28 Oct 09- Supply management not the answer for cattle and hogs

With the cattle and hog sectors facing tough times, some are suggesting a move to supply management. You don’t hear this discussion as much in Western Canada, but you certainly hear it in Ontario and Quebec. On the surface, the idea seems attractive. Serve only the domestic market the way it’s done in dairy and poultry. Set prices that give producers a reasonable return. It sounds simple, but it isn’t. I don’t always agree with the George Morris Centre based in Guelph, but the centre has just come out with a report that outlines all the pitfalls of trying to push cattle and hogs into supply management. First of all, the industries would have to be much smaller. We produce far more than we consume domestically. This is compounded by the fact that certain cuts of meat have little demand in Canada. Most of the tongues and hearts would probably end up going to rendering plants at a cost. The George Morris Centre report also outlines Canada’s obligations under the WTO and NAFTA. If we block imports, Canada would need to pay compensation. Interprovincial trade would also be a mess as provinces would wrangle over market share. Supply management is not the fix for what ails the cattle and hog sectors. This debate actually detracts from strategies that could make a difference. I’m Kevin Hursh.