s food security.
It is a sustainable agricultural model that promotes the consumption of local products while preventing food waste.
Quebec and Canadian producers manage their production levels to meet all domestic market needs. Producer representatives from all provinces, in consultation with the industry, establish an annual production target known as the marketing quota.
When production exceeds this target, producers are responsible for the consequences. The revenue from all milk sales is pooled among producers, who receive an average price based on their monthly milk deliveries. The quality of the milk they market is a major concern for producers, and various programs aimed at improving it are managed by the organization.
Producers also invest over $47 million annually in research, promotion, and advertising for milk and dairy products.