this post was submitted on 02 Feb 2024
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[โ€“] Rodeo@lemmy.ca 0 points 9 months ago (1 children)

How TF does a cartel that regulates production and dictates prices keep those companies from gouging?

They literally control the entire industry, there's no customer protections at all.

[โ€“] undercrust@lemmy.ca 2 points 9 months ago

Unfortunately that statement demonstrates a functional misunderstanding of how supply management operates.

Farmers / quota pools are mandated by these government regulations to have supply marginally exceed expected consumer demand specifically to address common issues with any commodity sector such as price gouging (to protect consumers), and predatory pricing (to protect producers).

https://bcegg.com/our-story/supply-management/

https://www.theglobeandmail.com/business/adv/article-matching-demand-and-made-in-canada-eggs-with-supply-management/