One of the challenges we see in our part of the country is the weather this year, with the climate change. This year we've experienced excellent weather for growing crops but less than desirable weather for harvesting. It's very problematic for our corn and soybeans. There are mycotoxin issues that plagued the milling wheat industry during the last year, but it is much improved this year.
Quality standards in specialty crops such as oats, flax, and industrial oils have been difficult to maintain. Our transportation costs are a major challenge. Fuel is expensive and tolls are high. Certain regions lack marine and rail infrastructure, and the predominant movements are by truck, either in bulk or in containers.
Effective backhauls are critical to low freight rates. There is a fall competition for all the fall crops we have, including potatoes, corn, soybeans, and carrots, all at the same time, and it puts quite a pressure on our trucking industry.
Inspection requirements in relation to our plant and product standards make the industry nervous. While domestic trade is predominantly regional, international market access and open borders are important to the region, as is a stable Canadian dollar. Recently our sales have gotten larger, with more commercial brokerage firms playing a much more pronounced role in the Maritimes.
There is certainly a lack of processing for products such as malt, vegetable oils, and biofuels, and the result is that processed products must all be imported and all our raw materials must be exported. Perhaps our region lacks economies of size.
There may be inadequate commercial drying and storage facilities available in the Maritimes, especially as we expand into more fall crops such as corn and soybeans. Atlantic prices are subject to global trends, as are prices everywhere. Futures trading is practised by the trade but not by the farmers. The impact of newer crops on traditional rotations and farming systems is unclear at this time.
Federal support to explore market opportunities offshore and into the Newfoundland feed market would be very helpful. Making sure that the region can benefit in national research and innovation initiatives is critical. The Grains Innovation Roundtable, the mycotoxin working group, and the Barley Council of Canada are proving very beneficial for our area. Programs similar to the ECODA and the DIAP are successful examples of financial support for research.
Eastern Canada R and D and varietal development in agronomy should be geared to the needs of the region. Our council is exploring ways to consult more effectively with the value chain partners.
Self-regulation and inspection approaches for milling wheat should be resolved. In the wheat industry, accepted levels of mycotoxins should be science-based and practical.
Support for business planning and transportation approaches could address infrastructure challenges and costs. Approaches such as investment tax credits that favour cost-reducing technologies could help supply chain participants become more efficient at a lower cost: as an example, biofuel produces fibre that could be turned into heat to dry grain.
Public-private partnerships should have a degree of transparency, and all supply chain members should be aware of the programs that are available. Sometimes innovation, funding, or investment would appear to favour other regions of the country—for example, in plant breeding—and we certainly need more plant breeding for our own region.
Thank you.