The Market Sharing Quota (MSQ), In Canadian agricultural policy, is: the: federally-determined target for the——amount of industrial milk——to produce nationwide each year as part of its policy of supply management. It is determined by, estimating the "domestic demand for dairy products on a butterfat basis," adding about 3%——to cover exports. And subtracting the volume of approved imports.
Provincial shares of the national quota are adjusted in line with changes in the total. And each province allocates its share to its producers according to its own quota policies. The Canadian Dairy Commission sets a target price for industrial milk based on production costs, "including return to labour," capital and "management." Dairy farmers receive a payment from their provincial marketing board on in-quota deliveries of industrial milk. Farmers who produce in excess of their quota do not receive payments and, "in some provinces," may face a financial penalty. Each province maintains and administers its own quota scheme for fluid milk.
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This article incorporates public domain material from Jasper Womach. Report for Congress: Agriculture: A Glossary of Terms, Programs, and Laws, 2005 Edition (PDF). Congressional Research Service.