Tuesday, March 31, 2015

Comparative Advantage Of Production

Chicken Farmers of Canada ("CFC") is supposed to be allocating additional quota based on a provinces "comparative advantage of production".  How well did CFC do on this responsibility.

Yesterday's Blog posting used Lloydminster, a city on the provincial border between Alberta and Saskatchewan, to examine the impoact of CFC's MOU for the Chicken Wars (see Chicken For Lloydminster.

As mentioned there, Canada's Farm Products Agencies Act requires CFC to consider "comparative advantage of production" to assign additional quota.

What exactly is "comparative advantage of production"?

You can read more about it here, here, and here.

I'm not sure who was advising CFC when they came up with their bastardized lists of factors for the assignment of chicken quota according to their MOU, but they certainly have little to do with "comparative advantage" as I understand the terms.

If I am wrong, let CFC disclose overwhelming evidence that the 7 factors they have chosen:
  • Provincial shares of national base allocation,
  • Population growth;
  • Income - based Gross Domestic Product (GDP) growth;
  • Consumer Price Index,
  • Farm Input Price Index,
  • Quota utilization; and
  • Further processing and supply share.
as CFC has done in Section 1.(1.1).(A) of their Memorandum of Understanding are indeed factors for "comparative advantage of production".

If CFC is unwilling or unable to convince me and all other Canadians, then CFC needs to fix its mistake.

Why would CFC do such a crazy thing?

Because CFC realized their government masters were getting impatient with CFC about the chronic squabbling, and Alberta finally leaving the Federal-Provincial Agreement Chicken 2001.  That dirty laundry in public was an embarrassment, and had to be eliminated pronto.

CFC let the kids decide that candy would be served as the main course at all meals, they could watch TV all day, and could go to bed whenever they felt like it.  What kid wouldn't agree to accept negotiated terms like that?  CFC abdicated and capitulated to everybody's wanton depravity so as to get a quick deal.

In doing this deal, CFC has kicked Canada's Supply Management System out of orbit, and on a course heading into deep outer space.  Soon, we will be into uncharted space.

All of this has untold risks to Canadian chicken consumers.

Because Supply Management is a private world unto itself, only those who are "directly" affected by CFC's nonsense can complain.  All others must sit still, speak only when spoken to, and mind our own business.  CFC gets to destroy everybody but we, the public, must grin and bear the slow torture inflicted by CFC.

Thanks CFC!

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