Supporting Canada’s supply-managed sectors

The Government of Canada is delivering on its commitment to provide full and fair compensation for supply-managed sectors to address the impacts of the Canada—European Union Comprehensive Economic and Trade Agreement (CETA), the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Canada—United States—Mexico Agreement (CUSMA).

On August 16, 2019, the federal government announced that $1.75 billion would be made available to compensate supply-managed dairy farmers across Canada for the impact of CETA and CPTPP, in the form of direct payments. In the first three years of the Dairy Direct Payment Program, the Government of Canada has made up to $1.28 billion available to Canada's dairy producers. In 2022—23, dairy farmers will receive, on the basis of their milk quota, cash payments totaling up to $468 million.

Together with the $250 million provided through the Dairy Farm Investment Program, this brings the total compensation package for dairy producers for the impacts of CETA and CPTPP to $2 billion.

The Government also announced $691 million in compensation for the impacts of CPTPP to eligible poultry and egg producers. Responding to sector demands, on April 13, 2021, the Government of Canada announced program details of close to $647 million for the Poultry and Egg On-Farm Investment Program and over $44 million for the Market Development Program for Turkey and Chicken. These 10-year programs will drive innovation and growth for Canada's chicken, egg, broiler hatching egg and turkey farmers.

On March 9, 2022, the Government of Canada launched the $292.5 million Supply Management Processing Investment Fund to help processors of supply-managed commodities adapt to market changes resulting from the implementation of CETA and CPTPP. Through this program, processors of supply-managed commodities have access to funding to help improve productivity and efficiency through investments in new automated equipment and technology. This program builds on $100 million previously invested through the Dairy Processing Investment Fund to help dairy processors adjust to market changes resulting from CETA.

Through the 2022 Fall Economic Statement, the Government announced up to $1.7 billion in compensation to supply-managed sectors for the impacts of CUSMA.

The Government intends to deliver this compensation by sector:

  • Up to $1.2 billion to Canadian dairy producers under the Dairy Direct Payment Program.
  • Up to $112 million to the Canadian poultry and egg producers under the Poultry and Egg On-Farm Investment Program.
  • Up to $105 million to support investments in dairy, poultry and egg processing plants under the Supply Management Processing Investment Fund.

The Government also intends to invest up to $300 million to the Canadian dairy sector through a new program to support innovation and investment into large-scale projects to add value to solids-non-fat, a by-product of milk processing.

With this announcement, the Government of Canada delivers on its commitment to fully and fairly compensate producers and processors who have lost market share under CETA, CPTPP and CUSMA. The total compensation will reach up to $4.8 billion.