Agriculture Committee on Dec. 2nd, 2014

[André Coutu]

As a matter of fact, I'm just back from our SIAL Paris show, the largest show in the world, which allows me to meet with different people. I've met with food distributors in the seafood business, for instance. There would be an opportunity right now for the lobster business. There would also be opportunities with shrimp, with oysters from the west part of Canada, maple syrup— immediately—and cranberries, flour. There are many, many types of products.

I was speaking with one of our members who is in the meat business, and he has an EU-approved slaughter plant. He's ready to start selling to the EU. We have 400 companies in Quebec that are members of our group.

To give you a better idea, we have our general assembly coming up in June, and we've invited Mr. Dheilly, from the Canadian embassy in Paris. In my view, he is one of the experts who can help us pinpoint the type of industry and the form our approach should take to get in the market. He'll be coming in for a few days to visit some industries in Quebec, to help them figure out how to get their feet in the door.

[Mark Eyking, Liberal, Sydney—Victoria, NS]

I assume that all of your exporters from Quebec do not just buy products from Quebec; you must buy products from right across the country and funnel them through your operations.

[André Coutu]

No. Right now our mission is for Quebec products only. These 400 companies are all from Quebec.

[Mark Eyking, Liberal, Sydney—Victoria, NS]

Yes, but your raw material must come from across the country.

[André Coutu]

Ah, oui, oui, oui. Of course, yes.

[Mark Eyking, Liberal, Sydney—Victoria, NS]

Okay, thank you.

My second question is to the pork producers.

You mentioned that you have 7,300 hog producers, and two-thirds are for export. Now, we have this situation with the United States, the COOL, and that seems to be a problem for the pork exports to the United States. One would think that this European trade agreement would take a lot of pressure off us relying on the U.S. market.

We had witnesses here before—I think they were pork producers—and they said that southern Europe has big potential, especially with hams. Given that it has big potential, how much potential do you see, and what roadblocks or challenges do we have in some of these countries in the EU? Do they want certain types of hams, or cured a different way? Would there be any pushback from some of these specialty sellers in European countries? I thought they were saying that's where the biggest ham exports would go.

Mr. Wymenga.

[William Wymenga]

Yes, I agree with some of those thoughts. Hams are one of the items we have identified that would fit well as exports into the European market. Ours would not necessarily be a further processed product, but more likely a frozen product, or perhaps fresh. The other cut we've identified that could potentially have effectiveness in Europe would be the shoulder cut.

These are two cuts that we think would make up a good slice of the products that would go into the EU. The nice thing is that the hams are considered a higher-valued cut in the EU than they are in the Canadian and the U.S. markets. That's one of the reasons we're excited about that. This can add to the carcass value overall.

There will be certain challenges going into the EU market. As I mentioned, they may have requirements for some feed additives—one is ractopamine—and perhaps some testing requirements for certain diseases. There are things that need to be overcome, but we believe it's doable, and we look forward to the opportunity to be in the European market.

[The Chair, Conservative, Bev Shipley]

Thank you, Mr. Wymenga.

Now we'll go to Mr. Hoback for five minutes, please.

[Randy Hoback, Conservative, Prince Albert, SK]

Mr. Coutu and Mr. Dupuis, you talked about something I think is very important and that's the follow-up. When you do a trade deal, whether it's one with Honduras, or TPP, or CETA, there's need for follow-up. You are familiar with GMAP that the government has put in place, the global markets action plan for small and medium enterprises, so that they can take advantage. How well are your 400 members aware of GMAP, and what can we do to get them actively pursuing the advantages of a trade deal, so that they actually get out there and start exporting? Maple syrup is a really good example. Whenever I travel, I always grab a couple of bottles. You build amazing good will with that bottle of maple syrup.

But I'm just kind of curious, going back to the GMAP. Are they taking advantage of the consulates and the embassies, to take that market advice and get into some of these markets?

[Raymond Dupuis]

When you say GMAP, do you mean the recent initiative with all the workshops that the minister is having around the country? Okay.

Yes, it's definitely very important to get all these resources together, with the people, people at the post, who have a lot of expertise and know-how, and they already work a lot with the Groupe Export, so that's very important.

I would say that's necessary, but maybe not a sufficient condition for success. As we mentioned, it's very important to work with all the available resources, but it's also very important to devote additional resources, as we mentioned, to the non-tariff barriers, because it's going to be a key point.

The Europeans and the Americans devote a lot of resources to that. They have a system of trade defence and they put a lot of resources. And it's also based on interdepartmental cooperation. It's the way to go. We really encourage the government to go that way.

The other thing, as we've already mentioned, is to put together some sort of matching fund to really stimulate the companies to do what they do best, sell products, export products. And it has been working very well with the U.S. market, and that's what we have to do right now.

[The Chair, Conservative, Bev Shipley]

Thank you very much.

We'll go to Mr. Payne for the last half.

[LaVar Payne, Conservative, Medicine Hat, AB]

Thank you, Chair.

And thank you, Randy, for allowing me to do this.

My question is obviously going to be for Ms. Marsden of the Canadian Sugar Institute. As my colleague on the other side of me here indicated, I have this big sugar beet area in my riding in Taber, and also of course the Lantic sugar beet factory is there.

There's been a lot of discussion on the difficulties to penetrate the U.S. market. That has had an impact, actually reducing the amount of sugar beets grown over the last number of years. I'm just wondering if you could maybe tell us how this might impact those particular sugar beet farmers, the opportunity to add $100 million in exports either in sugar or in sugar products.

[Sandra Marsden]

Thank you.

Certainly the impact of the CETA won't be tomorrow. It will take some time. So it can't address the immediate problems with the United States. In addition to trying to encourage improved export access through CETA, you know, ultimately the TPP would provide much greater opportunity. At least if that isn't negotiated in the near term, given its geographical location, the U.S. is our primary market. The other potential for the west would be Japan, and that could be achieved either through TPP or a bilateral agreement with Japan.

We hope that the CETA will deliver some benefits to Alberta. It could do that. There are some small and medium-sized businesses that are producing confectionery, for example, in Alberta. There is potential to sell more beet sugar to those manufacturers.

[The Chair, Conservative, Bev Shipley]

Thank you.

Now I want to go to Madam Brosseau, please, for five minutes.

[Ruth Ellen Brosseau, NDP, Berthier—Maskinongé, QC]

Thank you, Chair.

I only have a few questions.

Early this morning, we heard from Mr. Laws, of the Canadian Meat Council. I asked him questions about a request submitted to the Standing Committee on Finance with regard to a program which will help businesses to transition. Today, we know that things will have to change. And a little earlier, we talked about the drug Ractopamine.

That said, I think that other changes will have to be made in our meat sector, as well as in Canada's cheese sector.

This question is for the Canadian Pork Council. Would you be asking for some kind of aid to help with changes that would need to be made in order to gain access? In my riding, we have a lot of pork farms and they're getting to the point where they need to do renovations, and they need to think long term. Are there any things that might hinder us and any kinds of things, for bien-être animal

we would have to look at moving forward to make sure when we are making a product that we are moving towards acceptability and the demands that the people in the European Union have for our Canadian pork products?

That's for Bill.

[Technical Difficulty—Editor]

[The Chair, Conservative, Bev Shipley]

Can you hear us, Bill?

Mr. Thomson, can you intervene on that?

[Ian Thomson, International Trade Advisor, Canadian Pork Council]

Well, not being a member of the Pork Council per se, I certainly can't speak to what their plans are to seek any sort of compensation to aid in the transition or whatever. When Bill gets online, maybe he can speak to that.

But I would point out that one of the key issues is with ractopamine in pork. Somewhere around 75% of the Canadian herd no longer relies on ractopamine. The industry in Quebec is already in pretty good shape on that one. I think Ontario might be a little more problematic at this point, but there's a good percentage of producers that are ready. Processors like Lucyporc and others in Quebec have already gotten into the EU market under the existing conditions. When I talk to them, their view is essentially that, had they known what they were getting into at the time, they wouldn't have made the investment necessary to do it. It has just has not been worthwhile under the existing conditions.

So what's to come is more than welcome and will be a stimulus to make whatever investments are believed necessary to get ractopamine out of the herd, which is a requirement anyway, and to deal with issues like trichinella and other requirements the EU will have.

[Ruth Ellen Brosseau, NDP, Berthier—Maskinongé, QC]

Bill, did you hear the question I asked previously?

[William Wymenga]

No, I missed part of it.

[Ruth Ellen Brosseau, NDP, Berthier—Maskinongé, QC]

Okay, I'll ask the question again.

Concerns were also raised by another witness earlier today. To illustrate the problems related to pork, he said the following:

In the case of meat on the bone, we will have to do testing in an accredited laboratory to detect the presence of trichinae, which will increase costs significantly for a problem which barely exists in Canada.

Mr. Laws and his group asked the Standing Committee on Finance that a program be created to help the meat industry when the Comprehensive Economic and Trade Agreement with Europe comes into effect. These are the words he used:

[...] a CETA meat program of $10 million over five years to help the Canadian meat processing industry comply with the costly and constraining EU requirements in the meat import sector.

I would like to know what you think of these things.

[William Wymenga]

It's important that we have access. We certainly agree with the Canadian Meat Council that they're going to need help in this area to put programs together from the Canadian Pork Council's point of view, but we'll do whatever we need to do as far as.... If we want to establish something as trichinella-free, we have to know what the protocols are and then we can follow those protocols and ensure people in the EU that we are free of this particular disease. We don't want this to become an impediment to having a product going into the EU.

[The Chair, Conservative, Bev Shipley]

Thank you very much, Mr. Wymenga and Madame Brosseau.

I want to thank the witnesses for coming and being a part of the second hour.

With that we will dismiss our witnesses.

A request for a project budget was brought up. We need approval, it's the standard in terms of witnesses' expenses, video conferences, and the working meals for the study in the amount of $12,300.

Are there any questions regarding the report from Michel? He's anxious to get it so he can pay the folks.

[Mark Eyking, Liberal, Sydney—Victoria, NS]

I move we approve the budget for Ms. Brosseau.

[The Chair, Conservative, Bev Shipley]

Thank you, it is moved and seconded by Mr. Zimmer.

(Motion agreed to)

Thank you very much. See you Thursday.

The meeting is adjourned.