Agriculture Committee on April 23rd, 2013

[Blake Richards, Conservative, Wild Rose, AB]

I have several questions, mostly for you, Mr. Buchler.

There has also been some discussion today of Growing Forward 2 and the change and shift toward a greater focus on research and development. I think those who really see the future of the business realize how important that is. I certainly got a sense from your opening remarks that you understand the importance of innovation and research and development.

I know that one of the projects that's been funded—I think it was last year that we gave your group about $2.1 million under developing innovative agri-products initiative—was looking specifically at addressing some of the challenges you face. I think it was looking at a mapping initiative to help growers better understand the various soil and other conditions that are at play in the vineyards.

Could you tell me a bit more about that project and how it has been helpful to the industry? Could you also comment on your feelings about the shift toward innovation and research and development, and whether you feel it's helpful to those in your group, and why?

[Hans Buchler]

Specifically, thanks to that mapping project, we have divided the Okanagan in a number of different regions that are linked, to some degree, to climate parameters to some degree, but also soil parameters. In the long run this will help the industry to make better informed choices on what to grow where profitably, and at the same time to be able to achieve optimum quality parameters.

The project is also linked to irrigation practices. That aspect is really critical in our area. I mentioned that the availability of water is limited, but the application of water in our semi-arid climate is also a tool for impacting the quality of the end product. The mapping, especially in regard to soils but also temperature parameters, has really assisted us in making well-informed decisions on how to time irrigation, for one thing, but also on how much irrigation to apply. The idea is really to keep the grape plant always under a little bit of moderate stress—not too much stress and not too little stress—so it will actually mature earlier and produce more flavour and aroma compounds.

There are other projects under the DIAP that we have done, in which we're specifically looking at irrigation. The mapping project is a basis for research that all other research can then use to be able to classify specific vineyards where we are doing research.

By the way, most of the research we do is actually done in commercial vineyards. Very little research is done on site in Summerland in their own vineyards. They do have a small vineyard for research purposes but primarily for testing product that is not allowed to be used in a commercial situation.

[Blake Richards, Conservative, Wild Rose, AB]

Listening to your response, I heard you talk about projects like that one and others that look at innovation as a way to create a more profitable industry. I think it would then be safe for me to say that you generally support the idea of a focus in regard to funding of innovation and research and development as a way to create a more profitable industry. Would that be a correct characterization of the comments you've made?

[Hans Buchler]

Yes, but I would guess that the focus might be different between different crops.

The wine and grape sector has made a very conscious decision to move towards quality, and I think it is working for us. It might also work for other sectors, but I'm not quite sure and would not presume to give any advice to any of the other producing commodities.

[Blake Richards, Conservative, Wild Rose, AB]

I appreciate your comments. Thank you very much for that.

[The Chair, Conservative, Merv Tweed]

Thank you. I have to stop you there. I'm sorry.

The final round goes to Madame Brosseau.

[Ruth Ellen Brosseau, NDP, Berthier—Maskinongé, QC]

Thank you, Chair.

I'd like to thank both of our witnesses.

Hans Buchler, I just have a few questions for you, because we've had some witnesses come in and we know that Canadian wine represents only 30% of the marketplace, and the remaining 70% is imported.

Do you think the federal government has a role to play, not just in the wine industry but maybe also with an overall long term buy Canadian, buy local vision?

[Hans Buchler]

Oh yes, very much so.

Within the province of B.C. we are reviving the buy B.C. program. Trying to build consumer loyalty at the national level is a very good idea.

I think this is really our chance to secure a long-term market. If you have consumer loyalty, be it within your region, your province, or your country, you have a fairly secure outlet for your product. If you depend very much on your export market, you are very dependent on market fluctuations and competing influences from other large producers.

So I would very much encourage the federal government to develop a very strong campaign to convince consumers to really look for a domestic product first.

[Ruth Ellen Brosseau, NDP, Berthier—Maskinongé, QC]

I know there are a lot of provincial initiatives—buy local, buy from Quebec, buy B.C.—but I think the federal government does need to have a long-term vision and a food strategy, because that would also ensure that we're keeping employment, that we're producing and processing our own food, which in will lead to job creation. We'd also not be dependent on imports.

As you were saying, we're at the mercy of what happens in other countries. Maybe they have climate change and it's dry and they don't produce as much, so they're going to say no and they won't export what we need. It's like a domino effect.

I just want to touch on ice wines. Is there a lot of ice wine production in B.C.?

[Hans Buchler]

There was some ice wine production, I think, this past year. I think some 600 tonnes of grapes approximately—don't quote me on this—were processed into ice wine. It is maybe a little bit of a smaller segment than in Ontario. There are some years where the climate just does not allow you to harvest ice wine before the end of January or early February. If you have to keep your grapes hanging that long, you are losing a lot of product.

[Ruth Ellen Brosseau, NDP, Berthier—Maskinongé, QC]

That is keeping—

[Hans Buchler]

I know that some are still doing it to try to remain in the market. I'm not quite sure that it is a very profitable segment in B.C.

[Ruth Ellen Brosseau, NDP, Berthier—Maskinongé, QC]

Mr. Smith, I was just wondering if I could talk to you about a food strategy, too. Do you think the federal government has a role to play in maybe encouraging Canadians to buy locally, to buy Canadian products? What do you think of that kind of initiative?

[Arthur Smith]

I think that's an important initiative. I think there's an even stronger one, and that would be to encourage people to purchase and change their diet and eat healthier. There's a huge epidemic of obesity out there. We know that. We see it in young children. If we don't want to look at anything else, just look at the cost. Canada can't afford it.

Getting away from the monetary issue, it's a better lifestyle as a result. Kids are healthier and so on. I think we need to put as much effort there as we possibly can. You know what? The buy local will go up with that.

[Ruth Ellen Brosseau, NDP, Berthier—Maskinongé, QC]

Yes, absolutely.

Do I have any more time?

[The Chair, Conservative, Merv Tweed]

Five seconds.

[Ruth Ellen Brosseau, NDP, Berthier—Maskinongé, QC]

Is there anything else you'd like to add? No? Or in general?

[Arthur Smith]

Not on that. I agree with Hans on “Cellared in Canada”. There are a lot of people who would like to get rid of that category. We can't afford to get rid of the category; my comments were with regard to the labelling of it. We have good years and we have not so good years. I think the tragedy—and “tragedy” is a strong word—is in trying to affix some kind of allowable percentage to it. I think that's where the problem is. We have good years, and I'd like to see Canadian grapes, Canadian wine, be picked up first. But you have years when you absolutely need to do blending or you will lose the market. It's a complicated issue.

[The Chair, Conservative, Merv Tweed]

Thank you.

I think the other important part is that regrettably, every time you say “healthy”, you have to go out and prove it to everybody. Even though we know that fresh produce, fresh vegetables, fresh fruits are good for us, the minute you tag “healthy” to it, a million people line up to make you prove it and it becomes too burdensome.

Mr. Payne, on another point of order.

[LaVar Payne, Conservative, Medicine Hat, AB]

Thank you, Chair.

I just wanted to say that Mr. Valeriote's tie is about the same colour as the sugar beets growing in southeast Alberta.

[Voices]

Oh, oh!

[The Chair, Conservative, Merv Tweed]

Well, with that, I'll thank our guests for being here today. We appreciate your input and I'm sure you'll see some of the comments reflected in our final report. Thank you very much.

We're going to take just a one-minute recess while we go in camera. Anyone who is not directly related to that discussion, I'd ask to leave the room.

We'll suspend.

[Proceedings continue in camera]