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.
[1] 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.
The Canadian Dairy Commission sets a target price for industrial milk based on production costs, including a 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.