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Canadian Dairy Commission
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Canadian Dairy Commission
The Canadian Dairy Commission (CDC) (French: Commission canadienne du lait) is an Ottawa-based Government of Canada Crown Corporation that provides a framework for managing Canada's dairy industry.
The CDC's mandate is to "ensure fair compensation to producers and provide consumers with access to a quality product."
Canada's dairy industry operates under a supply management system, so among the most important roles of the CDC are to plan national production (including by the allocation of producer milk quotas), to set farmgate milk prices, and to control dairy imports. The CDC also coordinates federal and provincial dairy policies.
The Canadian federal government has been active in supporting the dairy industry since 1890, when the first Dominion Dairy Commissioner was appointed.
In 1967 the government of Canada passed the Canadian Dairy Commission Act which established the Canadian Dairy Commission (CDC).
The Canadian Milk Supply Management Committee, whose members include the CDC and representatives of provincial producer marketing boards, was set up in 1970 to administer the national Market Sharing Quota. In 1972, the Farm Products Agencies Act authorized the establishment of supply management, which can restrict production by use of quotas.
The CDC's mandate is to "Provide efficient producers of milk and cream with the opportunity to obtain a fair return for their labour and investment" and to "Provide consumers of dairy products with a continuous and adequate supply of dairy products of high quality." The CDC aims to avoid depending on government subsidies and the dumping of surpluses into third markets.
To achieve its mandate to ensure efficient producers receive a sufficient return, the CDC (working with provincial marketing boards) sets a "support price" for milk producers. This support price is high enough that some domestic and foreign producers are willing to supply dairy products at a lower price. Therefore, to prevent this additional supply from reaching the market, the CDC uses supply management. That is, it issues a limited quantity of quotas, which are a type of licence authorizing the quota-holder to sell a given volume of dairy products. By restricting domestic supply and imports, the support price is maintained.
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Canadian Dairy Commission
The Canadian Dairy Commission (CDC) (French: Commission canadienne du lait) is an Ottawa-based Government of Canada Crown Corporation that provides a framework for managing Canada's dairy industry.
The CDC's mandate is to "ensure fair compensation to producers and provide consumers with access to a quality product."
Canada's dairy industry operates under a supply management system, so among the most important roles of the CDC are to plan national production (including by the allocation of producer milk quotas), to set farmgate milk prices, and to control dairy imports. The CDC also coordinates federal and provincial dairy policies.
The Canadian federal government has been active in supporting the dairy industry since 1890, when the first Dominion Dairy Commissioner was appointed.
In 1967 the government of Canada passed the Canadian Dairy Commission Act which established the Canadian Dairy Commission (CDC).
The Canadian Milk Supply Management Committee, whose members include the CDC and representatives of provincial producer marketing boards, was set up in 1970 to administer the national Market Sharing Quota. In 1972, the Farm Products Agencies Act authorized the establishment of supply management, which can restrict production by use of quotas.
The CDC's mandate is to "Provide efficient producers of milk and cream with the opportunity to obtain a fair return for their labour and investment" and to "Provide consumers of dairy products with a continuous and adequate supply of dairy products of high quality." The CDC aims to avoid depending on government subsidies and the dumping of surpluses into third markets.
To achieve its mandate to ensure efficient producers receive a sufficient return, the CDC (working with provincial marketing boards) sets a "support price" for milk producers. This support price is high enough that some domestic and foreign producers are willing to supply dairy products at a lower price. Therefore, to prevent this additional supply from reaching the market, the CDC uses supply management. That is, it issues a limited quantity of quotas, which are a type of licence authorizing the quota-holder to sell a given volume of dairy products. By restricting domestic supply and imports, the support price is maintained.
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