Economic Liberalization Essay

The Agriculture act of 1949 provided dairy farmers with a permanent price support for the time after war (5). Under the price support program, farmers sold milk in bulk. The price support program purchased manufactured milk products such as cheese, butter, etc. By purchasing manufactured milk products, the USDA’s CCC created a floor support price that was bellow the wholesale price that companies charged for their manufactured milk products (6). An indirect result of this floor support price was that it provided a price support for all of the milk from dairy and cooperatives that supplied the milk used to make the manufactured products.

In 1990, there were over 9300 dairy farms in Ontario housing almost 450,000 cows. The farm-gate value of milk produced exceeded 1.3 billion dollars. At the retail level, dairy product sales in Ontario exceeded 4 billion dollars. The number of dairy herds in Ontario on a milk-testing program had declined from about 7100 in 1985 to 6000 in 1990. Moreover, a continued decrease was projected.

The powered milk became such a commodity that the local produce dairy farms couldn’t sell their milk. A memorable scene in the film was when the dairy farmers had to spill out all their surplus milk that was only a days worth to make room for new milk since it wasn’t being consumed. A dairy farm used to produce 3,000 quarts per day and after America subsidized the milk industry, dairy farms were producing only about 600 liters. Dairy farmers were run out of their businesses and it’s sad to say but some dairy farmers were forced to convert to butchering their cows in order to make profit (Black).

products (Morin, 1990). In 1979, 6.9 million kilolitres of milk were sold in Canada. Thirty-

Present data on the trends in the sales of all milk to adults over the last 10 years, as this indicates the size of the adult milk market.

Dairy farmers should make sure their businesses are in the right shape to seize the opportunities

The government has put a limit on the amount of milk powder that can be purchased by Chinese who travel to Hong Kong. The People’s Daily, the official publication of the Communist Party, said in a commentary that since 2008, foreign milk powder companies had increased their prices in China by around 30 percent (Edward, 2013). Foreign milk powder has 60 percent of the market share in China compared with 30 percent before 2008, the commentary said (Edward, 2013). Since August 2008 when the enactment of the antimonopoly law the Chinese government have really been going against foreign companies for antitrust

A free market is a type of market that the government is not involved in. Since the government does not care about what happens, the free market is also called “hands-off” or “let it be economics”. The government is limited to protect the citizens from the danger and that is the major goal for the government. In the free market economy, there are three components of the free market economy: competition, active but limited government, and the self-interest. Competition is one of the main components of the free market economy. Competition means that the companies compete with one another to make more benefits to themselves. According to the concept of the free market economy, the competition means a good thing because it is a basic

barriers will hurt Canadian dairy farmers as they will be forced into a more competitive

Dairy farming is one of the most important sectors of Canadian agriculture. It is ranked in third place after grains and beef. The country´s 12.234 farms recorded total farm revenue of $5.92 billion in 2013. The 474 dairy plants located all over the country had estimated sales of $15.7 billion in 2013, accounting for the 16% of the value of manufactured shipments of food and beverages (Statics of the Canadian Dairy Industry 2014 Edition, 2014).

Another advantage with the removal of government interference from the economy is a reduction in the start up costs of new corporations along with a reduction in taxation, since less requirements and regulations are now in place. With business no longer having to conform and abide by strict regulations, this allows more innovators to enter and profit in the marketplace with their ideas. These inventors will create jobs for their new business and products even reducing unemployment. Free market economies offer the highest incentive to be the next Bill Gates or Steve Jobs since one is able to succeed and profit solely based off their own product or idea, making this the most efficient economy possible. With more entrepreneurs able to enter the market, there will also be a rise in competition, or business competing for customers to buy similar

That effort was short lived; only a little over 100,000 thousand was affected. This was not a natural change in the sense of frictional unemployment but the government policies may be a result of changes that they deem necessary due to market conditions.

The dairy business is a major industry in Canada which operates under the supply management system. Whether supply management should be eliminated or not has become a long-term debate in recent years. The system is necessary in making Canada's dairy industry become stronger and more reliable. As supply management is discussed as a whole, identifying the main reasons and effects of keeping supply management will be focused on. Specifically, how supply management effects Canadian dairy farmers, the economy, and consumers .

2. What changes in the global industry structure and competitive dynamics led France and other traditional producers to lose market share to challengers from Australia, United States, and

To investigate the factors behind the continued decline of the sales for Top Choice Milk in New York market.