In Ontario, a dairy farmer was recently forced to dump 30,000 liters of milk. This wasn’t due to contamination or spoilage—it was because the farmer exceeded his government-mandated quota. Under Canada’s supply management system, farmers are restricted in how much milk they can produce. When they go over those quotas, the excess is discarded, regardless of the demand for milk.
This practice isn’t new. For decades, Canada’s rigid supply management system has created scenarios where dairy farmers are forced to dump perfectly good milk simply because it exceeds the amount their quota allows. The result? Waste, higher prices for consumers, and an inefficient market. The government controls dairy production, creating artificial scarcity even when there’s an abundant supply.
On top of that, Canada’s 270-300% dairy tariffs have been in place for decades, protecting domestic farmers from competition. These tariffs limit access for U.S. dairy products and keep prices artificially high for Canadian consumers. Despite the USMCA agreement, which allows for some tariff-free dairy imports, the high tariffs on anything beyond that remain.
The U.S. dairy industry has long criticized this system, with farmers in states like Wisconsin pushing for greater access to the Canadian market. Former President Trump made these tariffs a point of contention during trade negotiations, but Canada’s protectionist system hasn’t changed much.
The result is a market that’s not functioning properly. Consumers pay more, and waste is created while demand remains high. Rather than allowing farmers to sell extra milk to meet that demand, the government imposes a system that forces destruction. This isn’t just about economics—it’s about a system that allows waste to happen while families struggle to afford food.
Ending these quotas and tariffs is the only way forward. The free market should determine prices and supply, not government-imposed restrictions.
Ontario Dairy Farmer FORCED to dump 30,000 litres of milk because he went over quota.
— Bruce (@bruce_barrett) March 27, 2025
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