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The Canadian Dairy Commission: a 40-Year Retrospective

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The Canadian Dairy Commission: a 40-Year Retrospective The Canadian Dairy Commission: A 40-Year Retrospective The Canadian Dairy Commission: A 40-Year Retrospective ottawa © Her Majesty the Queen in Right of Canada, 2006 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without prior written permission from the publisher. ISBN 0-660-964-7 Catalogue No A88-4/-2006E Published by: The Canadian Dairy Commission Library and Archives Canada Cataloguing in Publication Building 55, NCC Driveway Central Experimental Farm Canadian Dairy Commission 960 Carling Avenue Ottawa, Ontario The Canadian Dairy Commission : a 40-year retrospective. KA 0Z2 Issued also in French under title: La Commission canadienne du lait, Également disponible en français. 40 ans d’histoire. Author: Erin Scullion. Includes bibliographical references. CDC History Book Advisory Committee ISBN 0-660-964-7 Chuck Birchard Cat. no.: A88-4/-2006E Ray Cloutier . Canadian Dairy Commission--History. 2. Milk trade--Government Nelson Coyle policy--Canada. 3. Dairying--Government policy--Canada. Neil Gray I. Scullion, Erin II. Title. Carl Harrison Peter Oosterhoff SF233.C3C32 2006 354.5’9 C2006-90583-X Project Manager: Chantal Paul Author: Erin Scullion Research Assistant: Sarah Speevak Content Editor: Steve Mason Copy Editor: Janet Shorten Photo Research: Shelley Crabtree Indexing : Julie Lobb Please note that some of the footnotes contain references to Web sites Book Design and Production: Fiona Raven and Scott Polzen that were active at the time of research but may no longer be available. First Printing December 2006 Printed in Canada Foreword This book was conceived when Canadian Dairy Commission (CDC) staff realized that many CDC pioneers were getting on in years, or in some cases, had passed away. The four decades of the CDC’s history span a period during which more change occurred, both technological and organi- zational, than had previously taken place from the day the first dairy cow set hoof on Canadian soil. The CDC has been a wit- ness, participant, and from time to time a driving force, in the modernization of Canada’s dairy industries. We felt we had reached a point in our history when it was im- portant to record those changes. It is easy to lose track of the ra- tionale for decisions and agreements that continue to influence the way we do business today. Knowledge of what happened in the past—and why—may with profit inform and influence future decisions. The book should serve as an exposition for our counterparts in other countries of what a fair and well-run dairy industry can do for all its stakeholders, from producer to consumer. Canada’s system may look complex from the outside, but its checks and balances have worked for us. This history will also stand as a monument to the outstanding people who have led our industry over the years and have brought us through more than one period of crisis, when lesser leaders would have thrown up their hands. We have been truly fortunate in the succession of pathfinders who, coming from farms, facto- ries, the civil service and the political platform, have succeeded in drawing together an industry from Vancouver Island to St. John’s to make Canada a world leader in dairy products. John Core Chairman Canadian Dairy Commission December 2006 v Contents Foreword . .v The Early Supporters of the CDC . .23 Acknowledgements . .x Harry Hays . .24 About the Author . xiii John James Greene . .24 Acronyms . xiv S.C. “Cliff” Barry . .25 Preface . xvi David Kirk . .25 Milk, the primeval foodstuff. xvi George McLaughlin . .25 How supply management works . xvi Benoît Lavigne. .26 Timeline—History of the CDC . .xviii Philippe Pariseault . .26 Syd Williams and Don Goodwillie . .26 The 1960s: The Foundation Years 1 Passing Bill C-205. .27 The Dairy Industry Before the Canadian Dairy Commission . .1 The Canadian Dairy Commission Act 1966 . .27 Introduction . .1 Commission appointees . .29 Dairy Production . .3 Consultative Committee appointees . .29 The milk streams . .3 Funding . .30 Industrial milk and farm-separated cream . .3 Objectives. .30 Fluid milk. .4 Duties . .30 Overlap of the fluid and industrial markets. .4 Powers. .30 Importance of milk . .5 The CDC Starts Up. .31 The Economic and Political Climate. .6 The Policy Role of Exports, Subsidies, Quotas and Pricing. .32 The export scene . .6 The Quebec-Ontario milk subsidy war. .32 Government Involvement in Dairy . .8 First Steps towards supply management: In the beginning . .8 Subsidy Eligibility Quotas. .32 During the 1960s . .8 The Export Price Equalization Program . .33 Dairy Farming in the 1960s . .9 The Consultative Committee . .33 British Columbia. .11 Heading Into the 1970s . .35 The Prairies . .12 Appendix 1-1 Commissioners, Ministers and Prime Ministers . .37 Ontario. .12 Quebec . .15 The 1970s: Building Supply Management 41 The Maritimes. .16 Introduction . .41 Dairy Processing in the 1960s . .17 Developing the Quota System. .42 Dairy Organizations and Their Influence . .18 The Interim Comprehensive Milk Marketing Plan . .42 Dairy Farmers of Canada and Integrating industrial and fluid milk pools . .44 the Canadian Federation of Agriculture . .20 Pooling and integration. .44 Union catholique des cultivateurs Reactions to the Plan . .45 (Catholic Farmers’ Union) . .20 The Origin of the Canadian Milk National Dairy Council. .21 Supply Management Committee . .47 The Canadian Dairy Conference . .21 The CMSMC rolls up its sleeves . .48 The Canadian Dairy Advisory Committee . .22 Adjusting and allocating MSQ. .48 Committee membership . .22 Subsidy Eligibility Quotas phased out. .49 Committee recommendations . .22 The CMSMC Secretariat . .49 Creating the CDC . .23 Pitching Pricing . .50 Announcement of a New Dairy Support Program . .23 vii Supply Management Comes of Age . .51 The Consultative Committee . .95 The Returns Adjustment Formula of 1975 . .51 Evolution of Government Support for the Federal Dairy Policy . .95 Quota Cuts of 1976. .53 International Trade. ..
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