for vertical integration while producers attempt to provide themselves with production and price guarantees. Considerable strain and antagonism are also apparent in the political decisions regarding the direction that supply management should take in the future.
Chapter 19, the final chapter in this volume, analyzes the economic implications of a major production increase by Ontario chicken producers on the Canadian broiler industry to illustrate issues surrounding the topic of "Will the cartel stand?" An economic spatial oligopoly model of Canada which estimates trade flows and the economic benefits to provincial producers as well as to consumers, is developed. The model shows that a major increase in the supply of broilers from Ontario would cause economic losses to accrue to producers in all provinces if the current supply management system remains intact. On the other hand, this policy could force retaliatory action on the part of other provinces. This action would cause a breakup of the national supply management cartel. Under a new regime in which marketing boards from each individual province compete with each other for a share of the Canadian Market, Ontario producers could accrue additional economic benefits if they could act as a leader in the industry. In this scenario, producers in the prairie provinces would also accrue economic benefits while producers in British Columbia, Québec and maritime provinces would suffer losses.
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