Agriculture Committee on Feb. 1st, 2012

[Malcolm Allen, NDP, Welland, ON]

Sure. I thought that was the case, but I wanted to help this side be clear about what exactly that conversation was. I appreciate that.

You talked earlier—and this is where I need the clarification, because I think I caught the piece about the 40¢—about weights and measures and grading. Could you walk me through that piece again, especially around the issue of grading? What exactly is it that you think we are doing now that we shouldn't do, and what would you like to see it be? I'm not sure I followed it.

[Mike Bast]

Domestically and when we sell to the U.S., CGC essentially is optional if they want that weighing and grading done, but whenever we ship through the ports, it's mandatory. That cost is then being borne by farmers.

All we're looking at is that if our buyer overseas is happier and content with the relationship and feels there is no need for that weighing and grading, he doesn't have the chance to opt out of it. He still will have to pay that, and essentially it will come back to the farmer. We're looking at the farmer's point of view, that if we can bring that to a competitive system that maybe our counterparts around the world aren't using, or aren't having to make the farmers bear, we'd like to enjoy that also.

It's about the relationship, I guess, with your buyer. If they know your quality and your standards are going to be met, then you'll meet them. If you don't, they're probably going to look somewhere else for another buyer.

We just want it optional at the ports. It doesn't mean it will go away; it will just be optional.

[Malcolm Allen, NDP, Welland, ON]

Okay. I'm not 100% sure, but I think I got the general consensus in terms of where you're headed with that.

Stefanie, I heard you talk about a multitude of areas that you kind of go across and cover off with the association. One of them was this localized market area. How much work are we doing with that? I think a lot of us have local markets that seem to be in isolation, somewhat, without any sort of help in a centralized way to help them market Canadian product to Canadians.

I'm wondering what sorts of efforts are there. Do you see an impetus coming from the markets, even, to look at your association and ask you if you can help them get better at what they're doing?

[Stefanie Nagelschmitz]

Are you referring to food products only or...?

[Malcolm Allen, NDP, Welland, ON]

No, it doesn't matter. It can be any kind of product at all.

Just don't mention John Deere.

[Voices]

Oh, oh!

[Stefanie Nagelschmitz]

No problem.

[Malcolm Allen, NDP, Welland, ON]

I'm the guy from Welland, remember, where the Deere plant closed. John Deere and I are not best friends.

[Stefanie Nagelschmitz]

Case IH: I got it.

In terms of local marketing, our association members are often taking it into their own hands. I wouldn't say they necessarily go to federal programs or the federal government. They go through organizations like Foodland Ontario and some of the provincial organizations. I think they do find it very helpful. They can have a little bit more credibility with those sorts of local brands. A lot of municipalities are also adopting those brands, and logos and that sort of thing have been very helpful for our members.

The vast majority of our members are, as I mentioned, equipment manufacturers and that kind of thing. They are really using avenues like our association or farm shows and trade shows to make those one-on-one connections to do that and are not necessarily going through other programs. It's very much through networking and through relationships that they already have or that they create at those events.

[Malcolm Allen, NDP, Welland, ON]

To Mr. Pomerleau, you've already talked about the fact that 25% of pork consumed here is actually imported, at a time when we're actually, according to what you said to us in testimony, reducing the amount of consumption. Yet we're not filling our own market for, obviously, a price reason; somebody has been able to give it to us cheaper—magically.

There are two parts to this question. First, how do you see us overcoming that? I would prefer that, if we're going to consume pork, it be Canadian. On the other side of that, a good number of operators who are Canadian work both sides of the 49th. How much was originally Canadian, perhaps, that went across, and came back, and became American? Or is there an issue to that at all?

Now, as the third part to it, do you see an influx of those who got out when the times got really tough or who scaled back to being almost non-existent? In my area there are some folks who didn't get out of the business but they basically stopped. How many of them do you see coming back?

[Jacques Pomerleau]

As an industry we are working right now on a strategy to win back our market share. At the same time, we have to remember that if the packers and processors get a much better price abroad than here in Canada, that's also something they have to look at. Very likely within the next six months you will hear from us about what this strategy will be.

The Canadian pork industry is 100% Canadian-owned; we are quite an oddity in that sense. The U.S. market represents less than 30% of our total exports. Some are going to the U.S. but are not coming back as such, although some of our packers and processors do have near-ready products sold in Canada that are processed in the U.S., but not exactly from Canadian pork either. We have taken a look at the strategy.

If the prices keep growing, and we expect hog prices will in the next six months to a year, expect many of those that are on hold to come back. Also, especially what we call the integrators, the feed mills that own farms, will grow. We expect an expansion of the industry, because we lost five million hogs per year, mostly because of the COOL in the U.S., but that's another story. We have five million live hogs going to the U.S. Although we lost so many of our farmers, the slaughter in Canada never went down, so we were able to process as many as we had in the past.

[The Chair, Conservative, Larry Miller]

Thank you very much.

Mr. Lemieux.

[Pierre Lemieux, Conservative, Glengarry—Prescott—Russell, ON]

Thanks very much, Chair.

Thank you to our witnesses for being here.

I think it's fair to say that as a government we truly value expanding our international markets for our farmers. I must say, not only is Minister Ritz a strong advocate, he's on the ground in these foreign countries promoting Canadian agriculture. I know every time he's gone because I hold the fort back here for him in the House of Commons and on other things; he travels quite a bit. I know he's going back to China to do his work, and he'll be promoting pork and canola and a host of other products in China. I must say, he's been very successful as well, and I think commodity groups across Canada have benefited from his work.

There was a bit of talk about WTO and trade agreements. I will say the advantage of a WTO is if it succeeds, of course, it's a trade agreement with many other countries, but the complexity of dealing with many other countries to put it in place can take a long time. We've moved ahead with bilaterals, with other trade agreements.

I'd like to ask Monsieur Coutu and Monsieur Pomerleau.... In the House of Commons, when we're putting forward trade deals that we want Parliament to approve, we face pretty stiff opposition. Opposition parties fight us tooth and nail on these. We get them through; it takes a long time and it takes a lot of effort, but it's for the good of our farmers. I'd like to know your view on these trade agreements and whether you see them valuing pork, for example, and whether, Monsieur Coutu, you see them valuing the commodities your organization represents.

[André Coutu]

As far as pork is concerned, I'll leave the comments to Jacques.

As far as Groupe Export is concerned, free trade agreements are essential. We're always very pleased to see the Prime Minister or the Minister of Agriculture go abroad and try to open markets for the manufacturers.

The message he sends is that Canada is open to free trade, and this is good for business. No matter what country, it's always a good thing. It's the same with Premier Charest in Quebec, or any premiers, as a matter of fact, who take the time to represent their industry abroad: we applaud.

[Jacques Pomerleau]

You will be busy in the House next week, because we are going with Minister Ritz to China, so sorry about that.

In any case, to give you an example, when we had the Uruguay Round in the mid-1990s.... If you take a look at our export markets now, for 12 out of 16 or 17, we were not there, and they are major markets for us now—Russia, China, you name it. That is for the Uruguay Round.

For the free trade agreements, the best is to come, with Korea especially. You heard us on Korea, so I don't have to talk about that. In terms of Japan, we could still gain a major advantage over the U.S. if we had a free trade agreement with Japan. We are already big in Australia and New Zealand, and we can't afford to lose market share to the U.S. again in those markets. At the same time, if we had a free trade agreement or were part of TPP, then we could gain market share from the EU. That's one thing we have to look at.

Colombia was a good example for us, although it was difficult for you in the House. We have doubled our exports to Colombia in the last year, and it's still going.

We are exporting to Chile, which is also a major competitor for us. We're exporting to Mexico.

Multilateral, bilateral agreements have been a blessing for the pork industry, and if it had not been for those agreements over the years, I don't think we'd be here today, especially not at this size.

[Pierre Lemieux, Conservative, Glengarry—Prescott—Russell, ON]

I suppose it's fair to say that you would like to see—and probably our other guest too, who I didn't ask to comment—the government continue to advance with international trade agreements with other countries, and you'd probably like all MPs, particularly from the opposition, to assist in this matter because it's of great benefit—

[Frank Valeriote, Liberal, Guelph, ON]

Just on a point of order, Mr. Chair, I'm sorry—and I hate interrupting, because I know Mr. Lemieux is easily distracted—but the Liberal Party has supported those trade agreements. We have been concerned about compromising our supply management, but we have supported those trade agreements. So Mr. Lemieux, please be a little more credible in your comments about the opposition not supporting the agreements.

[An hon. member]

That's not a point of order, Mr. Chair.

[Frank Valeriote, Liberal, Guelph, ON]

Yes, it is.

[The Chair, Conservative, Larry Miller]

You're right, it's not a point of order, and most of the ones we get here aren't.

[Pierre Lemieux, Conservative, Glengarry—Prescott—Russell, ON]

I will gladly say the “opposition party”.

[Frank Valeriote, Liberal, Guelph, ON]

You mean the official opposition party.

[The Chair, Conservative, Larry Miller]

Order, please.

You have half a minute, or a little more.

[Pierre Lemieux, Conservative, Glengarry—Prescott—Russell, ON]

No, that's good enough.

[Frank Valeriote, Liberal, Guelph, ON]

I just want the truth to be told.