For dairy producers, milk pooling agreements are a way of managing the financial risks associated with the trends in domestic markets. The Canadian Dairy Commission administers these agreements on behalf of the dairy sector. The pooling of revenues from milk sales enables producers to receive an average price per hectolitre or per kilogram of components, based on total sales.

Supply management in Canada’s agricultural sector

Any industry, from car manufacturing to shoe factories, tries to establish the best possible balance between supply and demand. Farm producers try to do the same thing through supply management. They manage their production so that it will align with the demand forecasts for their products. In a supply management system, demand is forecast by means of calculations, and production signals are sent out to producers based on the demand forecasts that are obtained this way.

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