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Not Just a Talking Head
February 2005
I’ve just finished reading La gestion de l’offre dans le secteur laitier, un mode de régulation toujours pertinent, [Translation: Supply management in the dairy industry, still a pertinent regulatory tool] a study conducted by Daniel-Mercier Gouin, a professor with the Université Laval. It’s quite good. The title says it all – un mode de régulation toujours pertinent [Translation: Still a pertinent regulatory tool] – as for its style, it sure ain’t American.

In fact, the style is inherently French, just like its author Daniel-Mercier Gouin. The grandson of two former Quebec premiers (he is related to Honoré Mercier and Lomer Gouin, which explains the aristocratic hyphen, which links his first names Daniel and Mercier). He comes from good family stock and has just returned from a year spent studying in Paris, and he brings with him material that is both excellent and extremely pertinent. I very much like how he was able to inject a little cheekiness into his subject matter. A very French style of writing, I would say.

So, what makes his brief so different? Three things. First, he responds to the question that consumers have been pondering for a long time now: is the dairy monopoly shamelessly exploiting them? The answer is no! The professor points out a few charts to illustrate this point and declares that New Zealand and Australia – blessed with free trade and the freedom to produce – are the two countries exhibiting the highest increases over 20 years! And of course, the three countries where supply management is in effect – Canada, France, and the Netherlands – have, in the past 20 years, maintained the lowest rate of increase in consumer pricing!

Then, a little deeper into his study, Mr. Gouin soberly confirms what we’ve always known : that Canadian dairy producers, when compared with others around the world, get the best price and especially, the most stable revenue, which is the very purpose of a good dairy policy.

Finally, the professor compares the amount of money spent by various countries to support their dairy industry. Do we, the best country in the world, spend too much?

Not at all! Not only is the income of Canadian producers well protected but Canada is one of the countries where there is the least amount of government support. I guess that should put a cork in a few stubborn old fools!

After reading this kind of information what more can I say? Well, although this is all good news, I still feel like I should warn you, play the devil’s advocate, plant a little doubt. Although the hen looks good and seems healthy it won’t always lay great big eggs.

There are a lot of foxes waiting to raid the hen house. The prevailing trend in today’s western world is to deregulate and globalize. And a few totally ridiculous fools, like those from the Montreal Economic Institute persist in multiplying their efforts to discredit the Canadian system, in the name of competitiveness and of tired and abused consumers. They are dangerous and influential.

WTO could also ruin everything. It hasn’t said the last word on opening up international trade markets. And the latest news from Geneva isn’t reassuring. The tariffs protecting our borders are still at risk.

Moreover, there’s the issue of price quotas that was, quite fairly, brought up by Robert Fournier, analyst with Solidarité rurale. The man has a point. I know he got on your nerves with this story, but the question needed to be asked: are quota values fed by massive debt reasonable? To invest everything on paper and so little in new technologies, may adversely affect our future competitiveness.

I’ll stop now. I don’t want to ruin your fun: for the one time a high-level university professor supports your cause, may as well enjoy this brief moment, because such moments are few and far between.
 

Claude Lafleur, agr.
Chief executive officer
La Coop fédérée
Email: claude.lafleur@lacoop.coop
Fax: (514) 383-7027
 



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