Conservative leadership candidate Kevin O’Leary says he will protect Canadian dairy and poultry farmers and fight for the sector during a NAFTA renegotiation.

“To arbitrarily remove supply management would cost taxpayers $30-billion,” O’Leary said in a press release Saturday. “The agriculture industry is critical to ensuring a strong Canadian economy, and supply management plays a vital role.”

“I think it is important to help farms become more efficient and foster innovation, one thing is certain: an O’Leary Government will fight for Canada’s dairy and poultry farmers and supply management at every opportunity,” the release reads.

Canada’s supply management system – which regulates the production, trade and marketing of dairy, egg and poultry – has become a key battleground in the Conservative leadership race.

Quebec MP Maxime Bernier, who’s riding of Beauce has one of the highest concentrations of dairy farmers in the country, has vowed to dismantle the system over several years if elected. He has insisted phasing out the system would lead to cheaper milk prices at the grocery store and benefit consumers – an argument firmly disputed by fellow Quebec MP Stephen Blaney.

Blaney has repeatedly argued that eliminating supply management will only hurt farmers.

Until Saturday, O’Leary’s position had been less clear cut. The Toronto businessman has insisted the system, with its $30 billion worth of quotas, shouldn’t be given “up for nothing.”

Still, he hadn’t ruled out including supply management in a renegotiation of the North American Free Trade Agreement. Nor had he said if he would be willing to compensate the sector if concessions were made.

“Every country in the world subsidizes agriculture,” he said in February. “You only give it up when you get something back in return and that you get in negotiation. That’s going to be a long, drawn out debate.” He then insisted he’s “not writing check for $30 billion on the Canadian taxpayer right now.

“Ain’t gonna happen.”

Both Bernier and O’Leary have said they expect supply management will become a key point of contention during the pending NAFTA renegotiation. On Saturday, O’Leary vowed to “fight for” Canadian dairy and poultry farmers.

Canada’s dairy and poultry sectors have already been mentioned in recent signals from Washington around the NAFTA trade deal. U.S. trade nominee Robert Lighthizer was told March 14 by U.S. Senators that he must be tough on Canada during the NAFTA talks, with senators from both parties demanding more Canadian access for American chicken and dairy products.

Dairy access has also been raised in high-level talks between Foreign Affairs Minister Chrystia Freehand and U.S. House Speaker Paul Ryan. Freeland, who is responsible for the Canada-U.S. trade file, has vowed to defend the system.

A NAFTA renegotiation is expected to start later this spring. The U.S. dairy industry has repeatedly written to the White House demanding the sector be included in those talks.

Canada is currently home to some 11,200 milk-producing dairy farms. The industry is largely based in Ontario (3,731 farms) and Quebec (5,546 farms), according to the Canadian Dairy Centre.

Meanwhile, Conservative members are divided on supply management.

A recent Mainstreet Research poll of 839 party members found nearly 40 per cent of Conservative Party of Canada members surveyed are undecided about the file. Another 30.75 per cent thought it should be eliminated; 22.65 said it should be maintained; 6.67 per cent weren’t familiar with the issue.

Current party policy is to defend supply management.