Protectionism and Institutional Design
This chapter describes and analyzes the political-economic dynamics of institutional change within the Canadian supply management systems for poultry and eggs, using the Canadian egg and chicken marketing models as case studies. The investigation traces the historical origins of the systems as producers searched for means of improving their bargaining position to countervail the power of the concentrated processing, wholesale and retail sectors. It describes the efforts to develop and refine the supply management and pricing models in order to improve their performance in the face of changing market and international trading circumstances. This chapter assesses the performance of the two models by evaluating their response to domestic producer and industry needs while at the same time putting in place the necessary adjustments to effectively respond to new external competitive forces.
The primary purpose of this chapter is to describe in some detail the operation of the Canadian pricing models for chicken and eggs as they have developed over the years and to point to their future evolution resulting from changing market and trade circumstances. Their performance in achieving industry and market objectives for markets experiencing imperfect competition will also be evaluated.
The administered pricing arrangements established by the chicken and egg industries have long been at the center of controversy and debate. Moreover, they have given rise to a wealth of academic research and literature by those interested in assessing the performance of concentrated