COLLECTIVE MARKETING Genuine spearhead of the UPA, the collective marketing is directly linked to the values of equity and democracy.

It took 12 years (from 1944 to 1956) of struggle and claims for the Quebec farmers to obtain a legislation respecting commercial relations between farmers and purchasers while protecting public interest, that is the Act respecting the marketing agricultural, food and fish products.

An organisation, the Régie des marchés agricoles et alimentaires du Québec, is in charge of ensuring compliance to this Act. Its mandate is to promote the orderly and efficient marketing of farm products, to develop harmonious relations between the various stakeholders and to settle conflicts, taking into account consumers’ interests and the protection of public interest.


THE BENEFITS OF COLLECTIVE MARKETING

The fundamental advantage of the collective marketing of farm products is that it allows for negotiations based on a new balance of power between farmers and purchasers, ensuring fair prices and appropriate remuneration for producers. By grouping themselves according to criteria recognized by the law, farmers are in a position to establish what is referred to as joint plans, which enable them to set conditions for producing and marketing their products. Farmers assume themselves the management of these plans, collectively and democratically, and the plans are funded by contributions paid by all farmers concerned.

This re-balancing of power enables farmers to get a fair price for their products and to extricate themselves out of a position of economic dependency where only one side dictates the rules.

If collective action ensures a better balance of power and provides maximum income for farmers, it also enables them to reduce production costs and to better meet consumers’ expectations. It promotes in particular the creation of tools to help enhance their farming and management practices.

THE COLLECTIVE MARKETING TOOLS

According to the needs and the will of farmers, these tools can take various forms. The producers can opt for research funding, consumer promotion, and market information delivery. They can also define quality and safety standards, and production methods that are likely to better meet market requirements.

The Law also makes it possible to set a framework for negotiations and to ensure compliance with marketing, transport, price, guarantee of provisioning and guarantee of payment conditions. Moreover, producers can decide to pool the sales of their products to obtain the best possible price from the market and to more effectively meet the needs for purchasers.

They can also opt for supply management, a mechanism for adjusting to market needs through the regulation of production volumes. With such systems, everyone wins: consumers have access to reasonably priced products; producers receive remuneration that takes production costs into account; and transformers get greater stability for their supplies, with interesting financial results.

Currently, more than twenty farm production sectors use the powers of the Law to make the marketing of their products more efficient and organized. About ten of them are involved in supply management (e.g.: dairy products, eggs, syrup, rabbit, etc.) and the situation is still progressing. Some sectors feel the need to get further involved collectively in marketing. Thus, when the above-mentioned tools prove to be insufficient to obtain a fair sharing of the richness and a decent price, the Law allows producers to go further and to participate collectively in the transformation (e.g.: slaughtering and cutting).

DEMOCRACY AND EQUITY

All activities pertaining to collective marketing are based on democratic management. For example, a joint plan has to be approved by all farmers concerned through a referendum. Once adopted, the plan is binding for all farmers concerned.

Equity is another of the fundamental values underlying collective marketing. Factually, equity between producers is expressed through various measures that make it possible to provide equivalent marketing conditions for all. Equity is also expressed through equivalent conditions for all purchasers, such as terms of payment, units of measurement, etc.

In a world where we have to struggle with industry giants, there is no doubt that collective marketing, as implemented by the farmers of Quebec, is one of the best response to the phenomenon of concentration.

Through the many benefits it provides and beyond economic considerations, collective marketing appears to be a very interesting option for preserving the farming profession, its way of life and the family character of Quebec’s farm businesses.