Supply management is a uniquely Canadian approach to agricultural production of dairy, poultry and eggs that benefits Canadian consumers, farmers, and processors. Under this system, regulated egg farmers get a fair return for their eggs from the marketplace, processors get a reliable supply of product, and Canadians are provided with a consistent choice of safe, nutritious and high-quality eggs at reasonable prices.
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Federal and provincial laws allow farmers to work together to match what they produce with what consumers need and want. This management process results in a stable supply of food without creating excess surpluses.
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.
Our dynamic supply management system has, for more than 40 years, allowed generations of farmers to make a sizeable economic contribution to the nation, while meeting dramatically evolving consumer demand for high-quality products. The Canadian egg industry contributes more than $1.3 billion in economic activity and 16,000 jobs. The egg industry in Manitoba contributes about 85 million dollars to the provincial economy each year. Manitoba egg farmers love what they do, and consider it a privilege to provide nutritious eggs for all Manitobans to enjoy.
The poultry and egg industry in Canada creates 117,161 total jobs and contributes $8.6 billion to Canada's GDP. In the prairies alone, $783 million is generated each year in farm cash receipts and $525 million in taxes goes back to support the Canadian economy. Under the supply management system, poultry and eggs are self-reliant and do not require government subsidies.
Here is a closer look at the economic impact of the poultry and egg industries across Canada:
The following chart highlights the regional economic impact of poultry and egg farming in Canada: