How Does CETA Affect The Market?

By 1990, Ontario was the home of over 9300 dairy farms with over 450,000 cows. Over 1.3 billion dollars of milk was produced resulting in a total exceeding 4 billion in dairy product sales at the retail level. We can infer that the growth in the dairy industry was due to a dramatic increase in milk production per cow over the past 10 years due to genetic screening. An emphasis on genetic screening is inevitable; for instance, researchers at the University of Guelph have successfully cloned dairy calves. As a result, approximately 30% of Ontario dairy farmers have become breeders and derive a significant amount of revenue from the sale of breeding stock. Emphasis on genetic breeding and herd management is on the rise as the Ontario Milk Marketing Board issued quotas to limit the amount of milk that can be delivered to processors. However, we see a decline in the number of dairy herds within Ontario that are a part of a milk testing program from 7100 in 1985 to 6000 in 1990. John Meek believed this trend would continue unless proper action was taken. Lastly, technological advances have allowed for electronic milk testing systems,

Besides the environmental factors, another point would be that small farms benefit greatly when consumers buy locally grown foods. Small, locally owned farms

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.

Based on the output of production, agriculture is perceived as an advance because farmers can produce more food within a smaller area than they could possibly obtain as hunter-gatherers. Harris says that this situation happened since farmers control “the rate of plant reproduction” (Harris 219), which means that immediate adverse consequences could be prevented with the intensification of production. On the other hand, hunter-gatherers, which depend on the availability of natural plants and animals; consequently, can raise their output very little. However, although farmers can produce more food than hunter-gatherers do, the numbers of crops are limited; therefore, when the crops failed, there is risk of starvation.

Considering the marketing segment, we choose the target market from small, medium and large farms. If products are sold to small farms, the sales revenues even can’t cover the cost,

farms to keep their prices low, can eventually cause the market to fail. (58) The article The

Plenty of benefits have steamed from the implementation of subsidizations in the agriculture industry. First, farmers are receiving a more consistent income than they were before the government’s subsidies were enacted. As stated by Connect Us Fund, subsidies allow

thing, but this was bad for the farmer, lower prices meant that the farmer had to grow enormous

Alongside the growth of large farms, crops are being subsidized which leads to the prices of the goods being kept at a low price (Toews). For a family farm, this means producing a crop that is not cost effective which eventually drives the family farms out of business. Once these large corporations produce the crop, it is then shipped to the manufacturers

When the deal is implemented, it would allow for more imports of milk, yogurt, ice

Canada 's dairy sector operates under a supply management system based on planned domestic production, supervised pricing and strict controls on dairy product imports. The system was adopted for industrial milk in the early 1970s to address the unstable prices, uncertain supplies and fluctuating producers and processor revenues which were common in the 1950s and 1960s. By enforcing this system, farmers attempt to strike the most accurate balance between supply and demand of dairy products (Canadian Dairy Commission, 2010).

So at the private equilibrium PM dairy is under priced, as it only reflects private costs and benefits. As a result dairy is being overproduced at QM. Society would prefer if supply was at QS and if the price was at PS, to reflect the true costs, both social and private from fast food

Based on the initial declaration of findings from the Conference Board of Canada analysis of supply management, consumers are highly affected by the system as dairy prices in Canada are

Coxe has studied the sector for more than 35 years as a strategist for BMO Financial Group. He says it didn’t have to come to this. “We’ve got a situation where there has been no incentive to allocate significant new capital to agriculture or to develop new technologies to dramatically expand crop output.”

Political factors impact the agricultural sector in factors relating to regulation, distribution, and consumption of foods in a given country. Government policies and imposed regulations have a direct effect on nutritional choices that a consumer makes, and this, in turn, affects the agriculture market (KPMG, 2012). For example, policies governing food prices or the amount of information that a consumer will receive affects the choice of the consumer. Food regulation and safety measures implemented influence the supply of food products, and ultimately determines the market choice for consumers (KPMG, 2012). Economic factors have a direct effect on the agricultural industry. On one hand, the input cost such as the price of seeds, fertilizers, and cost of labor affect the productivity of the industry. The economic status of a country also affects the industry’s productivity. For example, in developing countries, the agricultural sector is less developed owing to limited resource input and poor infrastructure (KPMG, 2012).