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In recent years, Canada has witnessed a rapid growth in short food supply chains. As in other countries, such marketing channels have emerged in Canada in response to a growing demand among consumers for fresh, local products. However, a unique feature of Canadian agriculture is that dairy, egg, and poultry production are under supply management. The government requirement for producers in these sectors to purchase a quota ensures that output matches domestic demand. Until recently, though, little attention had been paid to how this system affects the development of short food supply chains in the country. The purpose of our study is to examine this emerging issue. The results of our policy analysis suggest that small farmers in Canada face multiple challenges when seeking to produce and market specialty products that are under supply management. Furthermore, the cost of entering supply-managed sectors for producers varies as each province is responsible for a * Corresponding author: Patrick Mundler, Faculty of Agriculture and Food Sciences, Department of Agri-Food Economics and Consumer Sciences, Université Laval, Quebec; Pavillon PaulComtois, local 4423, 2425 rue de l’Agriculture; Quebec, QC, G1V 0A6 Canada; patrick.mundler@fsaa.ulaval.ca b Daniel-Mercier Gouin, Department of Agri-Food Economics and Consumer Sciences, Université Laval, Quebec, Canada; Daniel-Mercier.Gouin@eac.ulaval.ca c Sophie Laughrea, Department of Agri-Food Economics and Consumer Sciences, Université Laval, Quebec, Canada; sophie.lauhgrea@gmail.com d Simone Ubertino, Department of Agri-Food Economics and Consumer Sciences, Université Laval, Quebec, Canada; simone.ubertino@gmail.com Authors’ Note: Implication from COVID-19 Our research was conducted before the COVID-19 outbreak. Since then, interest in short supply chains and local food has dramatically increased. Certain stakeholders discussed in this article are again asking that the supply management system be changed to allow local farms to produce eggs and chickens for

Is Canada's Supply Management System Able to Accommodate the Growth of Farm-direct Marketing? A Policy Analysis