Thank you, Mr. Chairman, committee members, and certainly welcome to the south Okanagan. It's nice to see such a learned group of folks in our neighbourhood. We appreciate the opportunity today, on behalf of British Columbia cherry growers, to reach out to Ottawa and perhaps expose a few of our local issues to you, and then we can have improvements.
This is my second visit. About seven years ago, I presented to one of the former standing committees, and out of that I must say we had some very good results. So I'm encouraged to be here and I'm encouraged by this process.
The Okanagan Kootenay Cherry Growers Association is a vital but small organization. We represent the B.C. cherry growing industry. We're at $50 million annually now. That figure has doubled in the last five years. We're growing and we're strong and we're vital, and we're looking to be progressive in agriculture in Canada. You have a role to play in that, and we hope that we can come to some resolutions.
Our members rely mostly on exporting cherries. Unfortunately, Canadians can't pay, or are unwilling to pay, the price that we need to get at market in order to justify the expenditures that we have on our farms to produce an incredibly high-quality product.
It is an exciting time, and it's an exciting way to make a living, but there are some issues. One of the issues I would like to speak on today on behalf of the membership is the trade issue.
Last summer we had an incredibly sharp decline in some of our markets, Canadian markets, because our American neighbours to the south were dumping cherries into the marketplace. Both the Toronto and Vancouver markets were affected. On my farm I personally lost sales, and I had sales that we had already secured severely compromised on delivery because of this dumping.
In the case of Toronto, cherries were put in there on consignment. In other words, they were landed into Toronto, and the American sellers said, “Do what you can with them. Just pay what you can.” In Vancouver we had $8-a-case cherries, which is extremely below the cost of production. It doesn't even come close. That's about a quarter of what I need to get in order to be viable.
Ironically, three weeks after all this happened, when basically I was out of the market but some B.C. cherry growers were still in, I got a call from Ottawa, from Agriculture and Agri-Food Canada, and this nice gentleman asked me about the rumours about dumping cherries in Canada, and what could I say about it. I think you can all imagine what I said about that. I think it's unacceptable that this country allows our competitors to dump food into this country that compromises Canadian producers. It's a severe issue to us.
There's no easy answer, however. It's there. It's an issue, and it's a federal issue, and here we are today.
One of our biggest issues, and probably our biggest issue--even greater than that--is our labour. Cherries are a high-labour crop. Agriculture in this valley is very high labour. We have been looking at seasonal workers because we're in and out in four to six weeks as producers, and we've relied, for the last 20 years, on young Quebeckers coming across. At our farm itself we hire 55 every year, annually, all Quebec young people. We pay them just under $300,000 in wages throughout our season. My full-time employee is a Quebecker who started off as a picker and who stayed on. He's been working for us for seven years. His partner is a Quebecker. She's been with us for three years, and they've made a life in the Okanagan Valley as a result of their annual trek across the country.
My wife and I really love those young people, because they have an attitude. They're able to get a top-quality product into the box for us, and we just think that as Canadian producers employing Canadians is important to our farm.
Unfortunately, the competition is not from McDonald's anymore, but from the oil patch. Our competition used to be McDonald's, and I can assure you that we provide a better working atmosphere and a better wage than McDonald's does, so it wasn't hard to compete with McDonald's. Today we're competing with Fort McMurray, northern Alberta, and really high-paying jobs, and it's becoming a larger and larger issue.
The Mexican program doesn't work for us because we're so short term. Our farm can't provide that length of time of employment, and it's just not possible, it's not viable. We are suggesting, though, that we ask the federal government to entertain a backpacker guest temporary work permit system. In New Zealand, cherry producers, who I've met when I travelled down there, have access to this system. Basically when we're short of labour, we could go to the international travelling, backpacker type of workers.
We'd like to ask, on behalf of our producers, that you have a look at that.
Apart from the temporary labour force...it's not the only solution, but apart from that, our full-time people, because of the nature of our business, can't work 12 months a year straight. We just can't. Horticulturally, I can't do my pruning in the winter. Below minus seven degrees Celsius, we have to back off, because it actually damages our trees. As a result, even my full-time person is laid off for six to eight weeks every winter.
Unfortunately, we have noticed on several farms in the valley—it hasn't happened to me personally—employment insurance is now harassing these folks and saying they haven't got a full-time job and need to go and get some other kind of work. That is a terrible negative to our full-time or permanent workforce. It's really difficult. I have put thousands of hours of training into our full-time staff, and to have that compromised simply because we can't provide them year-round work.... We don't think it's a crime that you have to have EI for six weeks a year. We really need some recognition and some sympathy from the federal government.
This brief will be coming to you when it gets translated.
There is a shortage for our farm workers in education and skills development. We do it on-farm, we do it through conventions, but there isn't a really good formal education process for agriculture workers in this country. We need to have a look at that.
As to renewal of the extension services, it's interesting that we have the most amazing federal facilities a 14-minute drive from where we're sitting today, called PARC, the Pacific Agri-Food Research Centre. They are an incredibly valuable tool for us. I can't even phone them today. I challenge any one of you today: I'll give you the name of a research scientist and I challenge you to get through to him by phone. It's impossible. They have a call centre thing now. It's all digital, and you just can't raise them.
I'm suggesting that we open the doors of PARC again. It used to be great, but because of security and some bureaucratic Ottawa kind of thinking, we can't get at them anymore.
While we're in the Okanagan, you're going to talk my language, fellows. I'm not in Ottawa anymore.
What I'm saying to you is that there is a depth of knowledge that I love and we've all paid for. Those are the most amazing people up there. My industry is built on varieties and on knowledge developed in that station. All I need is access to it. Perhaps an extension public service person, or two people, who could be a catalyst between the scientists and us would be a really cheap, simple, and I think very productive way to go.
I want to close, Mr. Chairman, by addressing two or three issues specific to the agriculture policy framework discussions that are going on right now.
I want to draw your attention to the Pest Management Centre. Six years ago I made a presentation to a standing committee, and our biggest issue at the time was getting new products from around the world, with softer, better chemistries, into our farms. We couldn't do it seven years ago, and today I'm really thrilled to report to you that we can. The Pest Management Centre that was formulated under Agriculture Canada is fabulous; it's working. Please don't let this APF discussion destroy that. We have broken down barriers with the PMRA and with our companies. We are now a team.
I was in Ottawa a month ago, as I have been for the last five years, in the minor use priority-setting meetings. I am just thrilled. it is a very successful Canadian agriculture story. Please continue to support it. Please allow those doors, because if you don't, the priorities we set this year will not be developed, and that would be a tragedy. That's a wonderful thing that we did.
On environmental farm plans, I want to again, on behalf of the chair, say that we have to continue to do them. Canadian producers have to be able to prove that we're growing responsibly and are growing safe food. Please let's not muck that up; in fact, let's expand it. Let's work towards mandatory EFPs. That would be fab.
As for the agricultural environment initiative fund, our little organization subscribed to that fund. We were able to take $5,000 and turn it into $40,000 and do research, and actually, we've been able to reduce the number of pesticides we use in cherry production through the agricultural environment initiative fund. It's a fabulous idea.
Finally, Mr. Chairman, there is CAIS and crop insurance—two programs, because we deal with a very volatile crop. We are under threat of winter cold, spring frost, and rain splitting. Those are three very powerful forces of nature. Because of the nature of our crop we really enjoy CAIS, and we're one of the few commodity groups that actually like CAIS.
Keep the old CAIS for cherry growers. You can fix it for the rest of them; that would be great. However, our reality is that we know you can't do that.
As to crop insurance, we use those programs and we need those programs to try to level our income. Right now in my orchards, I have 50% blossom damage. That was from winter cold and spring frost. We have wind machines that we make a heck of an investment in, and we also hire helicopters to blow the rain off to preserve the integrity of that crop. However, sometimes Mother Nature is a pretty powerful person and she has a big bat.
But I would like to see the continuation. I do want to caution and say that it is a little clumsy. These programs are difficult for us. We're not accountants. My wife is very sharp, she's very good, but it's very difficult sometimes, particularly with CAIS, to understand all the forms in it. So if we keep them in place, whatever programs, please think of us as producers as you're setting out your programs, and the understandability and the actual usability of the program. If we stay focused on that, I think it will continue to improve.
Mr. Chairman, do I have one more minute?