I'd like to welcome the committee to Manitoba. It's great to see the committee touring Canada. I certainly thank you for the opportunity to make a presentation today.
I represent Dairy Farmers of Manitoba and sit on the board of directors. I also sit on the board of directors of the Dairy Farmers of Canada, but I will speak today as a producer from Manitoba.
The dairy industry in Manitoba represents 430 producers who generate some $200 million and produce about 300 million litres of milk annually. Dairy Farmers of Manitoba is committed to producing milk according to the highest standards of quality and is totally financed by and represents all dairy farmers in the province.
I believe the committee has heard from the people in B.C. about recognizing supply management as a business risk management program, so I'd like to focus a bit more on market development and trade.
Dairy Farmers of Manitoba believe it is critical to acknowledge the importance of the Canadian domestic market to Canada's agriculture and agrifood economy in the next generation of agriculture and agrifood policy. The bulk of revenue from Canada's agriculture and agrifood production, over 70%, comes from the domestic market.
The biggest market for Canada's farmers and processors is Canada. The Canadian agriculture and agrifood market is a vibrant one that encourages growth and value-added processing. Canada's farmers are the foundation of that growth. Moreover, from a global perspective, of all food produced in the world, 90% is consumed locally. Only 10% is exported internationally. Domestic markets are important to farmers around the world.
The next generation of agricultural policy framework must clearly and explicitly recognize supply management and the three pillars: producer pricing; import controls; and production discipline as Canada's dairy, poultry, and egg business risk management program.
The Canadian dairy industry has become the viable sector we know today because of the supply management system that was implemented four decades ago. Market development strategies have been and continue to be an important element of the Canadian dairy industry. The Canadian market for dairy would not be the viable market we know today without an adequate market development plan.
Dairy farmers alone invest $90 million a year in market development, promotion, and nutrition. It must be recognized that the supply market is a critical element of the market development strategy for the dairy sector.
Regarding the WTO, we understand that the survival of supply management is an uphill battle, but we must remember that unequivocal support for supply management was expressed by the members of the House of Commons in the November 2005 motion. Consistent with that motion, the Canadian government must go beyond by sending a clear message to our trading partners that Canada is serious when it comes to protecting and defending the three pillars of supply management.
Canada is a model when it comes to respecting international obligations. All countries, including Canada, have rights, and invoking Canada's rights may be necessary at times to support the domestic policy objectives.
We should not be shy about exercising these rights in support of domestic policy objectives, including the operationalization of Canada's right to use the special safeguard measures; exercising our rights, such as article 28 of the GATT; using due restraint when considering whether to issue supplementary import permits; and reviewing CITT and CBSA practices to ensure greater transparency and to ensure that producers of raw products have standing in the context of Canada's trade remedy regime. Proceeding with these measures will increase Canada's credibility at the international level.
To conclude, Dairy Farmers of Manitoba believe it is critical to acknowledge the importance of Canada's domestic market for Canada's agriculture and agrifood economy in the next generation of agriculture and agrifood policy. It must clearly and explicitly recognize supply management in its three pillars: producer pricing, import controls, and production discipline as Canada's dairy, poultry, and egg business risk management program.
Thank you, Mr. Chairman. I'll wait for questions.