Martha Hall-Findlay claims supply management raises prices to consumers.  

 

She backs this up with a table showing national average milk prices in Canada and the US during March 2010-12.  In March 2012, Hall-Findlay says, 4 litres of homogenized milk cost Canadians $9.60 and Americans $3.68. 

 

"Canadians are forced to pay almost three times as much for four litres of whole milk as Americans" she trumpets.

 

Sorry Martha, you are dead wrong. Happy to discuss... 

 

To get the Canadian price, Hall-Findlay uses Statistics Canada's CANSIM Table 326-0012 that reports monthly average Canadian prices for two fluid milk products, partly skimmed and homogenized; both in one litre containers.  For March 2012, one litre of partly skimmed was $2.30, $2.40 for homogenized.  

 

How did Martha get her price of $9.60 for 4 litres?  Why, she took Cansim's one litre price and simply multiplied by 4. 

Sorry Martha. As any retailer or consumer will tell you, that's a big, big error.   Eighty percent of Canadians buy milk in 4 litre bags ($4-5 each); SUBSTANTIVELY below their 1 litre cousins ($1-2 each). 

 

In his 2009 report, George Brinkman, Professor Emeritus, University of Guelph notes prices for 4 litres of partly skimmed milk were $3.97 in Toronto versus $3.40 in Boston, a 57¢ spread for 4 litres. Hall Findlay's analysis pegs this 4 litre price gap at a whopping $5.56. 

The magnitude of Hall-Findlay's error invalidates her entire case. 

Correctly analyzed, prices for 4 litres of 1 or 2% milk in Canada and the US will show differentials in the neighbourhood of 60 to 80 cents per 4 litre bag, or 15 to 20 cents per litre, not the $1.42 per litre Hall-Findlay reports.

 

Hall-Findlay's attack on supply management is based on false allegations and spun for political gain. Hall-Findlay is considering a run for the Liberal leadership.  Perhaps she feels playing to the neo-classical right (attacking supply management) is a way to gain supporters and profile.  It's telling that half her report is devoted to how "politically safe" her position is: "The threats to risk-averse politicians from the dairy lobby are, contrary to widely held assumptions, negligible...There are now few, if any, ridings where dairy votes could plausibly swing elections." 

 

Attacking supply management is BAD PUBLIC POLICY.   I know.  As a policy Agrologist with over 30 years standing in my profession, I am more than prepared to stand up and defend the public interest in this one...

 

After last night's Lang and O'Leary segment, Martha Hall Findlay owes us all a retraction... Or a proper debate.  

 

I'm up for it Martha...   Are you?

 

 

Wendy to Martha: let's talk