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	bibo:abstract "In this paper, we argue that (bilateral) auctions of production quotas induced a rapid convergence in\r\ndairy farm size within provinces in the early years of Canada’s supply management policy and that this\r\neffect was stronger in provinces with a larger number of dairy farms. This contributed to the smallness\r\nand homogeneity of Quebec dairy farms relative to dairy farms in Western Canada. In Quebec, most\r\ndairy farms still rely on the tie-stall milking system, while dairy farms in Western provinces are\r\nlarger and use larger-scale, lower-cost technologies. Regulations on Quebec’s quota exchange have\r\nslowed down the pace at which a farm can acquire production quota, exacerbating the effects of\r\ninput lumpiness, on dairy farm efficiency. Low trading on the production exchange severely constrains\r\nproduction adjustments, making, scale, allocative, and technical inefficiencies more persistent and\r\ninvestment in herd expansion unprofitable."^^xsd:string;
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