Your negative opinion on supply marketing boards in Ontario can be reversed it will not take long. Supply Marketing Boards are organized and managed by governments to make sure that there is a stable supply of agricultural commodities for consumers and the food industry. Marketing Boards work by joining producers together in an agreement that enables them to control markets by selling the products at a price and the quota established by the marketing board. The government controls the amount of these products that are imported and imported from other countries. Producers of supply-managed commodities had the highest on-farm income at $29,703 for poultry and egg, and $36,003 for dairy. These producers also had the lowest percentage of income coming from off-farm employment, which was 49.8 percent and 32.6 percent. Supply marketing boards provides producers with fair returns and consumers with quality products and fair prices. It also promotes stable economic activity in the rural areas of our province.
Benefits to the producer
One of the problems that farmers face is that when they bring their products to market they don’t know what price they are going to get. Through supply marketing boards farmers no longer have to worry about this issue because they are given a fixed quota at a fair price allowing them to earn a reasonable income. With Supply Marketing Boards they now have knowledge of how much revenue or income they will be receiving at the end of the year. In a free market they have to worry about losing money when there is low prices or when there is overproduction in the marketplace. The government provides a limit on the amount of goods that is produced to sell in the market.
Small farmers are disadvantaged because large farm operations can produce a greater amount of supply and can sell their product at a lower price because their cost to produce is lower. Under this system it forms an alliance with the farmers instead of having them compete against one another. An action called Price Pooling is performed when all the sales are deposited into pool accounts. All the farmers receive a payment upon delivery. Farmers receive a final payment in accordance to the returns exceeding the sum of total payments. If the returns do not exceed the sum then the federal government makes up the difference. This occurs to avoid the risk of bankruptcy between inadequate farm industries or a great loss.
Benefits to the consumer
Supply management benefits the consumer in numerous ways. Consumers pay a steady, fair price in the market for the agricultural products they would be interested in purchasing and can be assured of a consistent supply. Consumers of the food industry do not have to worry about shortages as well as a disruption in supply. Shortages can cause economic disruption.
Farmers are not under pressure to diminish the quality, to include additives or hormones to affect the quality of the product. Under supply management, farmers know they have a good market and do not have to save money by supplying the market with efficient quality products. It is a high priority to supply consumers with high quality goods.
Benefits for the ECONOMY
Marketing Boards provide National Security for Canada because they allow Canada to become dependent on local products. Disruption in supply can occur from trade disputes or diseases such as Mad Cow Disease. It allows stable production, avoids shortages, and over supply in the market place. This allows industries and consumers a steady supply. Stable Prices provide consumer with a stable, fair price including providing farmers with stable income. Stable prices are necessary to help any economy function properly. They help to keep farm employment constant and help rural areas maintain a stable economy.
Without Supply Marketing Boards there would be many economic problems in Canada. Farmers do not lose because of over production, small farm industries are at an advantage, and farmers have knowledge of their income coming in. Consumers do not worry about shortages, consumers receive quality goods, and they pay a reasonable price for their products. The economy is provided with national security, stable production, and stable supply. Supply Marketing Boards are beneficial to everybody, the producer, the consumer, and the Canadian economy. We need Supply Management in Ontario to keep our economy stable.