Thank you, Mr. Chairman.
Thank you for your presentations. It seems that we are discussing input costs quite often in the Agriculture Committee. Unfortunately, we are never talking about a decrease of input costs but always of their going up. This is an issue that we are studying regularly. Your opinions can help us find solutions that we will then submit to the Minister. Maybe there is no magic bullet, but we still discuss and even get information that will allow us to receive some good advice.
You are probably aware of the study sponsored by Keystone Agricultural Producers, KAP, that was recently done by PricewaterhouseCoopers. I am asking myself some questions concerning statistics on fertilizer price increase. That study compares fertilizer prices in Manitoba and Saskatchewan with those in North Dakota. We are living alongside our American neighbours and products can freely cross the border thanks to NAFTA.
What I find intriguing in that study is that the differential was only 1% in 2004. This is a quasi parity. However, in 2006, American prices were 10% lower. In 2007, there is a 33% difference and for anhydrous ammonia, our price was 63% higher. We are no longer on a level playing field with the Americans. Given the rise of the Canadian dollar, our purchasing power should increase and we should be able to buy our products at a lower cost.
How is it that instead of diminishing, the price gap is increasing? As I am not an economist, I find it difficult to understand this. I would like to get your comments on this.