The importance of marketing boards in Canada: a twenty‐first century perspective

Abstract

PurposeMarketing boards are an integral part of the farm economy in Canada. Their purposes have been debated for decades but seldom from a marketing perspective. Such an approach makes for an interesting way to study them. The purpose of this paper is to assess the pros and cons of marketing boards, suggesting how they can be made more responsive to market forces.Design/methodology/approachThe paper positions the need for Canada to bring agricultural market reforms. The wave toward freer access to world markets makes the study of supply management that more interesting and relevant in the twenty‐first century. A brief history of marketing boards is presented, followed by a discussion of their economic, social and constitutional impacts on Canadian society. Dairy supply management issues are discussed because they serve as the basis for comparative analysis, given that dairy trade liberation has been the most successful. The impact of marketing boards on consumers is well documented.FindingsThe research points out that marketing boards lack managerial savvy to make them more efficient and responsive to market changes. Logistical and supply chain management approaches seem to be lacking. A failure to respond to markets has resulted in lost market opportunities, both domestically and abroad. The quota values, the legal and constitutional powers of Canadian marketing boards and the interprovincial trade barriers, among other issues, have stifled entrepreneurship and innovation, all with rising prices to consumers. Trade liberation will not be easy to implement even if it is urgently needed.Practical implicationsSome of the suggested market reforms presented in the paper are bound to have repercussions not only on farmers and their current ways of doing business but on Canadian society as well.Originality/valueFew studies on marketing boards have been done from a marketing perspective rather than an agricultural economic one. It is the most current review of Canadian marketing boards. Marketing studies are needed to know more about how such boards are managed and function. They need to be more accountable. The recommended managerial studies on boards make the paper unique. While trade liberation is highly recommended for milk and dairy boards to meet world pressure, the paper does not call for their elimination.

The role of collective action in the New Zealand dairy industry: an international comparison

“…Cooperatives are voluntary, for example, the Agropur Cooperative in Quebec has 4000 members. However, the cooperative could be more vertically integrated (Tamilia and Charlebois, 2007). The industry is affected by unpredictable and extreme weather conditions.…”

“…In Canada, marketing boards were established to protect and support producers during difficult financial times, control the marketing function, and can influence the commercialisation of dairy products (Tamilia and Charlebois, 2007). There is a history of government intervention here; some boards have been administered at the federal level while others are administered at the provincial level.…”

“…The industry is affected by unpredictable and extreme weather conditions. It is acknowledged the industry structure needs to change to increase supply chain efficiency (Tamilia and Charlebois, 2007). Although there are a few cooperatives, generally the cooperative structure is not popular in Canada (Tamilia and Charlebois, 2007).…”

“…There is a history of government intervention here; some boards have been administered at the federal level while others are administered at the provincial level. The marketing boards are thought to limit innovation, act monopolistically and restrict the ability to respond to changing market conditions (Tamilia and Charlebois, 2007). Furthermore, milk quotas limited production volume, create entrance barriers and have created conflict between marketing boards.…”

“…The small domestic market for milk in New Zealand results in about 95% of milk production being exported to international markets; comprising around a third of the international market. In 2002, the national dairy herd was 5.2 million (Statistics New Zealand, 2002), consisting of around 14 700 suppliers supporting the industry, with average herds of around 200 cows (Sankaran and Luxton, 2003;Tamilia and Charlebois, 2007). Similar increases in production may continue in the future as resources are stretched in efforts to capture the profits associated with exporting to markets overseas.…”