Agriculture Committee on March 10th, 2009

[Brian Read]

I can start.

We have a couple that we're working on with CFIA. One is plant segregation, to make these plants more efficient, so that we don't have to identify.... We can allot OTM and UTM in the same building, not use a “first, last” type of thing. We are burdened with the SRM regulation that differs from that of our major trading partner.

The other thing I don't think we can lose sight of is that we have to remember...and I want John to address this as well. Perhaps we can give him a bit of time to do so.

We appreciate all the work the minister is doing. Believe me, it's much appreciated. We understand that the budget will pass—hopefully the people on the other side are nodding their heads yes. No, no, they're not.....

But more important, we look at that U.S. market and become complacent and look at it as part of our domestic trade. I think it's critical that this relationship stay very strong and very transparent. In our company, we think globally and sell domestically. When we talk about “domestic”, we're including the United States as part of our conversation. I have to make that point.

[John Gillespie]

I would reinforce that. We've talked about international markets, and we agree that international markets are great, but the United States is still the key. The world market is in the United States. That is where the world price of beef is set. As goes the United States, so goes the rest of the world.

That's why I'm making reference to COOL here, to emphasize that the United States is by far the key to the profitability of the industry. That is where the price of meat is set, and we have to have full access to that market. If COOL is a non-tariff barrier, it is costing producers in Canada cash.

[Randy Hoback, Conservative, Prince Albert, SK]

Mr. Chair, maybe--

[The Chair, Conservative, Larry Miller]

Your time is up.

[Randy Hoback, Conservative, Prince Albert, SK]

--I'll just ask him to table suggestions to the committee.

[The Chair, Conservative, Larry Miller]

The time is well over.

[Randy Hoback, Conservative, Prince Albert, SK]

But in light of the time, could he table suggestions to the committee?

[The Chair, Conservative, Larry Miller]

Okay. Certainly, I think that's fair.

Did you hear that, Mr. Gillespie?

[John Gillespie]

Pardon me?

[Randy Hoback, Conservative, Prince Albert, SK]

If you have any suggestions, could you table them with us, please.

[The Chair, Conservative, Larry Miller]

That would go to the clerk.

Gentlemen, we're out of time. I want to thank you very much for coming. But before you go, I have, as the chair, a couple of follow-up questions.

A number of you talked about profitability. Mr. Read talked about profitability in his plan. That has to carry down to the industry. Mr. Gillespie said that profitability was a big issue. That seems to be a recurring theme when I talk to farmers.

I have one specific question for Brian. As a producer, I've shipped cows to your plant. When you talk $15 to $20, when you put that over a whole animal, it's peanuts. Do you not think there is a responsibility by the packers, an onus on them, to make sure that the grassroots producer--not the packing facility that owns a bunch of cattle or whatever, but the grassroots producer--is profitable? The other question is why you don't pass this $15 or $20 on to the consumer?

I know the easy answer, that you have to stay competitive. But I heard from the packing industry and producers and consumers, when we went after the “product of Canada”, that this would allow Canadians.... I make a point to buy Canadian. My wife buys Canadian. Some people can afford to do it and want to do it. Some don't care to do it whether they have the money or not. Then there are others out there who plain don't have the ability. But it's my belief that if you make it so the Canadian consumer has the choice, the ones who can, or most of them, will buy Canadian. So I think it takes away that argument.

I'd like you to touch on that as briefly as you can.

Also, this is a yes-or-no answer that any or all of you could answer. Do you think that packers who own cattle should be allowed to access government programs?

Mr. Read, do you want to start?

[Brian Read]

I think you gave me three questions.

[The Chair, Conservative, Larry Miller]

I probably did, Brian.

[Brian Read]

If I miss one, please help me out.

On the first one, you have to understand that at the onset of BSE there was a lot of emotion out there. But I, along with CCA, CBEF, and I think BIC was involved....

I remember, with the Honourable Mr. Easter and some of you in this room--we talked earlier--we wore out many a shoe to try to get that U.S. border opened to livestock. We've seen how important our supply is. There were profits made through the crisis, but that was one of the issues that became really emotional.

We also reinvested in these plants, to make sure they were efficient and they could handle the capacity in this country. As a Canadian, not a meathead, I think we did the right thing.

I believe those dollars have been turned back, Mr. Chair, because of all those efforts in 2003 and 2004, when the border was announced to open again. Now you have the U.S. equivalent for your livestock, whether it's the cull cow, the calf, or the finished steer. John can correct me if I'm wrong on that; there are producers in this room.

So I think you're there. And I think we should compliment each other on how we got there and how quickly we got there.

[The Chair, Conservative, Larry Miller]

Okay. The feeling out in the farming--

[John Gillespie]

I understand that, but I think that's an old story--and some of the old is still current. I apologize, but I think that's miscommunication from this room of what's really happened. Maybe we have to work together on communication; I think we lack that, too.

There was an inner circle who was well communicated with, but there was an outer circle who wasn't. I'll take some of that responsibility.

[The Chair, Conservative, Larry Miller]

I have just one last comment on that. It always seems to be that when there's a hit, it always happens at the farm gate. Whether that's all truth or perception...but a lot of it's the truth.

Just on the other question, does anybody want to answer that with a yes or no?

[Gib Drury]

As a producer, I'm going to go against my fellow producers and say, yes, packers should own cattle. They definitely own cattle as soon as they come into the plant. Should they own them one week out, two weeks out, or six months out when they go into a feedlot? Many feedlotters in the province of Quebec contract their cattle when they buy them so that they know what their sale price is going to be.

I see nothing wrong with that system.

[The Chair, Conservative, Larry Miller]

Should they be able to access government programs?

[Gib Drury]

Yes. Why not?

[John Gillespie]

My answer is yes on that. We have bona fide producers who are much larger than the meat packers when it comes to owning cattle. So it is the Canadian Cattlemen's policy that whether you're big or small, you can access the program.

[The Chair, Conservative, Larry Miller]

The reason I ask the question is this. To me, government programs are out there to help the farmer, the grassroots producer. It is just a question I have heard a lot of comments on already and I wanted to ask here.

So I won't take up any more time. I wanted to get those couple in there.

Again, gentlemen, thank you very much for coming. We have some committee business that we have to tend to with the little time we have left. So thanks again, we appreciate it.

We had on the floor at our last meeting a motion by Mr. Easter. I don't believe it needs to be read in again.

[Wayne Easter, Liberal, Malpeque, PE]

There is a slight change to that motion, Mr. Chair.

Before we get to that, Mr. Chair, some time ago the committee agreed to a subcommittee to look at food safety. Can you give us an update? We are getting lots of calls wondering where that's at. Is that committee ever going to get started? Is there a slowdown on the part of the government, or whatever, not to have it operate? Could you give us an update on where that's at?

[The Chair, Conservative, Larry Miller]

Yes, I can, Mr. Easter.

I just this morning received the name of the new clerk designated. I was just under the assumption that it would be clerks that we have at committee. That's not the case. So I just got that this morning. And I'm sorry, I don't even have the name. Duncan may have it.

Anyway, I was going to do this after your motion but I'll do it now. Everybody get their suggestions for witnesses in this week. We are looking to get a meeting time--it's tentative--and I believe it will be the Wednesday evening on the week that we come back after the break. That's the plan at this point.

Does that answer your question?

[Wayne Easter, Liberal, Malpeque, PE]

Yes. I think it should have been meeting this week prior to the break, but in any event, if that's where things are at, then at least eventually it's will get moving.