Evidence of meeting #21 for Agriculture and Agri-Food in the 41st Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was pork.
A recording is available from Parliament.
4:50 p.m.
Conservative
The Chair Conservative Larry Miller
We have Ms. Raynault again, oui. She has the first and the third questions.
4:50 p.m.
NDP
Francine Raynault NDP Joliette, QC
Thank you, Mr. Chair.
My question is for Ms. Stefanie Nagelschmitz.
I'd like to know how we can protect our brand on the international scene. Where do we need to invest to be highly visible, very very good, very everything?
4:50 p.m.
Member, Canadian Agri-Marketing Association
It's a very simple question.
For each sector in agriculture, whether manufacturing, retailers, or farmers, it is very much on a case-by-case basis. What works in one industry or for one sector of the industry may not work for the others.
What has been effective in creating big splashes has been a lot of the international shows. I am a little biased, working for a farm show myself. But going to Agritechnica, and EuroTier, which is the world's largest livestock show, also in Germany.... The Canadian Swine Exporters Association attended that show. It was the only Canadian delegation there, but it was really well received. Going to other shows, food shows like that, has been really beneficial to our membership in being able to go as a larger group, with the assistance and expertise of EDC, which provides match-making opportunities and that sort of thing.
That's one example of something that has worked very well for our membership in particular, and it's something we would like to see continued. But certainly it's not the only thing, because it is so diverse and complicated.
4:55 p.m.
NDP
4:55 p.m.
NDP
Francine Raynault NDP Joliette, QC
My question is for all of you.
We know that the issue of trade information is vital for farmers when it comes to the global market. Do you think that Growing Forward 2 should include programs to help acquire this information?
4:55 p.m.
President, Canada Pork International
It's a big problem. Even our own statistics are not always available. Don't ask me about pork prices this morning because I wouldn't know. No one collects that information. That type of service has been cut over the years, particularly by Agriculture Canada. There is no longer any expertise on products within the department. Before, there were experts who could talk about potatoes, beef, pork and so on. Not so anymore. We've lost this expertise over the years.
If we could get back or strengthen all the information on the markets, the statistical data and the qualitative information, that would be great.
4:55 p.m.
President, Canada Pork International
That takes time.
First, you would need to come up with a strategy. That's where Growing Forward can be essential. If this is one of the strategies and one of the pillars of the strategic framework, we will find young people in the system or train them. You learn on the job. You know, it isn't at university that we learn how the marketing of pork or other products works. We learn on the job.
In my case, I came from inspection services. Someone sought me out because I had worked for Agriculture Canada for many years and because we had developed this expertise in product inspection.
So it's a matter of reviewing what you intend to do with it and seeing where the expertise lies, even if it means training people as you go.
4:55 p.m.
NDP
Francine Raynault NDP Joliette, QC
Perhaps Mr. Bast just answered a question about rail services for our members, but I was reading earlier that it's the members who must adapt to the rail service. Could the service not be offered based on the needs of the producers, instead of it being the individuals who must take what the rail service wants to offer them?
They don't have a choice. If the train comes by at 10 a.m., it's at 10 a.m. Why couldn't it be done based on the producer's needs?
4:55 p.m.
Director, Western Canadian Wheat Growers Association
Ultimately it's driven by our buyers. Also, our buyers expect a product to show up on their doorstep at a certain time. Then we're given that timeframe and we try to meet it. The whole chain of action comes into play, and the railway is part of that chain of action. So we order the cars. We order the shipment. They tell us when they can get it there and then we try to meet that and coordinate the ships with that.
The problem is when the railways throw a hiccup into the system. Either they don't show up on time or don't pick up the cars on time. There's no recourse to the railways, but there's a recourse to everybody else in the system, and then the cost gets borne all the way back to the farmer. We've never had an opportunity to dictate to the railways. It's always been the railways dictating their schedule to us.
4:55 p.m.
Conservative
4:55 p.m.
Conservative
LaVar Payne Conservative Medicine Hat, AB
Thank you, Chair, and thank you to the witnesses for coming today.
It's certainly very important to hear your testimony. I'm sure most of you heard the federal government is trying to cut a lot of what one might call "fat" from the budget.
I would like to hear from you what you think might be the most important elements you might receive in terms of funding from marketing, if in fact there was a shrinkage in available funding.
Maybe, Mr. Coutu, you can start, and we'll just work our way down.
February 1st, 2012 / 4:55 p.m.
Chief Executive Officer, Agri-Food Export Group Quebec - Canada
What was the last part of the question?
5 p.m.
Conservative
LaVar Payne Conservative Medicine Hat, AB
If any fat is cut from the budget, what would you see as the most important elements for your organization to keep?
5 p.m.
Chief Executive Officer, Agri-Food Export Group Quebec - Canada
I think every element is quite important. As I mentioned earlier, we're a very grounded organization. It's amazing because in this budget you've got something like 40 or 45 associations all over Canada; if I'm wrong, correct me. Every year, from the beginning of time, we've added associations left and right—we don't know from where—and at the end of the year we're lapsing a lot of money that is not used by the association. I think one of the solutions might be to fund the most established associations throughout the country—and you've got three here at the table—instead of trying to cut the budget of the associations that are very productive around the world. This would be one part of the solution.
As far as the rest is concerned we have a budget every year and every year we're looking for money. Companies are still asking for more and more because the competition is very fierce around the world, even for our big producers like Lassonde, who has to face Pepsi or Unilever, or Biscuits Leclerc, who fights against Kellogg's. These guys need government support.
When we're in bad times it's not the time to cut. On the contrary, we should put in more money to sustain the effort we've put into the markets for the last three, four, five years.
5 p.m.
President, Canada Pork International
I mentioned it in my conclusions. I asked why you look at it as a big expense. It's an investment.
In our case, we spend $4 million a year and our members are telling us that it comes back at $300 million. I'm quite sure that for the $4 million you get it back in the federal coffers pretty quickly.
5 p.m.
Member, Canadian Agri-Marketing Association
I would share the sentiment of Jacques that it is an investment, particularly in the agriculture and agrifood industry. It is such a dynamic industry in Canada that it is exceeding its peers. As I said in my speech, it's the top manufacturing industry in Canada, so certainly when it comes to looking at budgeting, ideally it should not be touched, but obviously that's not necessarily the most realistic answer. But certainly very sparingly....
5 p.m.
Director, Western Canadian Wheat Growers Association
When we look at government funding, again, as my colleague said, investment, yes, that's key. You should always be looking at it as investment.
But maybe we should always be looking first at the administrative costs. It seems that we look at the funding of the actual project and immediately want to cut there. We should be looking first at the administration of the whole thing and at where those costs to run the program are, to see if there are some savings there, rather than cutting the funding, which is the investment, like they've said, in the project.
5 p.m.
Conservative
LaVar Payne Conservative Medicine Hat, AB
I like that answer.
Mr. Bast, you talked about something like 2,000 contracts, forward contracts, right now. That's just for western Canada? Or is that for...?
5 p.m.
Director, Western Canadian Wheat Growers Association
Yes. That's an estimate in western Canada from different grain elevators that we've talked to. They've given us some numbers of contracts that they've done directly with producers.
5 p.m.
Conservative
5 p.m.
Director, Western Canadian Wheat Growers Association
Yes, and tonnes. It depends. Those tonnes or bushels could vary from a thousand bushels to maybe 20,000 bushels.