Comment by snayan | Hacker News Reader

Comment by snayan | Hacker News Reader

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Yes. I am well aware of this. I just find it hard to believe that dairy, poultry, and eggs are some special snowflake type of farm that requires the quota and supply chain management, while every other type of farm, we can manage with direct subsidies.

For reference, there are about 190k farms in Canada, 8% of those farms are dairy, poultry, and eggs whose viability is ensured with supply chain management. The other 92% of farms, are managed with direct government assistance (AgriStability, AgriInsurance, AgriInvest, and AgriRecovery). The latter costs the government $1.5-$2 billion most years. While the recent report on supply chain managed farms suggests the cost born by Canadians to be around $10 billion. Even if that number is off by an order of magnitude, we're looking at $1 billion for 8% of farms, and $1.5-$2 billion for the other 92% of farms.

All I'm saying is it seems like the solution to help ensure viability in dairy, egg, and poultry farming is wildly inefficient and merits a look from first principles. Is there a solution to achieve the same outcome at a lower cost? The world has changed drastically since the policies were implemented in the 1970s.

I admit I am far from an expert, but I have spent an inordinate amount of time reading about this shit out of curiosity in the past couple days. Broke my brain when I saw the numbers around the costs born by canadians in the checkout aisle due to supply chain management.

I am not sure if this factors into it but an interesting difference between dairy and eggs and most other types of farms is that those are highly perishable. Grain can be stored and released gradually to even out market gyrations but dairy is just lost if they don’t match supply closely with demand in real time.

Yeah, that's a fair point but it still seems like a huge delta.

And my rabbit hole over the last couple days has led me to spend a bunch of time looking into Fonterra, which is the farmers processing Coop that happened in NZ when they got rid of their quota system. It's turned NZ into the largest milk product exporter on earth, and their whole strategy is processing milk into more shelf stable products. Cheese and Butter is about 20% the remainder is skim milk powder, whole milk powder, whey protein, and caseins.

Anyhow, all of this is to say, that there are solutions that ensure no milk goes to waste by processing it into more shelf stable ingredients, all of which have massive demand on the global markets. Whether we do much of this in Canada, I am not sure, but, feels like a missed opportunity if not, and likely partially caused by a lack of necessity to innovate due to the artificial moat.

Eggs, haven't looked into but presumably similar to milk in that it can be processed into shelf stable powders.

But, on the poultry front, beef, pork, etc, are all in the 92% of farms group, managed by subsidies, so, while chickens have a shorter lifespan, I don't see why we can manage cow and pork farms with subsidies, but not chicken.

> Anyhow, all of this is to say, that there are solutions that ensure no milk goes to waste by processing it into more shelf stable ingredients […]

* https://en.wikipedia.org/wiki/Government_cheese

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