Supply Management

Supply Management is the term used to describe the national production/marketing mechanism utilized by five Canadian agricultural commodities, dairy, table eggs, turkey, chickens and hatching eggs. Federal and Provincial governments implemented this system in Canada in the early 1970s based on collective marketing and production planning adjusted to the needs of the Canadian market/consumers. Each commodity operates through a Provincial Marketing Board or Commission.

Supply management is based on three basic pillars, each of which is critical to ensuring that the system operates smoothly.Three pillars work collectively to support commodities operating under supply management.

  1. A pricing policy, established in each province, that ensures the minimum price paid to producers covers production costs and allows for some return on investment into buildings and equipment.
  2. The federal government is committed to restricting imports through over quota tariffs. For example, hatcheries in Canada have Tariff Rate Quota (TRQ). TRQ permits hatcheries to import from the US, 17.43% of the total required hatching eggs for a year. This paper can be used or sold to another hatchery in Canada.
  3. Production management balances supply of the commodity with its demand. Products under supply management are mainly intended for domestic consumption and not for export.

Supply management operates under a quota unit system. Quota now has assessed value and is purchased by producers to provide them the right to produce a share of the required market. Quota holders have the privilege, granted by their Board or Commission, to engage in the production and marketing of the regulated product.

The production of broiler hatching eggs in Alberta is managed by the Alberta Hatching Egg Producers whose board was formed in 1981. Hatching Eggs Regulation (280/97), Alberta Hatching Egg Plan Regulation (283/96), Alberta Hatching Egg Producers Authorization Regulation (278/97), and Hatching Egg Producers Negotiation and Arbitration Regulation (281/97) all relate to the governance of the Alberta hatching egg industry.