Dairy cows munch hay at a farm in Quebec. Ryan Remiorz – The Canadian Press Response to oil woes vs. dairy supply management paradox points to need for new policy direction BY JAN SLOMP GUEST OPINION On December 2, the Alberta government announced it will impose production discipline on the province’s oil companies to bring the price of bitumen-based oil above its cost of production. This came in response to it being discounted by over $50 per barrel compared to higher-grade West Texas Intermediate oil. RELATED:’ A start:’ Alberta critical of Ottawa’s $1.6B package for ailing energy secto Falling prices would soon cause oil companies to divest or go broke, resulting in unemployment and less business activity. By intervening, the Alberta government is helping oil sector profitability and viability. Within 24 hours of the announcement, the price of bitumen-based oil doubled. Less than a week after Alberta pulled its economy out of a crisis by implementing supply management for the oil industry, the federal government announced another "compensation" package for dairy farmers. Canadian dairy farmers have been deprived of 3.5 per cent of our dairy market to European cheese under CETA, 3.5 per cent more to Trans Pacific Partnership […]
