Evidence of meeting #26 for Agriculture and Agri-Food in the 40th Parliament, 3rd Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was gmo.

A recording is available from Parliament.

On the agenda

MPs speaking

Also speaking

Kelvin Einarson  Director and Secretary Treasurer, Manitoba Forage Seed Association Inc.
Kurt Shmon  President, Imperial Seed (1979) Ltd.
Jim Lintott  Chairman, Manitoba Forage Council

4:50 p.m.

Conservative

Randy Hoback Conservative Prince Albert, SK

In the United States--I guess we'd have to say Canada, too, would we not?

4:50 p.m.

President, Imperial Seed (1979) Ltd.

Kurt Shmon

Not yet. We still do have an opportunity--

4:50 p.m.

Conservative

Randy Hoback Conservative Prince Albert, SK

But you know, if you grow alfalfa in North Dakota, like you said, the bees cross the border...

4:50 p.m.

President, Imperial Seed (1979) Ltd.

Kurt Shmon

Yes, and they say, “Oh, you're going back to that very minute possibility”. Realistically, under the current act, it can already be in Canada with a low-level presence. Like I say, that's going down to the very minute kinds of possibilities.

4:50 p.m.

Conservative

Randy Hoback Conservative Prince Albert, SK

So in the U.S. right now, how much market share do they have in the world market on alfalfa?

4:50 p.m.

President, Imperial Seed (1979) Ltd.

Kurt Shmon

On alfalfa, they're obviously one of the largest ones.

4:50 p.m.

Conservative

Randy Hoback Conservative Prince Albert, SK

So it's about 50%, I understand.

4:50 p.m.

President, Imperial Seed (1979) Ltd.

Kurt Shmon

Correct. It's between them and Australia.

4:50 p.m.

Conservative

Randy Hoback Conservative Prince Albert, SK

In Canada, I understand, our market share is about 10%.

4:50 p.m.

President, Imperial Seed (1979) Ltd.

Kurt Shmon

Of the U.S. market or the world market?

4:50 p.m.

Conservative

Randy Hoback Conservative Prince Albert, SK

The world market.

4:50 p.m.

President, Imperial Seed (1979) Ltd.

Kurt Shmon

On the world market, I believe it could be pretty close to that.

4:50 p.m.

Conservative

Randy Hoback Conservative Prince Albert, SK

Does Canada make its market share based on niche markets or does it make it from just selling alfalfa?

4:50 p.m.

President, Imperial Seed (1979) Ltd.

Kurt Shmon

Canada is an exporting country to begin with, as you're well aware, and we obviously deal with the United States very closely. But the key is that there always is going to be an opportunity for conventional types of alfalfa. With the problems they're having in the United States, we're seeing an opportunity for us to take advantage of this and actually gain market share.

4:50 p.m.

Conservative

Randy Hoback Conservative Prince Albert, SK

Again, this legislation, the way I read it, wouldn't protect niche markets.

4:50 p.m.

President, Imperial Seed (1979) Ltd.

Kurt Shmon

It's going to provide an opportunity, where if you're looking at a market... We're in Canada, so let's just talk dollars for you, then. If you're looking at a potential market in Canada for Roundup Ready alfalfa--like I said, giving the benefit of the doubt that there are going to be a few people out there who want it--you're looking at a market that's roughly $3 million.

You're going to risk $20 million-plus of exports for $3 million? That's not business sense. I'm a private businessman and I would never make a decision like that.

4:50 p.m.

Conservative

Randy Hoback Conservative Prince Albert, SK

I guess that's the problem with this analysis: what numbers do you look at? If I went to the canola stream and looked at the historical numbers, we wouldn't have brought it forward based on this legislation. There's no way. In fact the canola growers said that themselves. The Canola Council--

4:50 p.m.

President, Imperial Seed (1979) Ltd.

Kurt Shmon

But there have been opportunities to do market analysis, to go to the market and ask if they're willing to accept this.

4:50 p.m.

Conservative

Randy Hoback Conservative Prince Albert, SK

Based on what, though? That's the problem. There is nothing in here that tells me what I should use for market analysis.

So if I go out and do a market analysis and came back to say that net gain for the market in the alfalfa industry is to go GMO because we could triple production, x, y, z--

4:50 p.m.

President, Imperial Seed (1979) Ltd.

Kurt Shmon

See? You didn't--

4:50 p.m.

Conservative

Randy Hoback Conservative Prince Albert, SK

--then that would throw you guys right out of business.

4:50 p.m.

President, Imperial Seed (1979) Ltd.

Kurt Shmon

You didn't listen earlier on. This doesn't improve the physical fitness of the plant. You weren't listening. It doesn't make a difference.

4:50 p.m.

Conservative

Randy Hoback Conservative Prince Albert, SK

Oh, but you have to argue... If you're pelleting, you could give it a shot of Roundup and all of a sudden your yield in alfalfa goes up 10% because you have better growing conditions...

4:50 p.m.

President, Imperial Seed (1979) Ltd.

Kurt Shmon

You don't understand the plant. I'm sorry.

4:50 p.m.

Conservative

Randy Hoback Conservative Prince Albert, SK

Well, I'm not trying to insult you. What I'm trying to get across is the point of whose market analysis you use--