The forum provided by our council actively encourages all provinces and all value-chain organizations similar to the grain elevators corporation to become involved. We have considerable research capacity and infrastructure available regionally in all three provinces. Our members include provincial government representatives, millers, feed companies, processors, researchers, and seed suppliers.
While cereal and oilseed production structurally are secondary to forage in Newfoundland, we are endeavouring to extend our membership to growers in that province. Discussions have been held with industry leaders there to examine ways to further build capacity through identification of the potential synergies that may exist. I guess what we're alluding to there is the fact that most of their grain comes from other parts of the country, and we'd like to engage in a discussion on how we could perhaps change some of that. They have a large handling facility there and handle a lot of corn—or did—and soybeans.
In terms of background, farming in the Atlantic region has been subject to tremendous challenge and change over the past several years. Our livestock industry has declined. Hog production has decreased by 50% or more in some provinces. Local federally inspected livestock facilities for swine processing have all but disappeared. Cow-calf numbers and slaughter capacity are diminished. The local beef slaughter plant in Borden, P.E.I., is incurring huge monthly operating deficits. Despite this regional deficit in livestock markets and the inherent freight premium, it is clear that the region's value-added processing capacity may not be competitive.
On the other hand, the fish-farming sector is increasing. Potato production is stable, with 100,000 acres cultivated regionally, and an abundance of local processing capacity available in P.E.I. and New Brunswick.
Supply management schemes are important to Atlantic growers. These farmers are often our customers. These operating arrangements offer a level of stability and are well respected by them. We support a continuation of these arrangements.
Grain production is in surplus on P.E.I. and in deficit in the remaining provinces. Milling wheat, barley, oats, feed wheat, and corn are all produced regionally. The recent price experience is positive, despite higher input costs. Cereal products are imported from other parts of the country to cover the various shortfalls in local supply. Demand for local cereal grain is stable, with active and recent reinvestment taking place in the feed milling sector. It augments the high regional level of grain grown on farm and fed to livestock. The local customer base includes farmers, feed companies, the fish and fur industries, and flour mills.
Recently there has been exponential growth in oilseed production, primarily soybeans, both identity-preserved and GMO, for P.E.I., and also canola, particularly in northern New Brunswick. In 2011, for example, close to 75,000 acres of beans were planted and 10,000 acres of canola, versus 10,000 acres combined for these crops as recently as five years ago. There is a growing market in the world for vegetable oil, and in countries like Japan, for IP soybeans served as tofu, as an example, for human consumption.
With the help of commercial drying facilities, the region is fortunate to be able to participate in growth in these markets. There are small oil and meal producers starting to crop up locally, with larger processors available in Quebec and offshore, with a reasonable local market for both soybean and canola meal for protein supplementation in livestock feed.
If a major DON toxin problem—that's a toxin in wheat, as you know—may be overcome, there's a ready market for up to 100,000 tonnes of milling wheat for flour produced at our local P&H Milling in Halifax. These market opportunities bode well for the region and help optimize freight, as marine capability is readily available to service them. Contrast that to P.E.I, which no longer has rail capacity and may be short of trucks during a busy fall harvest.
I have another little paragraph or two on critical issues, and then I'll turn this back to Allan.
In order to support the maintenance of growth in the entire Atlantic production system, including cereal and oilseed producers, in the context of Growing Forward 2, our council wishes to comment on two important aspects relating primarily to federal government investment: funding for safety nets and public funds for research or innovation.
It should be borne in mind that with the region’s small size, and with the possible exception of potatoes, our main focus is the domestic not international trade. We take the view that we don't contribute to large global food surpluses. It also means that it is difficult to attract large investments for genetic modification in crops, breeding, or other forms of innovation, for example.
Thank you.