Summary Report on Public Consultations – Phase I
Canada is a leader in agriculture and agri-food and the Government of Canada is committed to finding new ways to support our producers and processors in the global marketplace. The government is committed to ensuring that a key pillar of Canada’s supply management system—the allocation and administration of its tariff rate quotas (TRQs), for dairy, poultry and egg products—remains efficient and effective.
In 2019, Global Affairs Canada (the department) launched an 18-month comprehensive review of policies related to supply-managed TRQs.
The objective of the comprehensive review is to formulate long-term policies to ensure the continued efficiency and effectiveness of Canada’s TRQs for dairy, poultry and egg products. This report provides a high-level summary of feedback received during the initial 16-week comment period.
What we did
- The department launched the comprehensive review of the allocation and administration of TRQs for dairy, poultry and egg products on May 10, 2019.
- A notice for the consultations was published in the Canada Gazette Part 1 on May 25, 2019.
- The first phase of the consultation, which did not identify any specific policy options, sought important input from stakeholders on all aspects of the TRQ allocation and administration.
- Feedback was provided through an online questionnaire, written submissions, targeted meetings with stakeholders and meetings co-chaired by provincial officials in each province during the comment period.
- The comment period ended on August 31, 2019.
Who we heard from
During Phase I, the department received approximately 200 submissions, including nearly 150 responses submitted through an online questionnaire and just over 50 submissions received by email. In addition to the online process, the department engaged with multiple stakeholders including business representatives working in supply‑managed sectors, industry associations representing producers, processors, retailers and importers and international trade partners. Additionally, the department co-chaired stakeholder consultation sessions with provincial counterparts across the country.
Feedback was received on all elements of TRQ allocation and administration from stakeholders in the dairy, poultry and egg sectors, including many that are active in multiple sectors. Respondent groups represented all elements of the value chain, including producers, processors, further processors, distributors, retailers and food service operators, as well as individuals and companies covering multiple business activities.
The majority of respondents provided views on the dairy and poultry sectors.
Respondents by sector
Respondents by sector
- Dairy: 91
- Poultry: 54
- Multiple: 35
- Egg: 14
- Other: 4
The majority of respondents were businesses operating in supply-managed sectors (75%); national associations, provincial governments and trade partners, comprised the remainder (25%).
Respondents by activity
Respondents by activity
- Other: 25%
- Processor: 23%
- Distributor: 20%
- Producer: 17%
- Further Processor: 8%
- Retailer: 6%
- Food Service Operator: 2%
What we heard
A high-level summary of comments received is provided below. Input from stakeholders reflects the elements outlined in the consultation, and a number of common themes emerged.
There was an overall recognition by a majority of respondents that rapidly changing markets have made it necessary for Canada to adjust policies in order to remain competitive in today’s evolving agriculture and agri-food economy.
The need to protect Canadian business investments, value-added production, innovation, and job creation were also reoccurring themes throughout the spectrum of respondent feedback.
- On allocation of quota:
- market-share, equal-share, or a combination of both were identified by the majority of respondents as a preferred method of allocating TRQ;
- support for the continued use of historical TRQ allocation was mixed; and
- allocation of TRQ on a first-come, first-served or auction method, generally did not garner support from respondents.
- On eligibility criteria:
- the majority of respondents identified as being “active in the market” with production facilities, and value-added goods as being a core requirement for TRQ allocation—rather than by sales or transfers only.
- On transfers:
- there was general agreement on the necessity of transfers to allow for adjustment in market conditions and for seasonal fluctuations; and
- transfers were seen as beneficial for smaller players to operate and grow in competitive markets and as a way to increase product variety.
- On utilization/underutilization of quota:
- respondents were supportive of having clear utilization and underutilization policies in place, citing that they were essential tools for TRQ administration.
- On transparency:
- there was support was expressed for increased transparency, including for more data on transfers; and
- the need to keep commercial/confidential information private was common among respondents.
- On regional allocation:
- while there was overall low interest on the issue of regional allocation, there was support from some respondents for regionally focussed allocations.
- Short supply:
- support for more flexibility to be introduced for those commodities that are in short supply or without production facilities in Canada to ensure that domestic requirements and the needs of consumers are being met.
The department continues to consult with stakeholders on its policy options through Phase II of the consultations until March 5, 2021.
The feedback received from Phase II of the consultations will inform the decisions of the Minister of Small Business, Export Promotion and International Trade in developing long-term TRQ policies. The long-term allocation and administration policies for each TRQ will be published on September 1, 2021.
For further information about this consultation, please contact us:
Supply-Managed Trade Controls Division
Global Affairs Canada
111 Sussex Drive,
Ottawa ON K1A 0G2
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