Evidence of meeting #11 for Agriculture and Agri-Food in the 40th Parliament, 2nd Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was chair.
A recording is available from Parliament.
March 26th, 2009 / 1:05 p.m.
Conservative
Blake Richards Conservative Wild Rose, AB
Thank you. I appreciate the opportunity to get a bit of perspective from the Maritimes today. Thank you very much for being here. As an Alberta guy, it's not something I often get the chance to get a perspective on, so I appreciate it.
I also appreciate the comments the witnesses in the room have made in support of our government's agenda to try to expand our export markets. We've done a lot of work, and you join a growing corp of the producers and producer groups whom we've heard from who understand the importance of the export markets.
I want to assure you that our government will continue to work very hard to open up those markets to ensure that we can reduce reliance on the American market, so that things like COOL don't have huge impacts and things like BSE won't have huge impacts.
Of course, while that market is an important one, it's important to open up other markets as well. I appreciate your comments in that regard.
It is unfortunate that the Liberals and some of the other opposition parties sometimes don't seem to see the importance of that, but we certainly do.
I'd like to ask a question that I've asked of many of our witnesses during the study we've been doing on the red meat sector, and it's out of my concern for the future of the farm, particularly the family farm.
You guys are both fairly young producers, and you have mentioned briefly, Mr. MacDonald, that you have a son whom you've rather discouraged from even getting involved with the farm. I suppose I can understand that, but having said this, I would like to get your take on whether you really feel that there's a future for your industry in the Maritimes, and if so, how we ensure it.
1:05 p.m.
Past Chair, Prince Edward Island Cattle Producers
We could get more value out of the carcass. We're probably leaving a couple of hundred dollars on the table because of the loss of those export markets. If you factored that back into what we're getting, it would certainly make a difference.
It makes sense to grow beef in the Maritimes. There's all kinds of forage and there's a relatively good supply of high-energy food as well. It's a good fit. It works well with the potato industry. We'd like to be able to stay there and be profitable, but when you're leaving those dollars on the table, and with the dollars it's costing us to process meat in Canada, with the fees and all the hoops we have to jump through to market our cattle.... If some of that stuff were to disappear, there is value in the carcass, if we were just allowed to capture it.
1:10 p.m.
Conservative
Blake Richards Conservative Wild Rose, AB
Mr. Morrison, did you have anything you wanted to add to that?
I would say, certainly, that the question relates mainly to my concern for young farmers wanting to get into the business. If you want to touch on that at all, it would be appreciated.
1:10 p.m.
Director, Prince Edward Island Cattle Producers
Yes. I think we have some younger farmers coming on board. We just need to get profitability back into the marketplace. We need to be a profitable business, and with profitable businesses, family farms will continue and the next generation will come on. But we need direction from the federal government this spring in order to know that we are going to have a program in place and to carry on. We need some direction and we need it ASAP.
1:10 p.m.
Liberal
1:10 p.m.
Conservative
1:10 p.m.
Chair of the Nova Scotia Cattle Producers Association, Nova Scotia Federation of Agriculture
Could I get the name of the fellow right here? What's the name that goes with that face?
1:10 p.m.
Chair of the Nova Scotia Cattle Producers Association, Nova Scotia Federation of Agriculture
I sure appreciate your comments, and I appreciate the way you put them. The only thing we're looking for here in the Maritimes, the only thing we can tell you in the short term to put profitability back into our industry, is that we'd like the federal government to come to the table, and we'd like them to come to the table to discuss how we do exactly what you want done. We'd like to have that discussion with you. We'd like you to show up. Bring your secretary with you and bring some assets. Bring something that has some value as well. If you could organize that and put that together in a very good way, I think probably we could come up with something. We could identify the things that have to be done and maybe move forward.
Thank you.
1:10 p.m.
Liberal
1:10 p.m.
Liberal
Frank Valeriote Liberal Guelph, ON
Mr. MacDonald and Mr. Vissers, whoever—and Mr. Vissers only if he has a different answer from Mr. MacDonald's—is there an additional cost for the removal of specified risk material in Atlantic Canada that is different from any other areas?
1:10 p.m.
Past Chair, Prince Edward Island Cattle Producers
Yes, ours is transported to somewhere in Quebec. I don't know where. We're talking probably upwards of $150 per head.
1:10 p.m.
Executive Director, Nova Scotia Federation of Agriculture
It's a little bit different. The rule in Nova Scotia is that no organics go into landfill, so that wasn't an option. They are developing a compost facility that will be able to handle the SRMs in Nova Scotia. Until that happens, everything goes to Quebec.
1:10 p.m.
Liberal
Frank Valeriote Liberal Guelph, ON
I have another question.
Mr. Lemieux emphasized the importance to this government of exporting, and I understand that. Mr. Vissers, you seemed to suggest that the growers, the producers, are really victims in some way of XL or Cargill, the folks that are processing. I think I heard that—they are the two largest family owned companies, and you made reference to family owned companies. That leads me to believe that really they are the two largest and the only two that have access to these export markets. Yet I have heard before from cattle producers from Alberta that they, themselves, don't necessarily go through XL or Cargill and actually export directly to the United States.
Can you clarify that confusion for me?
1:10 p.m.
Chair of the Nova Scotia Cattle Producers Association, Nova Scotia Federation of Agriculture
I could try that. That's a hard thing to do. I'm not implying that we're being taken advantage of by these two big packing plants. I'm simply stating that over the course of the last 10, 15, 20 years there has been a gradual consolidation, which is a natural thing to happen, by the people who are in a position to become consolidated. The primary producer is not in that position.
The bottom line is that once the consolidation took place at the levels above primary production—all the value chain above primary production—they have the ability to instill some kind of monopolistic tendencies, not to anybody's disadvantage but to their advantage. And more power to them. It's nice to see that happen.
The fact is that the primary producer can't do that, and we're stuck with the result.
1:15 p.m.
Liberal
Frank Valeriote Liberal Guelph, ON
All right.
I have another, probably final, question for both of the folks who are before us, Mr. Morrison and Mr. MacDonald, and those who are on video. It is with respect to Farm Credit.
Mr. MacDonald, or Mr. Morrison, one of you suggested there was some difficulty in gaining Farm Credit's participation, we'll say, or assistance on your operations. Can you be more specific? Is there denial of funds? Are you going to them with proper business plans? Are they making it difficult? I really want some specifics from you.
1:15 p.m.
Past Chair, Prince Edward Island Cattle Producers
It is mostly in regard to debt restructuring. Most banks are willing to negotiate, and we're talking negotiating down. That doesn't seem to be an option at this time with Farm Credit.
1:15 p.m.
Liberal
Frank Valeriote Liberal Guelph, ON
Have you brought those specific concerns to their attention, and have they responded? What have they said?
1:15 p.m.
Past Chair, Prince Edward Island Cattle Producers
Every time I talk to them about that, it is “Well, that's not our policy”, and it ends there.
1:15 p.m.
Liberal
Frank Valeriote Liberal Guelph, ON
Is it your hope that this government will give some direction or change the direction the Farm Credit corporation is going in?
1:15 p.m.
Past Chair, Prince Edward Island Cattle Producers
If there isn't a change made, there will be a lot of empty buildings on P.E.I. We have a lot of empty buildings now, and we're going to have more.
1:15 p.m.
Liberal
Frank Valeriote Liberal Guelph, ON
Finally, can I ask the folks on video conference whether your experience is the same, and can you respond to that question?
