Agriculture Committee on June 19th, 2023

[Alistair MacGregor, NDP, Cowichan—Malahat—Langford, BC]

I have a final 30 seconds here. You did issue that letter where you referenced our June 12 meeting and the concerns that this bill would benefit large retailers—I think that was the term—suppliers. Of course, large retailers were the subject of our recent study on food price inflation. Do you have any additional comments you want to make on that point?

[Ron Lemaire]

It's a downward flow. It's not a retail benefit. It's a supply chain benefit. It depends, as I mentioned. Sobey's sells to Target. Target declares bankruptcy. Sobey's had to self-insure to ensure that their growers got paid, or else they were going to have a hole in their own system. This would have been a solution to that, protecting that flow of product and cash.

[Alistair MacGregor, NDP, Cowichan—Malahat—Langford, BC]

Thank you.

[The Vice-Chair, Conservative, John Barlow]

Thanks very much, Mr. MacGregor and Mr. Lemaire.

We'll now return to the Conservatives.

Ms. Rood, you may be sharing your time. You have five minutes, please.

[Lianne Rood, Conservative, Lambton—Kent—Middlesex, ON]

Thank you, Chair.

Mr. Wiseman, I have a couple of quick questions for clarity.

Are you speaking here today as a packer or a grower?

[Brad Wiseman]

I'm speaking here as a processor and not a producer. That's correct.

[Lianne Rood, Conservative, Lambton—Kent—Middlesex, ON]

Has your bank given you guidance on this, or is this just strictly your opinion?

[Brad Wiseman]

This is my opinion based on my past finance experience with EarthFresh Farms Inc. and based on general dialogue on our current banking facility. The banks—

[Lianne Rood, Conservative, Lambton—Kent—Middlesex, ON]

Thank you.

[Brad Wiseman]

—do not have a copy of this legislation. It's not even legislation yet. It's up to us as industry to bring this to them to help them do the analysis.

[Lianne Rood, Conservative, Lambton—Kent—Middlesex, ON]

I'm sorry, Mr. Wiseman. I have only a very short time here. As I said, they're very quick questions.

Does the rest of your company support this opinion today, or is this just your opinion? Are you speaking on behalf of your entire company?

[Brad Wiseman]

I'm here speaking on behalf of EarthFresh Farms Inc.

[Lianne Rood, Conservative, Lambton—Kent—Middlesex, ON]

Wonderful.

I have one quick question for Mr. Lemaire.

Your organization represents a thousand or so companies who fully support this bill. Does any other company not support this bill, other than what we've heard today from EarthFresh?

[Ron Lemaire]

We have not heard from any other company.

[Lianne Rood, Conservative, Lambton—Kent—Middlesex, ON]

Great. Thank you.

I'll cede my time to Mr. Lehoux.

Thank you very much.

[Richard Lehoux, Conservative, Beauce, QC]

Thank you, Ms. Rood.

I have a question for Mr. Lemaire.

What would be the consequences if, instead of taking place quickly, the implementation of the current bill were spread out over a period of five years, for example, as Mr. Wiseman recommends? I find that a bit peculiar. There's been a lot of talk about the banks, but the vast majority of people who have contacted us are producers or they work in the processing industry.

In your opinion, what would be the consequences of staggering the implementation of this bill?

[Ron Lemaire]

The consequences would be ongoing impacts in the U.S. with our trading relationship and payments.

We're receiving anecdotal statements from exporters on disputes over the quality or grade of a product and the payment process. They are taking 50¢ or 75¢ on a dollar and sometimes less, because they're not able to leverage the dispute resolution mechanism in the same way that they did when we had reciprocal arrangements with PACA.

That's a significant burden to the market. It does not provide stability. It does not provide the opportunity for a lot of these organizations to look at capital investments or innovation. It creates some doubt, from what individual companies have told me.

[Richard Lehoux, Conservative, Beauce, QC]

Thank you.

Mr. Wiseman, I'm a little surprised to hear your comments today. It has to be said that we haven't heard this kind of thing very often here in this committee, and this isn't the first time we've looked at the issue of insolvency and the consequences for our producers.

What brings you here today to make this last-minute plea, if I may put it that way? The banks have to be on board, but I think they'll be able to adjust to the bill that's on the table. I don't know if I'm making myself clear, but I find that a bit peculiar.

Mr. Wiseman, why are you so concerned about this important issue for the banks?

[Brad Wiseman]

I'm sorry. Could you repeat that?

[The Vice-Chair, Conservative, John Barlow]

Mr. Lehoux, the translation had a little problem with some of your comments. I'll stop the clock.

Do you want to try to succinctly ask your question for Mr. Wiseman again?

[Richard Lehoux, Conservative, Beauce, QC]

Okay.

I'm sorry, Mr. Wiseman, but I'm surprised to see the reaction you and your company are having today with regard to the banks and the major consequences that the adoption of this bill could have on them. I'd like you to tell us a bit more about that. To be honest, you're the first person to tell us that this is such an important issue.

[Brad Wiseman]

I appreciate the question.

For the last few months we have had direct dialogue with the CPMA. We're very involved with the CPMA. We're on the board of the CPMA.

To move forward with an agenda.... You have a majority and then you still have less than a majority. I don't know what the exact percentage would be that this could affect. I have had direct dialogue with the members of the CPMA and the ones who have been involved with this. We've brought them direct evidence of what the issues are.

We're at the stage now where it has passed second reading, but we're at committee. We need to get it right. We need to have the analysis done by the banking institutions to ensure how they will interpret it. That is the risk.

We do not want to create a risk throughout the entire value chain where the cost of capital will affect every single level. That's the concern I have. I support the industry. We want to get it right. Let's make sure we do the analysis and get it right.

[The Vice-Chair, Conservative, John Barlow]

Thank you, Mr. Wiseman.

Thank you, Mr. Lehoux.

Now it's Ms. Damoff for five minutes, please.

[Pam Damoff, Liberal, Oakville North—Burlington, ON]

Thank you, Chair.

Just for context, Mr. Wiseman, could you give members of the committee a sense of EarthFresh Farms how many sales you do, what you sell and who you sell to?

They may not realize that when they're buying potatoes they're actually buying your potatoes.

[Brad Wiseman]

Thank you for the question.

EarthFresh Farms Inc. is a Canadian produce company based in Burlington, Ontario. We are a grower, packer and distributor of potatoes, especially organic potatoes and exclusive premium varieties, to retailers and food services across Canada and the U.S. With over 15,000 acres of our own varieties of potatoes, the company produces the largest stock of exclusive potatoes in North America. Overall, we pack and ship 450 million pounds of potatoes each year from coast to coast to feed Canadians.

We have four packing facilities, with one in P.E.I. under East Point close to Surrey, P.E.I. It's the largest fresh packing facility on the island.

Our head office is in Burlington. In Millgrove, where we grow, we have a packing facility and storage. Then we have a new facility in Atlanta, Georgia, to service throughout the east coast of the United States and the central U.S.