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Supply Management Discussed for Beef and Pork


October 30, 2009
By George Morris Centre

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October 30, 2009 – The George Morris Centre has released a report that explores the implications of supply management for Canada's beef and pork sectors.

October 30, 2009 – The George
Morris Centre has released a report that explores the implications of
supply management for Canada's beef and pork sectors.

The report, Supply Management in Beef and Pork: Understanding the Broader Context, is available on the George Morris Centre website

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The following is an excerpt from the report: 

The Canadian beef and pork segments are experiencing a period of severe and prolonged difficulty, with exceptionally low margins, mounting financial liabilities and general economic stress.  These issues relate to a range of factors, including softened demand for red meat, relatively strong Canadian currency, mandatory Country of Origin Labeling in the US, and higher feed costs, driven in part by demand from ethanol manufacturing.

In this environment of desperation, there appears to be a renewed interest in supply management and measures involving licensing of production capacity.  However, as part of a much-need evaluation of alternatives in beef and pork, the full implications of supply management schemes must be understood to allow the discussion to evolve.  Thus, the intent of this paper is to consider supply management as an alternative to the existing mechanisms in beef and pork marketing.  The objectives are as follows:

·  To provide an overview of the initial conditions that led to the adoption of supply management

·  To consider the marketing conditions favorable to a supply management scheme relative to those in beef and pork

·  To consider the trade policy instruments necessary for a supply management scheme in beef and pork

·  To assess the efficacy of a supply management scheme for beef and pork