Evidence of meeting #14 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 chicken.
A recording is available from Parliament.
General Manager, Chicken Farmers of Canada
No, that is not the same thing. With regard to research and the questions that your colleague asked earlier, we think there needs to be an increase in research going forward.
The problem arises when the focus is placed on innovation alone, and not competitiveness. Competitiveness is in another sector. We want to be able to invest in research, competitiveness and innovation.
Bloc
France Bonsant Bloc Compton—Stanstead, QC
If I am not mistaken, what I gather from what Mr. Hardy or yourself, Mr. Dungate, have said, is that the Americans are currently dumping their products into Canada, as a result of their surpluses. That is a way for them to increase revenues and reduce inventories.
General Manager, Chicken Farmers of Canada
Yes, that is a fact. We import close to 8% of our consumption. These imports are only value-added products, such as boneless and skinless chicken breasts. That amounts to approximately 15% or 16% of our market.
Given the retail situation in Canada, the Americans have the capacity to force Canadian processors to sell their fresh meat product. If the product is frozen, it immediately loses 50% of its value.
Consequently, the 15% to 16% of high-value products that are imported into our market put pressure on Canadian prices. Therefore, a price decline in the United States has a significant impact here.
Bloc
France Bonsant Bloc Compton—Stanstead, QC
Mr. Hardy, I come from a large riding where there are many dairy cows. Our producers were also caught up with the mad cow crisis. As well, traceability chips are used in Quebec. We can therefore trace the origin of a cow in under half an hour. The merit of such a system is not always recognized in the rest of Canada.
In your view, does American dumping have an impact on your beef products in Ontario?
President, Ontario Cattlemen's Association
We do have beef come in from the United States, but we also export an awful lot of live cattle from western Canada into the United States. So the trade effect comes back in beef. The largest provinces, Quebec and Ontario, have the biggest consumer base, and they do bring in product. We do not supply all of the high-end parts of that product, so product does come in from the United States.
We would like to see some of that U.S. product displaced by Canadian. It's very important to us. Regarding traceability, we do recognize Quebec's traceability. I sit on the board of the Canadian Cattle Identification Agency, and traceability is very important to us. We're well aware of Quebec's program, and we congratulate you on that.
Conservative
The Chair Conservative Larry Miller
Thank you.
Your time has expired, Ms. Bonsant. I didn't make the rules; I just enforce them.
Conservative
Conservative
Blake Richards Conservative Wild Rose, AB
I want to thank you for being here today.
I have a comment for the Ontario cattlemen to start with. I certainly appreciate the growing chorus of people we've had before us here from all across the country who have shown support for our government's great work and our agriculture minister's great work in terms of opening up export market access, and we certainly appreciate your comments in that regard. We'll continue to work hard on your behalf to make sure we're opening up markets so that we can decrease the dependency on that American market and certainly add value to some of the products that we may not consume here in North America, which you mentioned as well earlier. So I want to make sure that you're well aware that we'll continue that good work on your behalf.
Conservative
Blake Richards Conservative Wild Rose, AB
You may have talked a bit earlier about the COOL legislation in the States. I'm sure you would have. I want to give you an opportunity to talk a bit about that. I want to hear specifically about the impacts that you've seen it have on your cattlemen in Ontario.
President, Ontario Cattlemen's Association
In Ontario, I don't believe we've likely felt the whip of COOL as much as our counterparts in western Canada have. We do ship into the United States. The plants that we go to really do want Canadian content, and they need it to keep their operations viable.
Conservative
Blake Richards Conservative Wild Rose, AB
So you haven't seen it have as big an impact on you in Ontario as we might have felt in the west.
President, Ontario Cattlemen's Association
We haven't felt the same effect. When you go further west, there have been a lot more plants closed to Canadian product. We didn't experience that.
Conservative
Blake Richards Conservative Wild Rose, AB
That's certainly a good piece of news, I suppose. That's certainly positive.
Director, Ontario Cattlemen's Association
That's probably because there weren't that many plants on the eastern seaboard in the U.S. that were taking Canadian cattle to begin with.
Conservative
Blake Richards Conservative Wild Rose, AB
So what you're saying is not so much that it's a good situation, but just that the bad situation hasn't become worse.
Conservative
Blake Richards Conservative Wild Rose, AB
I certainly appreciate that.
I've asked a question to many of the witnesses we've had in our studies that we've been doing thus far, certainly out of my concern for the future survival of the farm, and particularly the family farm. I think of the young generation looking to get onto the farm. I want to ask you a very frank question: do you think there is a future for your industry, for the young generation of farmers coming up, or for those who are hoping to be able to enter the industry or take over their parents' farms? And what are maybe one or two things that you think should be done to help ensure that?
President, Ontario Cattlemen's Association
I'm going to share those with Kim.
I do believe there is a future. Right now, with what we have experienced in the last five or six years, it has been difficult for anyone on the family farm. There is a definite future in the beef industry.
I'm going to let Kim continue on.
Director, Ontario Cattlemen's Association
We're rather bucking the system. We have a son who's going into the beef business. No, he's not taking over our farm; he's buying his own. His cattle are mortgaged, and his farm is mortgaged.
One of the challenges he has is that some business risk management programs don't work very well. If we could make some changes, such as to the AgriStability program, I'm hoping they would help young men like my son. I know of another young gentleman in Saskatchewan who's doing the same thing. The heifer calves haven't been at the price the steer calves are, so you're taking a discount on those heifers. Every calf has to make you money, so the males have to make up for the discount the females have been delivering.
It has been a challenge for him. Obviously he feels that there's a future in it. He loves the industry. When he was a small child, he would go out and help us in the barn. We'd give him a calf for helping. He always picked the best heifer calf. He just has the knowledge.
We truly believe there's a future.
President, Ontario Cattlemen's Association
I would like to thank the government as well for the emergency loan program that was put forward. A lot of youths took advantage of it, and it has been extended. It's very much appreciated, and if it can stay in place to help in any way, it's a great opportunity not just for experienced guys like me, but for young fellows as well.
Conservative
Blake Richards Conservative Wild Rose, AB
I'm glad to hear that you share my optimism as far the future of the family farm is concerned. We certainly wish your son all the best. It's great to hear of young people who want to be on the farm and are choosing to do it and are making a good go of it. I appreciate this, and I'll tell you once again that we'll keep up the good work to ensure that we open up the export markets and allow that opportunity to get increased value for your products.
Conservative
The Chair Conservative Larry Miller
Thank you very much, Mr. Richards. Your time has expired.
Mr. Eyking is next, for five minutes.
Liberal
Mark Eyking Liberal Sydney—Victoria, NS
Thank you, Mr. Chair, and I thank the presenters for coming on this spring day.
With the good and the bad happening in our agriculture department, whether you're a chicken producer or any producer of the SM5 or are a grain or beef producer who is exporting, there's always a concern when the WTO meets. Rulings or regulations that come out of it could have a big impact on your industries, as you know.
I was involved years ago with those talks in Geneva, and the mission was spearheaded by two departments. The trade minister and the agriculture minister tend to steer where the negotiations are going at these meetings.
I have a question for both the chicken representatives and the beef representatives here today. My questions would be these. Do we have the horsepower and the clarity at these meetings now? Are we losing ground at these talks? What should these ministers be doing to help our producers in this country get a better share of what's happening in the world?