Smith signals openness to exiting supply management

Alberta Premier Danielle Smith says the province would be open to pulling out of Canada’s supply management framework and that the idea deserves further consideration.

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Alberta Premier Danielle Smith says the province would be open to pulling out of Canada’s supply management framework and that the idea deserves further consideration.

The issue was first raised by an attendee at the first Alberta Next Panel in Red Deer earlier this week, Lee Eddy.

“I think that if you really want to make eastern politicians—both federal and provincial—change their underwear, we should remove our supply management from the Canadian system and have our own. Transition the quotas to an Alberta-only system and then transition that gradually to a market system,” he said.

While many audience questions at the panel didn’t get immediate responses, Smith referred back to the supply management proposal multiple times throughout the evening.

Smith later called the proposal “a really novel concept I hadn’t considered.”

She added that there may be other overlooked concepts that were not initially considered, which is why the province’s survey includes an open section for public suggestions. At the time of the panel, more than 50,000 Albertans had already filled it out.

“Creating our own Alberta version of supply management, maybe as a pathway to a market system, or maybe just because it would stick our finger in the eye of Quebec because we do not get our share of the quota,” said Smith, when explaining some of the new ideas she’d heard at the panel.

She added that Alberta receives a disproportionately small share of the national supply management quota.

“I think we have 12 per cent of the population and we only get 7 per cent of the quota,” said Smith. “So that might be one we want to do a little consultation on.”

She urged Albertans to continue filling out the survey and suggesting new ideas that may have been overlooked. Smith cited that a similar process last year led to 25 policy recommendations, and the government has already acted on or is planning to act on 20 of them.

Quebec and Ontario currently control nearly 70 per cent of Canada’s milk quota, according to Agriculture and Agri-Food Canada. Alberta controls just under 9 per cent.

The remarks come as pressure mounts on the federal government to reform the system. U.S. President Donald Trump has threatened to impose 35 per cent tariffs on Canadian goods starting August 1 due to supply management and Canada’s handling of the fentanyl crisis.

Trump criticized Canada’s long-standing supply management system, denouncing what he described as “extraordinary Tariffs to our Dairy Farmers — up to 400%.”

The federal trade minister said back in February that the Liberals would not be making any concessions on supply management.

However, critics have suggested that Canada might need to sacrifice the supply management system to get anywhere in negotiations with the United States.

The U.S. dairy industry has similarly called on Canada to end supply management.

The Alberta Next Panel will continue hosting events provincewide, with three set to occur in August and five slated for September.

The panel’s findings will determine which issues will end up as referendum questions in 2026.