- Government Supply Management - Household Budgets - Retail Pricing - Food Tariffs - Agricultural subsidies

1. Government Policies –Supply
Management– Canada – May
2016
By: Paul Young, CPA, CGA

2. • This presentation is on perspective on supply chain management

3. Paul Young - Presenter
Bio
• CPA/CGA
• 25 years of experience in Academia, Industry and Financial solutions
• Youtube Channel -
https://www.youtube.com/channel/UCAArky1bAXPSuV2NLtUnyLg

4. Agenda
• Supply Chain Management
• Agricultural Subsidies
• Federal Government programs for Agriculture
• Dismantling of Supply management

5. Canada Supply Management /pricing
• An average, households spent
$8,109 on food in 2014, accounting
for 13.7% of their total spending on
goods and services. Households
spent an average of $5,880 on food
purchased from stores, and an
average of $2,229 on food
purchased from restaurants.
• Households in Alberta reported the
highest average spending on food
at $8,740, while households in
Prince Edward Island spent the
lowest average amount at $7,388.
• Couples with children reported the
highest average spending on both
food purchased from stores
($8,720) and food purchased from
restaurants ($3,204). The lowest
average spending on food
purchased from stores was
reported by one-person
households at $3,295. One-person
households headed by a senior
aged 65 years and older spent the
lowest average amount on food
purchased from restaurants at
$783.

6. Canada Supply Management
• . Agriculture sectors
• Marketing Boards
• What is marketing board
• A marketing board is an organization that holds a monopoly on the marketing of agricultural
products, which means that producers must sell their production to the appropriate board or
must follow the rules imposed by the board when selling it. Some marketing boards also have
the responsibility of supply management, fixing in advance how much of the agricultural
commodity under its jurisdiction will be produced, in effect constraining supply and raising
prices.
• Setting Quotas
• Impacts new market entrance
• Business to expand its operations
• Control of supply

7. How government protect agriculture sectors
• Imposing tariffs on imports
• Restrictions to imports
• Subsidies
• Foreign government provide government support to Agriculture sectors

8. Canada Agriculture Programs
• Farm Credit Canada (FCC) Loan Programs
• if your business is a farm operation, food processing business, farm equipment plant or an ag-biotech company, you
could be eligible for financing to:
• Purchase or improve land, buildings or equipment
• Buy quotas or livestock
• Expand your business domestically or export your products
• Make environmental improvements
• Fund diversification projects
• You could receive up to $15,000 from federal, provincial and territorial governments to match any savings you have
set aside to protect your agriculture business from a decline in profits.
• Advance Payments Program (APP)
• You may be eligible to get up to 50% of the average market price of your stored crops or unsold livestock. Cash
advances of up to $400,000 are delivered by industry associations, marketing boards and co-operatives in the
agricultural sector.
• Agricultural Adaptation Council (AAC)
• Explore funding for innovative agricultural projects, that will help the industry and individual producers adapt and
stay competitive. The program provides support to help businesses respond to market and industry changes.

9. Issues with Supply Management dismantling
• Compensation to Farmers as part of transitioning away from Tariffs
• Small family farm plays key role to local rural economies
• Canada has solid AG sector, i.e. arable land
• Protection against dumping of agriculture products
• Other issues
• Tax Policies (Cap and Trade)
• Commodity prices
• Interprovincial trade barriers
• Environmental rules (water, land usage, etc)