Agriculture Committee on April 25th, 2007

[The Chair, Conservative, James Bezan]

Mr. Atamanenko.

[Alex Atamanenko, NDP, British Columbia Southern Interior, BC]

Good morning, thanks for coming.

Before continuing, I'd like to know which agricultural sector is the most important from an economic standpoint here, in the region? Is it dairy products?

[Louis Desjardins]

The most important sector is the dairy sector. There are more dairy farms than any other type of farm. In the past 30 or 40 years, even though the number of producers has declined, the quota has always increased because we buy from the outside and the farms are growing.

[Alex Atamanenko, NDP, British Columbia Southern Interior, BC]

Followed by—

[Louis Desjardins]

I'm talking about the biggest sector in terms of revenue. If we're talking about the number of persons, that would be the maple syrup and grain sector because a lot of farms produce grain, but that isn't the main source of income. There's a lot of maple syrup production here as well. Hog breeding is also quite big.

[The Chair, Conservative, James Bezan]

All right.

[Madam Hélène Méthot]

Our region is the biggest sheep breeding region in Quebec. It's here that you find the largest number of farms and the largest number of animals as well.

[Alex Atamanenko, NDP, British Columbia Southern Interior, BC]

Since we're talking about that sector, madam, you're facing global competition, from New Zealand and Australia, for example. I'd like to know whether what you produce is intended for export or domestic consumption?

[Madam Hélène Méthot]

It's intended for domestic consumption. There was a little trade with the United States before the borders were closed because of the BSE crisis. There was a little trade, but it was mainly in live animals because our sheep are recognized for their good breeding. As regards meat production as such, it's mainly intended for local consumption, and, as I mentioned, we meet scarcely 50% of market needs.

[Alex Atamanenko, NDP, British Columbia Southern Interior, BC]

So we have to import, obviously.

[Madam Hélène Méthot]

We import an enormous amount, mainly from New Zealand.

[Alex Atamanenko, NDP, British Columbia Southern Interior, BC]

Are there any restrictions, quotas to protect our industry, or is it a free market? How does that work?

[Madam Hélène Méthot]

In fact, you're asking me the question during a transition period because, on June 1, a selling agency will be put in place by the Fédération des producteurs d'agneaux et moutons du Québec. So that's a first for sheep production in Quebec. However, since it's not yet in place, I can't tell you exactly how that will go, but we are setting up an organization to market lamb.

[The Chair, Conservative, James Bezan]

Mr. Desjardins.

[Louis Desjardins]

With regard to milk, there are quotas and a control; we can't import milk. As for lamb, I don't know of any import restrictions. It's the law of the free market, I believe. Even though Quebec producers are setting up a common marketing agency, that will change nothing with regard to imports from New Zealand.

[Alex Atamanenko, NDP, British Columbia Southern Interior, BC]

Does it seem that New Zealand's production represents a threat as a result of innovation techniques and all that, the ability to keep the meat refrigerated over a longer period of time?

Do you think that's threatening our industry?

[Madam Hélène Méthot]

It's a concern. Mr. Desjardins was right: putting in place a selling agency won't bring about a closing of the borders, not at all. Instead it will serve to identify the product. There will be a promotion of the Quebec product. However, that doesn't solve the problem of the major player, New Zealand, that's exporting its products here. Setting up an agency won't solve that problem. So we don't have any choice but to take charge and keep up the pace of innovation in our production.

[The Chair, Conservative, James Bezan]

Mr. Desjardins.

[Louis Desjardins]

Lamb and sheep producers used to be able to tell consumers to buy fresh lamb because it was better. It's true that fresh meat is better than frozen meat. We also exported our frozen pork, but we have not gotten to the point where we can export fresh pork to other countries as a result of rapid cooling methods and other means. We are getting the same treatment that we give to others. Those producers are able to export by international transit. So the argument that frozen meat is not as good carries less weight. However, there are costs associated with that type of transportation.

[The Chair, Conservative, James Bezan]

Do you want to add something, Mr. Proulx?

[Charles Proulx]

I'd simply like to mention something since we're talking a bit about trade and products imported to Quebec and Canada. I'm a pork producer. I'll give you an example. Quebec pork production covers 150% of our needs. Despite that fact, we still see supermarket meat counters with pork from the United States, even though it contains products that have been prohibited in food in Canada for the past 10 years. That meat is nevertheless imported to Canada. So when we tell you we need assistance and ask you for permission to fight with the same weapons as our competitors, that's also what we mean.

[The Chair, Conservative, James Bezan]

Thank you very much.

Mr. Easter.

[Wayne Easter, Liberal, Malpeque, PE]

Thank you, Mr. Chair.

Thank you, folks, for making the presentations.

Just on the specifics first, can you give me, Hélène, the name of the program? What was the reason given by the new federal government for cancelling the program on March 31?

[Hélène Méthot]

The program wasn't cancelled, because it wasn't a program itself; it was a project. When you present any research project, there's always a deadline to it. You have to complete all the work within a timeframe of one, two, or three years. For that specific project, the deadline was March 31, and we completed the work to implement this program through all other provinces.

[Wayne Easter, Liberal, Malpeque, PE]

That leads to my second question. Since the whole research centres network changed throughout Agriculture and Agri-food Canada—in 1995 or 1996, or sometime around then—the emphasis seems to be on up-line value-added research and not on primary production research.

You people in this case have taken over the centre, but how much valuable time is spent by researchers and others involved in administration out looking for money for projects like the one that ended, or for private partners to do, really, what I believe government should be doing, federally and provincially? What I hear from researchers is that they're spending half their time looking for money rather than doing research, whereas other countries are paying for research.