Evidence of meeting #10 for Agriculture and Agri-Food in the 41st Parliament, 2nd Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was europe.
A recording is available from Parliament.
President, Canadian Sugar Institute
We've never been able to export to Europe.
Conservative
LaVar Payne Conservative Medicine Hat, AB
Right now, Mr. Walton, as I understand it, most of that sugar from beets goes to the U.S.?
Vice-President, Sales and Marketing, Lantic Inc, Canadian Sugar Institute
Anything we're going to export out of Canada goes to the U.S., yes.
Conservative
LaVar Payne Conservative Medicine Hat, AB
Okay.
You did sort of suggest that there will be opportunity for potentially more into Europe over a period of time.
Vice-President, Sales and Marketing, Lantic Inc, Canadian Sugar Institute
Over seven years.
Conservative
LaVar Payne Conservative Medicine Hat, AB
Over seven years: right. What would happen in terms of the sugar? Would you be sending it south or north? I know that the U.S. also has some big tariffs on sugar and some major issues that we've tried to work on over a period of time.
Vice-President, Sales and Marketing, Lantic Inc, Canadian Sugar Institute
Yes. I mean, it all comes down to an economic equation at the end of the day. Where you can get the best value for your assets and your growers is where you will go. If you look at the economic model today and fast-forward seven years, I would say that Europe would be high on our radar.
Conservative
LaVar Payne Conservative Medicine Hat, AB
Okay. Obviously, the removal of the tariffs would make it much more attractive.
In my recollection—and you can tell me if I'm wrong—it seems to me that a couple of years ago the acreages were somewhere around 40,000 acres for sugar beets, and last year I believe it was around 24,000.
Vice-President, Sales and Marketing, Lantic Inc, Canadian Sugar Institute
Yes. Last year it was around 24,000. That's correct.
Vice-President, Sales and Marketing, Lantic Inc, Canadian Sugar Institute
We were higher, but I don't think we were at 40,000. I think we were at 30,000.
Conservative
LaVar Payne Conservative Medicine Hat, AB
Thirty? Somehow I had that other number in my head.
You probably read the article in the Lethbridge Herald, so I'd like you to comment on Gerald the Third's.... I'm not sure what his name is.
Vice-President, Sales and Marketing, Lantic Inc, Canadian Sugar Institute
I'll let Sandra comment.
President, Canadian Sugar Institute
I think there's perhaps a lack of information about CETA and what it's achieving. Certainly, the acreage is down somewhat in Alberta, and that simply reflects the market situation. The U.S. had an emergency shortage situation for sugar over a period of a few years because of some horrific disasters. They had Hurricane Katrina. They had a million-ton refinery explosion that essentially took a million tons of production out of that market.
It was an extremely unusual situation that created new demand for Canadian beet sugar, which Canada was partially able to fulfill, but many, many countries supplied the U.S. at that time. That was extremely unusual. We don't have that today. We have a 10,000-tonne quota into the U.S. The 24,000 acres reflects that market reality.
We have the Canadian market, which is not growing other than through population growth, and food processing has declined largely as a result of the exchange rate. We need other markets to grow that acreage. CETA, over the long term, should help us do that.
Conservative
LaVar Payne Conservative Medicine Hat, AB
I know that the U.S. is talking about having an agreement with the European Union. I don't know if sugar is on the table or not. I don't know if you have any information on that.
President, Canadian Sugar Institute
I do know, from speaking to people in the industry in the U.S. and Europe, that they don't want it on the table, but their governments do. They're going to have to sort that out. They are both protected markets, so they would both be defensive in that agreement in terms of the industries. We'll have to wait and see.
Conservative
LaVar Payne Conservative Medicine Hat, AB
You did say that any sugar refined from cane in Canada is not allowed into Europe as part of this agreement. Is that correct?
Conservative
LaVar Payne Conservative Medicine Hat, AB
Okay. That's really nice to know.
I don't know how much time I have left.