Economic Trade-offs of Transition
Good News, Canada’s Production System Supports Transition
Supply Management is a system built on three pillars:
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2.
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Production discipline helps balance supply and demand, supporting stable markets and prices
Pricing mechanisms ensures farmers receive prices that support a fair and reasonable market return
Through import controls, the Canadian market has a stable and predictable level of imports.
Result
This system creates a supportive economic background for transition by stabilizing prices and income when production is facing disruptions or market volatility due to things like avian flu, or, more relevant, infrastructure transition. The market stability provides financial security for farmers, which enables them to more confidently invest in changes that improve practices at their farm (Pelletier et al,. 2018).
Check out the flow chart below to understand the ripple effects of market regulation on the egg industry. This figure walks through the intensification of egg production and its corresponding challenges that occurred with the invention of the battery cage in the 1920’s.
