Agriculture Committee on Nov. 26th, 2007

[Jean-Guy Vincent]

Yes, we have these advantages, our product is recognized. But at the present time, we have to support our hog industry in Canada. That is what we are saying.

At the World Conference in China, all the countries in the world recognized this fact. Once retailers base their prices and the sale of the product on a dumped product, how can the other countries compete? That is why there is a concern in Canada and Quebec that we will no longer be in the game once the drop in production occurs, and at that point, two countries will be exporting.

[Jean-Yves Roy, Bloc, Haute-Gaspésie—La Mitis—Matane—Matapédia, QC]

Yes, but the trend at the moment—and this is my concern—is not about the quality. I have to be careful here, I do not want to generalize. We really are in more of a price market than in a quality market at the moment. That concerns me in that there is a movement in Quebec, and I can see it happening, that people are more interested in quality. But is the same true elsewhere in the world? I do not think so, except perhaps in Japan, where quality is extremely important, and perhaps in Europe. But elsewhere in the world, that is not the case.

[Jean-Guy Vincent]

In terms of Canada's export volume as compared to the world production, I think there is a great deal of room to sell our Canadian products throughout the world. That is why it is important for the Government of Canada to maintain our production at a level such that... Producers have invested a great deal to achieve this high-quality product.

[Jean-Yves Roy, Bloc, Haute-Gaspésie—La Mitis—Matane—Matapédia, QC]

Yes.

I have a very simple question for Mr. Dessureault. Are producers paying the inspection costs in the United States?

[Michel Dessureault]

I have no idea.

[Jean-Yves Roy, Bloc, Haute-Gaspésie—La Mitis—Matane—Matapédia, QC]

You have no idea.

Essentially, you are saying that we are not competitive because we are the ones paying for inspection costs, to the tune of approximately $30 million. I cannot remember who talked about this. Do U.S. producers pay for inspection costs themselves?

[A voice]

No.

[Jean-Yves Roy, Bloc, Haute-Gaspésie—La Mitis—Matane—Matapédia, QC]

No. Yet here, Canadian producers are the ones paying. Is that what you are telling us?

[A voice]

Yes.

[Jean-Yves Roy, Bloc, Haute-Gaspésie—La Mitis—Matane—Matapédia, QC]

Okay. That answers my question. If this is the case, the government should make an effort. If U.S. producers are not paying for inspection costs, I do not see why Canadian producers should be expected to. That is essentially your request concerning inspection costs. Okay.

Thank you, Mr. Chair.

[The Chair, Conservative, James Bezan]

Merci beaucoup.

Mrs. Skelton.

[Carol Skelton, Conservative, Saskatoon—Rosetown—Biggar, SK]

Mr. Littlejohn, you mentioned in your presentation that U.S. production is increasing rapidly in hog production. Is that correct?

[Curtiss Littlejohn]

Not production, no.

[Carol Skelton, Conservative, Saskatoon—Rosetown—Biggar, SK]

I thought you had mentioned that. I guess I misunderstood.

I was told the other day by a group of producers that--

[Curtiss Littlejohn]

I did mention that sow slaughter has increased.

[Carol Skelton, Conservative, Saskatoon—Rosetown—Biggar, SK]

I thought you said pork production.

I heard from a group of producers last week. Are the Americans increasing about 10% per month, or is that 10% a year in their production? What is that number?

[Curtiss Littlejohn]

In the last twelve months they've been up about 4%, but conversations I actually had this morning on my drive in...American producers are now losing $20 to $22 per head, and they're starting into a liquidation in their sow herd also.

[Carol Skelton, Conservative, Saskatoon—Rosetown—Biggar, SK]

Okay.

Mr. Moffett, you mentioned there were four producers in Saskatchewan producing over $3 million worth of hogs a year. Is that correct?

[Stephen Moffett]

Maybe I can clarify that. What I indicated was we were concerned about the caps on the CAIS program and the greenhouse program.

[Carol Skelton, Conservative, Saskatoon—Rosetown—Biggar, SK]

Okay, I understand that, but either it's pork producers in Saskatchewan who produce over $3 million a year--

[Stephen Moffett]

They would produce about three-quarters of the hogs in Saskatchewan, and those producers would find themselves over the cap and then obviously not protected on all of their operations.

[Carol Skelton, Conservative, Saskatoon—Rosetown—Biggar, SK]

How many producers are there in Saskatchewan?

[Stephen Moffett]

I don't know that.

[Carol Skelton, Conservative, Saskatoon—Rosetown—Biggar, SK]

Maybe three-quarters...well, okay, I can rough it.

Mr. Vincent, why are the slaughtering plants only running one shift a day?

[Jean-Guy Vincent]

It's because the packing plant owners are the ones who decide. As producers, we ask them to be much more efficient and to run two work shifts.

In a study carried out at the George Morris Centre, Mr. Kevin Grier did a cost analysis of packing plants in Canada, the United States, and more specifically in Quebec. He recommends that all of the packing plants in Canada run two shifts. This is a fact.