William Watson responds to a column by Wally Smith, head of the Dairy Farmers of Canada:
... To make the legalized price gouging work, of course, it’s necessary to keep cheaper alternatives out of the market. Which is why, in addition to police protection against excessive production in Canada, we have enforcement at the border via outrageously high tariffs: 241% to 295.5%, including 277% for ice cream. Imagine! A country that puts punitive taxes on ice cream!
... Mr. Smith’s main justification for output restriction is that before it came along, dairy prices would fluctuate. ... (Note that one of OPEC’s official aims is “the stabilization of prices in international oil markets with a view to eliminating harmful and unnecessary fluctuations.” All cartels believe devoutly in “stabilization".)The dairy cartel should go the way of the Wheat Board. But it'll be a tougher nut to crack given that it's a shared federal/provincial jurisdiction.