Ontario Goat is working on how best to apply funding windfall

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Comments

One has to wonder how this company/co-op could ever survive under and with the corruption of supply management ?

Not easy but it does. Ethically.

Strange thing is well managed processors in Canada have higher profitability than in the US and most countries.
Some expanded internationally financed by Cdn profits. Others lost a lot of money and retreated to Canada again.
Price stability and low transaction costs really helps profits.

It's only natural that because of the growth limitations imposed by supply management's:

(1) rip off prices imposed at the farm gate
(2) inability to increase sales via exports

that dairy processors appear to enjoy higher profitability in Canada than elsewhere. However, price stability means nothing if you can't grow because of statutory limitations such as those imposed by supply management.

In addition, the above poster is conveniently ignoring most, if not all, of the componentry of the cost/volume/profit equation, particularly the point about how increased volume helps lower prices for, and increase purchases by consumers, a point always deliberately ignored by supply management supporters.

In particular, supply management supporters always ignore the obvious point that if supply management didn't charge such exorbitant prices at the farm gate as well as effectively thwart exports, processors would be able to make just as much total net income, but would be providing more product to consumers at less money because their fixed costs would be met by more units of production.

The notion that price stability and low transaction costs provide more benefit to Canadian dairy processors than the ability to use price to increase sales domestically and internationally and be able to do so at economies of scale which promote, rather than deter efficiencies is just another load of self-serving "everything for us, nothing for anyone else" codswallop from supply management supporters.

Stephen Thompson, Clinton ON

The Canadian dairy processing sector is like a 67-year-old farmer with nobody in the next generation to take over - therefore, there's no need to expand, there's little need to be buying bigger machinery and there isn't the need to put money back into the business to make it more efficient but the objective is, instead, to maximize cash flow (dividends).

The Canadian dairy processing sector is facing exactly the same situation - thanks to supply management there is no possibility of growth in either the domestic or export market so there is no absolutely no need to continually plow money back into the business to prepare for growth, or even to improve efficiency.

Therefore, while price stability and supposedly low transaction costs are proclaimed by supply management supporters to be a good thing, they are a "kiss-of-death" for any business when they come as part of a package which includes no possibility of growth, a truth supply management supporters studiously ignore.

Stephen Thompson, Clinton ON

Neo-con economic theory must always be evangelized as though it is always correct ignoring all real world evidence and the complete lack of functioning international dairy markets, blah, blah, blah......

And here I thought denial was a river in Egypt.

LMAO

It's been an undeniable economic truth for almost 200 years that tariff-based systems, such as supply management, are net-negative for jobs and economic activity, and ALL of the real world evidence backs it up.

Only an evangelist or supply management supporter would ignore the fact that supply management pits farmers against consumers and farmers against each other.

What is it about screwing consumers and other farmers do supply management supporters refuse to accept as truth?

Stephen Thompson, Clinton ON

Not sure what all the blubbering about supply management has to do with this story or the goat industry as there is none in the sector.....

Aren't you tired of complaining about supply management? Maybe its time to move on.....

(1) Only in Canada would the dairy industry blame the "crimes" committed by other countries in an attempt to absolve the Canadian dairy industry of the far-greater "crimes" they commit against Canadian consumers, other Canadian farmers and the far-larger export oriented sector of the Canadian economy.

(2) Only in Canada are there dairy policies which are net-negative for jobs and economic activity.

(3) Only in Canada are there dairy policies which deliberately screw consumers, particularly the poorest consumers.

(4) Only in Canada are there dairy policies which deliberately pit farmers against each other.

Instead of making bad puns about rivers in Egypt, supply management supporters need to face the truth that the words "denial" and "supply management support" are virtually interchangeable.

Stephen Thompson, Clinton ON

I thought this was about an opportunity for dairy that is free market based! Maybe Gaylea has seen the light.

D. Lyons
Caledon

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