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Supply Management

MYTHBUSTING 101: Supply Management, Productivity and Innovation

It’s been said recently that supply management is a system that does not adapt to change, thus discouraging productivity and innovation.  Well, our mythbusting team is here to tell you that’s FALSE – another myth! In fact, supply management promotes innovation and enables productivity. Let’s take a look at how it’s done with our infographic: Supply Management, Productivity and Innovation

Under supply management, farmers plan their production to provide a steady supply of quality food that accurately reflects changes in Canadian consumers’ demand. As part of planning production, we use a quota system to ensure there are no surpluses or shortages of chicken on the market. Purchasing quota is a lot like buying franchise rights, similar to a restaurant operator: it’s an investment in the stability provided by supply management. Thanks to this stability, supply-managed farmers do not rely on government supported programs and subsidies. This creates a healthy, viable sector in which producers can invest back into their communities and businesses with confidence. Without a stable sector, there can be no investment in innovation and productivity measures.

Not only that, but supply management also generates jobs in farming, processing, veterinary work, transportation, retail, restaurants and more. It isn’t just farmers that benefit from the stability supply management provides: everyone working with these products, throughout the value chain, benefits, impacting both rural and urban economies.

In fact, the Canadian chicken sector’s 2,803 chicken farmers and 191 processors generate employment, wealth, and help sustain agricultural communities in every province across the country. It is a driving force in the Canadian economy. Specifically, the sector:

  • sustains 87,200 jobs,
  • contributes $6.8 billion to Canada’s Gross Domestic Product,
  • pays $2.2 billion in taxes (instead of seeking taxpayer money through subsidies), and;
  • purchases 2.6 million tons of feed, supporting other farmers in turn.

Supply management also allows innovation.  For example, as described in our recently published Sustainability Report, research and innovation is the foundation that provides farmers with the information and tools to be able to protect bird health and welfare – it’s what helps them continually improve.  Chicken Farmers of Canada is a founding member of the Canadian Poultry Research Council (CPRC), and the majority of research funds are directed through the Council. Nearly half of the research funding has been directed towards bird health and antibiotic alternative research, and over 20 projects have been funded to address animal welfare.

Another example of innovation can be seen with the creation and implementation of our rigorous food safety and animal care programs. The Raised by a Canadian Farmer On-Farm Food Safety Program has received full federal, provincial, and territorial government recognition, and the Raised by a Canadian Farmer Animal Care Program is based on the nationally developed Code of Practice. 100% of Canada’s chicken farmers are certified on both programs. Supply management allows Chicken Farmers of Canada’s provincial boards to make the programs mandatory across the country, and also gives the provincial boards the regulatory authority to enforce them. As a result, Canadians are always guaranteed a steady supply of fresh, high-quality, safe chicken that is raised to the high animal care standards they expect.

LET’S REVIEW THE FACTS:

  • The stability of supply management provides producers with the opportunity to innovate and be productive,
  • It isn’t just farmers that benefit from the stability supply management provides: everyone working with these products throughout the value chain benefits from it, impacting the Canadian economy,
  • The Canadian chicken sector generates employment, and helps sustain agricultural communities in every province across the country,
  • Research and innovation is the foundation that provides farmers with the information and tools to be able to protect bird health and welfare, and;
  • Supply management helped create and implement the Raised by a Canadian Farmer On-Farm Food Safety Program and Raised by a Canadian Farmer Animal Care Program.

Supply management’s stability provides the Canadian chicken sector with opportunity to be productive and innovate.

Want us to bust some other supply management myths? Send us your questions via twitter using the hashtag #IHeartChickenFarmers – stay tuned to see if your myth gets busted!