Canadian Dairy Commission

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Canadian Dairy Commission

The Canadian Dairy Commission (CDC) is a Crown corporation established in 1966 by the Government of Canada to coordinate the supply management system for the dairy industry in Canada. The CDC's mandate is to ensure that Canadian dairy farmers receive fair returns for their labor and investment while providing consumers with a stable supply of high-quality dairy products at reasonable prices.

History

The CDC was created under the Canadian Dairy Commission Act in response to the challenges faced by the dairy industry, including fluctuating prices and inconsistent supply. The establishment of the CDC marked the beginning of a structured approach to dairy supply management in Canada.

Functions

The CDC plays a crucial role in the Canadian dairy industry by:

• Setting support prices for butter and skim milk powder.
• Administering the national milk quota system.
• Coordinating the activities of provincial milk marketing boards.
• Conducting market research and providing industry analysis.
• Facilitating the export of Canadian dairy products.

Supply Management System

The supply management system, overseen by the CDC, is designed to match the supply of dairy products with consumer demand. This system involves:

• Production quotas: Dairy farmers are allocated quotas that determine the amount of milk they can produce.
• Price setting: The CDC sets support prices for key dairy products to stabilize farm incomes.
• Import controls: Tariff-rate quotas and import restrictions are used to control the volume of dairy products entering Canada.

Governance

The CDC is governed by a board of directors, which includes representatives from the federal government, the dairy industry, and consumers. The board is responsible for setting policies and overseeing the operations of the CDC.

Impact on the Dairy Industry

The CDC has had a significant impact on the Canadian dairy industry by:

• Stabilizing farm incomes and reducing price volatility.
• Ensuring a consistent supply of high-quality dairy products.
• Supporting the economic viability of rural communities.

Criticism and Controversy

The CDC and the supply management system have faced criticism, particularly from:

• International trade partners who argue that the system is protectionist.
• Domestic consumers who claim that it leads to higher prices for dairy products.
• Some economists who believe that it stifles competition and innovation.

Related Pages

• Dairy farming in Canada
• Supply management (Canada)
• Agriculture in Canada
• Canadian Food Inspection Agency
• Agriculture and Agri-Food Canada

See Also

• Crown corporations of Canada
• Canadian Dairy Commission Act
• Dairy Farmers of Canada