Thank you, Mr. Chair and dear members. I would like to thank the committee for inviting us to speak about an especially important sector of our economy, food manufacturing and processing.
First off, I would like to acknowledge that I am currently in Mi’kma’ki, the ancestral and unceded territory of the Mi’kmaq people.
Food manufacturing is really the strategic centrepiece—the anchor, if you will—of our entire agri-food sector, and it is slowly eroding. Without a strong food manufacturing sector, controlling our innovation agenda, supporting our farmers and providing high-quality, domestically produced foods to Canadians become much more challenging—much more. Without these, we make our entire supply chain more vulnerable to factors that are often beyond our control, such as climate change, mixed food safety standards, currency fluctuations and logistical disruptions.
Food innovation has become a focal point for most countries in recent years, as governments recognize the importance of growing economies in both rural and urban settings. Innovation will gain greater market currency when achieved in processing. Some countries have achieved greater success than others in fostering a culture of innovative thinking for the food industry. Research that benchmarks countries using specific innovation pillars has never been conducted until now. The Agri-Food Analytics Lab at Dalhousie University, in partnership with Innovation, Science and Economic Development Canada and Food, Health & Consumer Products Canada, compares how countries have been creating proper conditions for the industry to innovate further. To our knowledge, it is the first attempt to compare countries specifically on food innovation. We have been working on this report for about 18 months now, and it will be released in February 2021.
The global food innovation index compares factors contributing to innovation in the food, beverage and agri-food industries across the following 10 countries: Canada, the U.S., Mexico, the U.K., France, Germany, Italy, the Netherlands, Japan, and Australia. Countries were selected to provide geographic diversity within the sample, as well as a range of mid- to top-level performances in terms of GDP. As this index was generated in a Canadian context, countries were also selected based on trade capacities and competitiveness. The framework used for our evaluation is in the appendix of my statement.
Based on the data we currently have, Canada did not perform well, especially under pillars 1 and 2, which cover our regulatory environment and how business competitiveness is affecting our food industry’s overall performance. This is one of the main reasons that the consideration of a code of practice is so critical at this juncture. Capitalizing our operations here while avoiding the scenario of over-regulation is key.
However, here are some hard realities about how deficient our food processing sector has been over the years. Beyond Meat, one of the most successful plant-based companies in the world, should have been Canadian. Maple Leaf Foods, which recently opted to build a $300-million plant in Indiana, should have done so in Canada. Fairlife, a nutrient-rich, ultra-filtered milk, a brand owned by Coca-Cola and now sold in Canada, should have been a Canadian-designed product.
We should, however, celebrate some true achievements in Canada despite our lack of innovative focus. The Leamington story is truly a miracle. The recent Kraft Heinz, Corona and Stella Artois announcements are also very positive steps. The greatest and most effective food supercluster we currently have in Canada, which generates an abundance of innovation, is called President’s Choice, but it is actually a closed innovation system, not an open one.
Protein Industries Canada is one of Canada's best open innovation systems that we have right now, and to replicate such a model for other commodities is worthy of consideration.
Over the past decade, nearly 4,000 food processing plants have opened in the United States, compared to only 20 in Canada.
In addition, 83% of new branded products launched in Canada have been neither designed nor manufactured here. This lack of innovation is deeply rooted in our inability to think creatively or to generate intellectual property for this essential agri-food industry. Human capital is also a problem. There are currently 28,000 vacant positions in this sector, which clearly has a problem building human capital.
Our food processing sector must do more to achieve the ambitious objectives stated in the Barton report. This isn't just an issue of food self-sufficiency; it's also a matter of creating jobs in the regions by promoting greater export growth.
Thank you very much for your attention.
