National supply management in agricultural commodities is uniquely Canadian. Five agriculture commodities are supply-managed: eggs, milk, turkey, chicken and broiler hatching eggs. Federal and provincial laws allow farmers to work together to determine how much of each commodity needs to be produced in order to meet consumer demand. By matching supply with demand, supply management results in a stable supply and fair prices.
At least annually, Egg Farmers of Canada forecasts demand and establishes a national allocation for egg production. Every year, more than 550 million dozen eggs are produced. The national allocation, or quota order, must be approved by Farm Products Council of Canada, which is appointed by the federal government to make sure our projections are sound and serving the public interest.
The national allocation is shared among the provincial egg marketing boards and the egg marketing board in the Northwest Territories. Because egg production occurs in every province, Canadians are able to purchase fresh eggs that have been produced close to home.
The marketing boards determine how much individual farmers will produce. To get started in commercial egg production, farmers must purchase a production quota and to expand existing farms, owners must purchase additional production quota; all provinces permit small-scale production to occur outside of the official supply management structure. Provincial egg boards are introducing new entrant programs to encourage young people to get into the business of egg farming.
Supply management allows farmers to make a fair return as farm gate prices are collectively negotiated. Every four to five years, Egg Farmers of Canada conducts a national survey of egg farmer costs and updates this information regularly. This information is used by provincial egg boards to determine the farm-gate price for eggs. If costs of production increase over time, farmers get more for their eggs over time and if costs go down over time, farmers will get less. Ultimately, it is up to retailers to determine if the cost increase or cost savings are passed on to consumers.
This stability afforded by supply management supports an independent supply of Canadian produced food. It also means young egg, dairy and poultry farmers see a bright future for themselves in rural Canada.