Good afternoon, and thank you very much for inviting the Canola Council of Canada to speak with you today about Agriculture and Agri-Food Canada's Growing Forward 2 policy framework.
Let me start by underscoring the importance that our industry attaches to strategic, forward-thinking agriculture policy development at the federal and provincial levels. These five-year reviews of strategic direction are important for a number of reasons, not the least of which is to keep up with the fast pace of change in the agriculture sector.
Canola itself is a good illustration of change and growth. Invented only in the 1970s here in Canada, canola is now Canada's most valuable crop. The Canola Council of Canada represents the canola value chain: growers, seed developers, crushers, and exporters.
Let me give you some basic numbers on our industry. Canola returns the highest value to farmers of any crop: in 2011, it was $5.6 billion of farm cash receipts. The industry supports 280,000 jobs across Canada, and the industry is worth $15.4 billion to the Canadian economy.
Innovation and investment is the backbone of our industry. Our motto is: “Innovative. Resilient. Determined to create superior value and a healthier world.” Constant innovation has led to significant improvements in seed development, production practices, stewardship, and the development of markets. In 2007, our industry announced a stretch goal of 15 million tonnes of sustained demand and production. In 2011, we will reach the 13-million-tonne mark. Through science, innovation, and investment, we are confident in reaching that goal, generating even greater returns to the Canadian economy.
There are two main themes identified in GF2: competitiveness and market growth, and adaptation and sustainability. The two drivers identified are infrastructure and innovation. We agree that these are useful lenses through which to assess the future policy framework direction.
Consistent with these themes, the canola sector has five specific priorities, not all of them related to science and innovation. I'd like to outline these to you, and then of course to be available for any questions you have.
Number one is science and innovation. Canola owes its success to innovation, from seed development through production practices to new uses and benefits of canola. Research, both private and public, is critical to innovation. Through the Canadian agri-science clusters program, the Canola Council is coordinating focused research in partnership with AAFC. The program is driven by producers, industry, and researchers, who collectively determine the priorities and then implement the research plan.
While canola is a big crop in Canada, it is dwarfed by other competitive commodities in the international marketplace, like soybeans and palm. These industries are investing in innovation. We need to ensure a continued partnership between industry and government in Canada on research in order to stay competitive. Research needs to be industry-driven, supported by government, and we must make the most efficient use of resources, which is what the cluster program is all about.
In GF2, we think we can improve on this coordination role and build on our success. We need to continue research on the nutritional benefits of canola. We already have results on reducing the risk of cardiovascular disease. We need to continue our research on reducing inflammation in the body, improving the ability to manage diabetes, and the impact on metabolic syndrome. The results of this research will increase the value of canola, thereby increasing consumption, lowering health care costs, and increasing returns to growers.
Canola meal has the unique ability as an animal feed to increase milk production in dairy cows by one litre of milk per cow per day, on average. But we need research to find ways to improve the energy content of the meal to be able to increase the amount of canola meal that can be fed to swine and poultry.
Last, but definitely not least, we need to continue crop production research so we can increase yields, lower input costs, manage new diseases and insects, improve storage, and ensure growers will be sustainable. Most of this research is conducted at Agriculture and Agri-Food Canada research stations, which are important to our ongoing success as an industry.
Priority number two for us is science-based policies and regulation. Our industry depends on investments from companies that have wide choices on where to undertake research and product development. To attract this investment, we need a predictable, transparent, and encouraging regulatory environment.
The same is true when it comes to accessing markets. The best way to ensure that technical and non-tariff trade issues are not used as protectionist barriers is to ensure that they are based on sound science and that the rules of international trade respect this.
Priority number three is a continued partnership in international market development. One of the most successful programs delivered through the current Growing Forward framework is the agri-marketing program, which is a cost-shared approach to international market promotion.
Our producers and industry have worked closely and strategically with AAFC to promote canola in key markets identified by our board. The program has played a key role in helping lift canola oil's market share in the U.S. to 12%, making us the number two oil in the U.S. In fact, for every $1 invested in U.S. market development, we have seen an additional $1,000 of canola oil sales to the U.S. The program is also helping to promote canola meal in the U.S. and canola oil and its products in Mexico and India. We think we should build on this success by making sure that agriculture commodity promotion is a continued priority in GF2.
Number four is market access. Before we can promote canola in foreign markets, we need access. Today, high tariffs remain in some markets, but in addition to those, we face a wide range of non-tariff barriers. In the last year, for example, canola exports have been affected by concerns over imports of a crop disease to China, feed safety regulation in the U.S., and production sustainability standards in the U.S. and Europe. These are complex issues requiring expertise in science and technical knowledge, but also diplomacy and negotiation.
We applaud the establishment of the market access secretariat within AAFC. Their work, along with that of the Canadian Food Inspection Agency and DFAIT, and the support of Minister Ritz on market access, has helped our farmers and industry maintain important markets in the last years. Increasingly, sustainability is a key consideration in promotion and market access. We are confident that canola will be grown in a sustainable fashion even as we increase production levels. We support having sustainability as a key pillar of Growing Forward 2.
Going forward, we recommend that the government implement a cost-shared program like agri-marketing, but focused on market access, which would feature a close, strategic partnership among farmers, industry, and government to maintain and build market access.
Number five, last but not least, is people. The canola industry needs the expertise and commitment of government staff in AAFC, DFAIT, the trade commissioner service, and the CFIA, as well as other departments. These people are important in terms of research and innovation, but also, many issues in international trade can only be resolved government to government. We encourage the government to support research and international efforts by supporting current staff in these departments and, when required, training new people to take their place.
Thank you for your time. I look forward to further discussion.