Agriculture Committee on April 9th, 2014

[The Chair, Conservative, Bev Shipley]

I'd like to call to order our meeting of the Standing Committee on Agriculture and Agri-Food, meeting number 25.

Colleagues, we have witnesses involved with innovation and competitiveness, which is a study that we have wanted to get into.

Today we have with us, from the Department of Agriculture and Agri-Food, Siddika Mithani, the assistant deputy minister of the science and technology branch; and Gilles Saindon, associate assistant deputy minister of the science and technology branch. We welcome them to the committee.

With that, I want to welcome our committee members back.

Madam Michaud, welcome to our committee as a visitor.

When I look over on this side, we have all of our committee-men back. Thank you very much.

I'm not sure who's making the presentation, but you have 10 minutes, please.

[Dr. Siddika Mithani, Assistant Deputy Minister, Science and Technology Branch, Department of Agriculture and Agri-Food]

Thank you very much.

Good afternoon and thank you for inviting us to speak to you about innovation and competitiveness in the Canadian agricultural sector, from the science perspective.

I am joined here today by Dr. Gilles Saindon, Associate Assistant Deputy Minister of the Science and Technology Branch.

Science and technology continue to be critically important in maintaining the profitability and competitiveness of Canada's agriculture, agrifood, and agri-based products sector. Agriculture is an integral part of the global economy, and as with many other industries, success in the 21st century depends on knowledge, information, and technology, with Canadian farmers and agri-based companies participating in complex multinational value chains.

Fundamentally, the challenge for agriculture is to satisfy the demand for food from a rising and generally more affluent world population. With an abundance of natural resources, Canada is well positioned to respond to this challenge. Science and innovation will be key factors in determining whether the sector's potential can be realized where our resources advantages are translated into commercial opportunities.

The science capacity of Agriculture and Agri-Food Canada, AAFC, has been an important part of Canada's agricultural innovation system for almost 130 years. The need to develop crop and livestock technologies, along with appropriate conservation farming systems suited to unique Canadian conditions, has been a constant and overarching driver of AAFC science investment. The science and technology branch uses an approach based on partnerships, working with industry, universities, and colleges, and other science providers to provide science that enhances the sector's resiliency, fosters new areas of opportunity, and supports sector competitiveness.

Partnerships and collaboration leverage federal research investments by bringing together necessary capacities across institutions and helps to focus research on areas of benefit and importance to the sector. An example is our participation in the Canadian Wheat Alliance. AAFC scientists are participating with colleagues from the National Research Council of Canada, the Saskatchewan government, and the University of Saskatchewan. This is a collaboration built on an investment of up to $97 million in the first five years of this eleven-year initiative to help grow the wheat sector. The Canadian Wheat Alliance will support research in wheat breeding, genomics, biotechnology, and pathology, which will support and improve the profitability of Canadian wheat producers.

International collaboration is also important, and a means by which we keep abreast of developments around the world as well as sharing data and expertise on the world stage. In particular, we are able to assess new ideas and emerging technologies, enhance Canadian science and technology capacity, provide science advice and expertise to support trade and international development, and support AAFC and Government of Canada international commitments.

For example, we are taking part in the durable rust resistance in wheat project, an effort by 23 research institutions around the world to address the spread of Ug99, a serious disease of wheat that threatens production worldwide.

Today our network spans the country with 19 research centres located across diverse agricultural ecozones, serving both national interests and regional needs. Each of our research centres has a critical mass of expertise and specialized facilities. For example, pilot plant facilities at our food research centres at Guelph and Saint-Hyacinthe; advanced genomics capabilities at Saskatoon, London and Ottawa; facilities for swine and dairy in Sherbrooke; and beef cattle at Lethbridge and Lacombe.

But the department recognizes that the sector, and the science capacity available to support it, continues to evolve, and so too must our management and delivery of science and technology. In that context, I want to mention two recent events important in that regard.

One was the 2012 creation of the science and technology branch, a merger of two existing branches that integrated the department's capacity for research, development, and knowledge transfer and achieved a more coordinated interface with industry and other groups.

The new branch is focused on supporting the key priorities of major commodity sectors in meeting key scientific challenges facing 21st century agriculture: increasing agricultural productivity, enhancing environmental performance, improving attributes for food and non-food uses, and addressing threats to the agriculture and agrifood value chain.

A second key event was the renewal of the federal-provincial-territorial agricultural framework, Growing Forward 2. The GF2 consultation process among governments and industry established a clear consensus on the importance of science and innovation, and gathered a wide range of input on industry priorities for science and technology.

The GF2 program suite responds to these priorities, providing both government and industry-led funding to encourage collaborative approaches in addressing the sector's scientific challenges.

The GF2 Agrilnnovation program is a five-year up to $698 million initiative. Of this, $468 million is available for funding projects based on applications from industry. The program supports innovation in three streams: research accelerating innovation, which is stream A; industry-led research and development and knowledge transfer, stream B; and enabling commercialization and adoption, stream C.

GF2 provides funding for research, development, and knowledge transfer activities under streams A and B of the five-year federal Agrilnnovation program.

Stream A, research accelerating innovation, is used by AAFC for upstream scientific research with a focus on understanding and mitigating threats to Canadian agricultural production and addressing long-term challenges and opportunities facing the sector. It is also used to generate knowledge to help the sector enhance its resilience, sustainably increase productivity, improve the bottom line through more efficient use of inputs, and take advantage of business opportunities related to environmental attributes.

Stream B is industry-led research, development, and knowledge transfer. This stream builds on the success of industry-led science clusters and projects funded under the previous agricultural framework, Growing Forward. The program provides funding for industry-led projects and complements activities undertaken in stream A.

Funding under stream B is available for agriscience clusters and agriscience projects. Clusters aim to mobilize and coordinate a critical mass of scientific expertise in industry, academia, and government; they are national in scope, industry-led, and address several themes that are priorities to the industry. They can be commodity-based, or may be horizontal in nature, where they address cross-cutting issues that are of interest to more than one commodity. Agriscience projects are aimed at a single project or a smaller set of science projects that would be less encompassing than a cluster, and may be national, regional, or local.

As of March 24, 2014, there are nine agriscience clusters in place, led by the Canadian Cattlemen's Association, Pulse Canada, Dairy Farmers of Canada, Western Grains Research Foundation, Alberta Barley Commission, Canola Council of Canada, Canadian Poultry Research Council, Canadian Horticultural Council, and the Canadian Field Crop Research Alliance. As well, 14 industry-led agriscience projects cover a broad range of specific initiatives—for example, helping farmers with new production practices that address emerging challenges, or capturing market opportunities by developing new varieties of cereals, oilseeds, forages, and horticultural crops. Discussions within the sector are continuing, which will see additional clusters and science projects in the future.

A common feature of all clusters and projects is that they represent a collective will of industry proponents, from a broad base, to guide cohesive actions by multiple research providers. They all are market-driven or opportunity-driven

Science and technology branch also receives funding from GF2 to improve grower access to newer and more effective pest control tools through the pest management centre's minor use pesticides program. Under this program, AAFC works with provincial governments, industry representatives, and producers to match pest problems with minor use pesticide solutions, establish priorities and gain industry support, conduct field trials, and prepare pesticide submissions for new uses to the Pest Management Regulatory Agency at Health Canada.

I'll close by saying that in the context of our strategic planning around science, we are focused on finding solutions for the sector, taking a comprehensive approach so that all of the research, development, and knowledge transfer we perform comes together to fit within the landscape of other science providers, and we collaborate with these other players—industry, government organizations, colleges and universities, and others—in addressing the scientific priorities of the sector.

We appreciate the opportunity to appear before you today. We'd be happy to answer any questions you may have. Thank you.

[The Chair, Conservative, Bev Shipley]

Thank you very much for your presentation.

I think what has been laid out in front of us, colleagues, is that now we've set a bit of the framework of what we're after here in terms of innovation and competitiveness for this great agriculture industry that we have in Canada. It has laid out a little bit about what we have now and then how does that take us forward in terms of sustainability, research and development, and the innovation part of it. I think it's a great foundation to start on this significant study that we're doing.

With that, I will start with our first round.

Madame Raynault, you have five minutes, please.

[Francine Raynault, NDP, Joliette, QC]

Thank you, Mr. Chair.

I want to thank the witnesses for being here. It's a pleasure to have you.

You talked extensively about innovation in the agriculture and agri-food sector during your presentation. In your view, what really fosters innovation in the sector and what are the main barriers to innovation? The question is for either one of you.

[Gilles Saindon, Associate Assistant Deputy Minister, Science and Technology Branch, Department of Agriculture and Agri-Food]

To my mind, the most important element in a successful innovation chain is coordinating and aligning the efforts of the various partners. That ensures that everyone is performing their role effectively and that we can implement all the pieces we are responsible for and pass them on to the next stakeholder in the chain in a coordinated and organized manner. And anything that prevents clear communication and cooperative working relationships would be a barrier to innovation.

[Francine Raynault, NDP, Joliette, QC]

What are the barriers to effective coordination and cooperative working relationships?

[Gilles Saindon]

We operate in a sphere of shared responsibility, involving stakeholders in universities, provincial governments and the private sector. So we need well-structured tools to ensure all those parties can work together smoothly. That's what science and agri-science clusters do for us. Those are the mechanisms we have put in place, and that is where we focus our efforts.

[Francine Raynault, NDP, Joliette, QC]

You said you work with universities, but we know that scientists have been fired. Does that hinder innovation and research? Does having fewer scientists hurt your work?

[Gilles Saindon]

It's important to consider the entire chain, all the links working together. Of course, more scientists can be hired, but their expertise can also be harnessed through science clusters, allowing us to work with those in universities or the private sector. That's one way to make sure we engage all those people. The existing funding enables us to work with them more effectively.

[Francine Raynault, NDP, Joliette, QC]

Do you have enough funding to work with them?

[Gilles Saindon]

Dr. Mithani talked about innovation in agriculture. The program accounts for $700 million, which gives us nearly $468 million to work with industry on industry projects. That provides us with a solid base.

[Francine Raynault, NDP, Joliette, QC]

Are you short on funding for more research?

[Gilles Saindon]

Demand for funding always exceeds the money we have available, but we are managing to cover the entire sector quite well. A rigorous process is used to select projects to ensure all possible thrusts are addressed.

[Francine Raynault, NDP, Joliette, QC]

What can the federal government do to encourage innovation in the next few years? What programs would you like to see?

[Gilles Saindon]

Again, we'd like any program that makes cooperative working relationships possible. What's important is working collaboratively and bringing forward a variety of perspectives. And that isn't limited to branches of science; it also fosters a good understanding of markets. The clusters make that possible, and certainly, that is knowledge we want to maintain.

[Francine Raynault, NDP, Joliette, QC]

The committee has heard from numerous stakeholders in the agriculture and agri-food sector in the course of previous studies.

Would you say that the federal regulatory framework helps or hinders innovation, and why?

[Gilles Saindon]

I'm not sure I could say exactly whether it helps or hinders innovation. The regulations are complex; and intellectual property issues can sometimes make it difficult to work together as far as the various regulations are concerned.

Over the years, we've found ways to work together effectively. That said, intellectual property is still a big challenge.

[Francine Raynault, NDP, Joliette, QC]

I still have a bit of time left, if I'm not mistaken.

[The Chair, Conservative, Bev Shipley]

You have half a minute.

[Francine Raynault, NDP, Joliette, QC]

The axe just fell on the Senator Hervé J. Michaud Research Farm in Saint-Joseph-de-Kent, near Bouctouche. It's shutting down.

It's a shame to see research farms close. It means fewer scientists working on agriculture and agri-food research and innovation.

What is your take on the situation?

[The Chair, Conservative, Bev Shipley]

Mr. Lemieux.

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

On a point of order, Mr. Chair, I just want to remind I guess all committee members that when we have officials from the department, they're not really in a position, and we shouldn't really put them in a position, where they have to comment for or against government decisions.

So I think our questions should be more on the issue of innovation as opposed to some of these other subject matters.

[The Chair, Conservative, Bev Shipley]

Your point is well taken. I think the department heads would know that and would likely have responded in that way. Thank you for the point of order.

Madame Raynault, your time is up; in fact it's well over now.

Mr. Lemieux, you have five minutes, please.

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

Thank you, Mr. Chair.

Thank you to our witnesses for being here.

I guess I'll just start my comments by saying why I myself am interested in innovation and competitiveness. Certainly innovation has always been important within agriculture, but I would argue it's even more important now, particularly as we need our farmers to be more competitive, because we've opened foreign markets to them. So by putting in place trade deals—for example, with South Korea, and we're going to have a European trade deal implemented in the foreseeable future—this gives our farmers a chance to compete. But we need innovation on the side of our farmers.

So I see this as very essential; it's a very forward-looking study that we want to do. I see it in terms of innovation being able to help our farmers lower their input costs. I'm thinking of lower fuel costs, lower use of pesticides, lower use of herbicides, all saving money for the farmer and making them more competitive, and of course innovation that might help with better yields—for example, better-quality crops.

I'm also thinking of customer-centric crops. What I mean by that is if we're going to sell a particular crop to Europe, they may be looking for certain plant traits that are different from crops we sell to Asia. I think innovation helps our farmers to determine what crops best suit the market that they want to sell into. So I see that as being very important.

I want to thank the department for their initial comments on research, especially through the AgriInnovation program. I also appreciate the fact that you mentioned that there is good partnership and cooperation among the key players within the research and innovation fields, be it in government or within the private sector itself.

I would like to ask something about the AgriInnovation program. You mentioned that there are really three different thrusts. There is a research-type thrust, industry-led type research, and then enabling commercialization of innovation.

Let me first ask a question about stream A, which is research. Could you perhaps explain to the committee, in perhaps just a little bit more detail, how that stream works in terms of funding? What kinds of projects perhaps might be funded under that stream? What's the horizon of stream A? Is it a two-year horizon, a five-year horizon, a ten-year horizon? Does it have a commercialization horizon, or is it broader than that?

[Gilles Saindon]

What I'd like to say on this is that this is the research that we will do as a department; that's all the research under stream A. Particularly it's around the thrust or area of crops, livestock, and food, and also in the area of sustainable production systems in terms of environment. So we've focused and established a few of these emerging problems. For example, we have issues with fruit flies in berry production and fruit production. We also have issues in the area of food safety, and alternatives to antibiotics.

Those were the areas that we identified ahead of time that were part of the development and the discussion with the province when we had the discussion on GF2. The way we go about it is we go through a call for proposal within the organization, and we have a system to approve these projects. These typically span three to four years in scope, and we have a large number of them in the area of the environment as well as crops.