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I understand your comments, you seem to feel there would be fewer feed
mills if we didn't have SM (Supply Management). Please explain your
logic in the greatest of details.
Based on research that I have done (most on chickens, some on eggs, a
tiny bit on other SM commodities), which is fully described on SFPFC's
Blog, Canada has only 1.4% of the international chicken market for OECD
nations. The US exports about 18% of its chicken, but SM holds us back
from exporting much of anything.
Our Canadian domestic prices for chicken are 2 to 3 times higher than
prices in the international market. Virtually nobody would buy our
Canadian chicken exports at the price that Canadians are forced to buy
them at.
If Canadian SM producers were to drop their prices to match the
prices of our international competitors, we could gain significant
market share on the international markets. However selling
internationally at prices that are half to one third of domestic prices
is the definition of "dumping" which is illegal under NAFTA and WTO and
GATT and other trade agreements.
If SM didn't exist, Canadians would likely pay a lot less for their
SM products, as I doubt the rest of the world would suddenly start
charging 3 times more so as to match crazy Canadian prices.
If we worked hard, we would eventually regain our competitiveness in
SM products (ie. in the next 20 years, for we are close to invalids in
SM products today, compared to the rest of the world).
Once we regained our competitiveness, continued hard work could
eventually earn us up to 50% market share for SM products in OECD
international markets.
With 50% OECD international market share, we would have to raise 5
times more chicken than what we currently raise in Canada today.
If we raised 5 times more chicken in Canada, I would assume there
would be logic in having that huge extra demand for chicken feed
produced in Canada, close to the source of the input crops, or close to
the end user of the feed produced. That would mean a significant
increase in operating capacity of current feed mills in Canada, or the
building of many new feed mills, perhaps up to 5 times more than what
exist today.
Therefore it would seem that SM has killed off up to 80% of the feed
mills that would have been built (or continued to exist) than under a
non-SM system.
Oilseed and grain farming is the largest farming income producer in
Canada, about 32% of the total farming income for Canada. That's big
GDP for Canada. I think these grain+oilseed farmers would welcome the
opportunity to grow and sell 5 times more grain, if they could.
Unfortunately, SM will never allow that opportunity to be realized. SM
farmers have a death grip on the throats of most other farmers.
If you (or others) have other facts and logic to support your prior
statement, please share it with all of us so we can learn and better
understand.
If you don't supply your logic, I believe it is fair to assume that
you accept the above data and logic, and have retracted your prior
statement.
Glenn Black
Small Flock Poultry Farmers of Canada
We'll have to wait and see if we get any response, or additional facts that support alternative viewpoints.
Sorry, but I couldn't let that stand without a response. Here is my response:
We'll have to wait and see if we get any response, or additional facts that support alternative viewpoints.