Evidence of meeting #29 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 semex.

A recording is available from Parliament.

On the agenda

MPs speaking

Also speaking

Jim Brandle  Chief Executive Officer, Vineland Research and Innovation Centre
Bill Emmott  Vice-President, Dairy Farmers of Canada
Jacques Chesnais  Senior Geneticist, Semex Alliance
Peter Watts  Director, Market Innovation, Pulse Canada

3:30 p.m.

Conservative

The Chair Conservative Bev Shipley

I'd like to call our meeting to order, please.

This is meeting number 29 of the Standing Committee on Agriculture and Agri-Food. Pursuant to Standing Order 108(2), we are doing a study on innovation and competitiveness.

Committee, in the first hour we have with us, from Dairy Farmers of Canada, Mr. Bill Emmott, who is vice-president. Welcome, Bill.

By video conference from just outside my home in London, Ontario, we have, from Vineland Research and Innovation Centre, Mr. Jim Brandle, CEO.

Can you hear us, Jim?

3:30 p.m.

Dr. Jim Brandle Chief Executive Officer, Vineland Research and Innovation Centre

Yes, I can. Can you hear me?

3:30 p.m.

Conservative

The Chair Conservative Bev Shipley

Yes, we're all hooked up. Thank you very much. We're just checking the video to make sure that everything is working the way it should, and it is.

We have one hour.

Mr. Emmott, I would ask that you open. You have seven minutes, please.

3:30 p.m.

Bill Emmott Vice-President, Dairy Farmers of Canada

Thank you for the opportunity to participate today in your study on innovation and competitiveness.

I am a fifth-generation dairy farmer near Brantford, Ontario, and my son is just coming on board to be the sixth generation. We have been cow cockies for a very long time.

Dairy farmers have long recognized that research and innovation drives efficiency, gains, and profit. The stability offered by a strong supply management program has allowed dairy farmers to reinvest in their industry on their farms through competitive and comprehensive research programs. Management practices, better technology, and better-quality products for consumers are always important.

Farmers, processors, and governments have worked together to improve and strengthen supply management and increase the diversity of dairy products offered to Canadians. There are more than 1,000 cheeses offered in Canada, various butters, milk with various fat contents—19, to be exact—DHA milk, yogourts, and many other products.

Dairy research is vitally important to it. You'll find inside your package a brochure that lists all our research, what we consider to be some of the most important things we have worked on in the past number of years. Take a look at it sometime at your leisure.

Last month, Dairy Farmers of Canada welcomed the government's announcement to invest close to $945,000 under the agri-marketing program for dairy cattle traceability and to support an integrated on-farm research system called the proAction initiative. Also in your package you'll find a brochure that talks about proAction and what we're doing on farm with it.

These are all financed by dairy farmers as well as yourselves, trying to not only do what we're supposed to do, but also be able to improve it afterwards. Consumers nowadays want to be reassured that this is what happens.

Dairy farmers live and work on their farms every day, and so the environment is vitally important to us.

ProAction provides to us the best management practice, built on sound science derived from strategic and targeted investments in research. We innovate to make the best quality of milk possible. Our Canadian quality milk program is an on-farm food safety program designed to help farmers prevent, monitor, and reduce food safety risks on their farm. This program is based on the sound science that is designed to help farmers implement best management practices and keep records daily to monitor critical areas of food safety. One hundred per cent of our farms will be registered on CQM by the fall of 2015.

Forty years of investing in genetics has made our Canadian-bred cows renowned globally. We're producing more milk today with far fewer cows. In 1970, Canadian cows produced an average of 3,400 litres of milk. In 2012 this had increased to 8,400 litres of milk, or 143%. Demand for our cattle, embryos, and dairy cattle semen is strong worldwide. In December 2013, Minister Ritz announced that Vietnam's largest dairy wants to buy 10,000 additional Canadian dairy cattle valued at $20 million to the Canadian dairy farms.

DFC's yearly investment in research is $1.7 million. Provincial investments in Ontario and Quebec alone double that number. Since 2010, Dairy Farmers of Canada has partnered with the federal government under the agri-science clusters initiative to create the dairy research cluster with projects that address on-farm sustainability, animal health and welfare, genetics, human health, and nutrition.

By the end of 2018, investments in dairy innovation by government and industry will amount to close to $30 million. That will be 71 research projects executed in 23 research institutions across this country. They will involve more than 200 research professionals and training for close to 300 students, our next generation of scientific innovators. These young professionals are being trained for jobs that currently exist and need to be filled with people from the agricultural sector.

We see this as a sign of optimism for the dairy industry. In 2010 the agrifood sector directly provided one in eight Canadian jobs. In Ontario there are more job openings than graduates to fill them. Three jobs are waiting for every agricultural graduate.

Science and innovation needs infrastructure, barns, equipment, land, and other facilities to test new products and to make our animals more comfortable or plant new forages and crop varieties for better feed.

Dairy Farmers of Canada recognizes and appreciates the investments made by the federal government in state-of-the-art dairy research facilities in, for example, Quebec, Saskatchewan, and British Columbia. Industry too is taking these investments seriously. In Ontario we're proud to say that we're investing in the construction of a new state-of-the-art dairy facility in Elora, Ontario, with the University of Guelph and with multiple partners from government, processing, and other businesses within the dairy chain.

We also invest in projects to provide best practices to reduce the impact on the environment and improve the sustainability and vitality of dairy farms. Best practices reduce the carbon footprint as well as save money on energy. One of our cluster studies found that the carbon and water and land footprints for Canadian milk production are among the lowest in the world. It also identified the areas for improvement on farms to allow us to target our best efforts in a more sustainable way. That's in another one of the handouts.

We are committed to drive innovation in dairy, but we need to keep working on strong partnerships with the federal government, building capacity in our sector, developing our research professionals and students invested and engaged in our industry, and ensuring the delivery of results to farmers for efficiency and profitability.

For dairy farmers, innovating to achieve excellence through such programs as proAction, the dairy research cluster, and Canadian quality milk enables strategic collaboration with our partners—the government, the industry, and some of the best scientists from across the country—to achieve our shared goal.

I'd be happy to entertain any of your questions.

3:35 p.m.

Conservative

The Chair Conservative Bev Shipley

Thank you very much for your presentation.

We'll now go to Vineland Research and Innovation Centre, to CEO Jim Brandle.

Jim, you have seven minutes.

3:35 p.m.

Chief Executive Officer, Vineland Research and Innovation Centre

Dr. Jim Brandle

Thank you for the opportunity to speak, and thanks to the committee for your wisdom in conducting this study. Innovation and competitiveness in agriculture are so important to our collective prosperity.

As I understand it, to be competitive requires us to be innovative, so in that manner we'd be rapidly creating and deploying new technologies that keep us ahead. We're blessed in Canada with enormous natural resources, and the societal framework to be competitive. Now we seek to better develop the environment for competitiveness, and in particular the innovation element to that.

Why is all this so important, particularly in agriculture? I'd answer that by saying when you look ahead and see the world population growing to nine billion by 2050, and knowing that we need to feed them all, it's clear that we need to innovate. That said, I'm heartened by the fact that we're a rational species, and perhaps the committee might debate that after, but that's my thought. What we've done so far and what we'll continue to do is to think our way through our challenges. We did it thousands of years ago when agriculture itself was invented. Since then our collective innovation efforts in agriculture have allowed us to feed ourselves.

Now, with the burgeoning world population, globalization of markets, and climate uncertainty, our need for innovation in agriculture has never been greater. We need it to continue to compete and to prosper, and, as I said already, to feed ourselves. Simply said, innovation in agriculture is essential. It's essential for our economy, essential for our country, and essential for us as a species. Like the air we breathe and the water we drink, innovation in agriculture is worthy of public interest and, I'd argue, public investment.

If innovation and competitiveness are inextricably linked, then I'd have to say that if we are better innovators, we'll necessarily be better competitors. With that in mind, and seeing the Conference Board gave us our perennial D in innovation again this year, I'd agree we need to examine our circumstance and see if we can do better. It's really around the innovation element of the competitiveness equation that I'd like to share my experience with the committee.

It's important right at the start to understand the difference between research and innovation. Research is discovery and invention, and we do that well. Innovation is the implementation of those ideas to create new products and processes. It is there we need to do better, because innovation creates value for our economy and value for our society. It's also clear to me that part of being better innovators is ensuring that we apply the same resources to innovation that we apply to research, which doesn't mean that we need to reduce our investments in basic research. What it does mean is that we need to increase our investment in innovation so the two are equal.

With that investment must come a commitment to delivering outcomes, like the lower costs and differentiated high-value products that make us more competitive. Then we can transition from being the assimilators and adapters of the technology of others to being the converters of new knowledge into better products and processes. That then allows us to capture the dual benefits of agriculture, the production and processing of raw materials, and the creation of the genetics, the software, the traits, and the new markets that help us compete. After all, the technology base for our agriculture can create high-value jobs, high-value technology exports, and so that, along with all the crops we produce, is what we must also achieve.

I represent the Vineland Research and Innovation Centre. We're new and we work in horticulture—fruits, vegetables, flowers, trees, plants. Horticulture is about healthy eating and positive lifestyles. The farm gate is worth over $5 billion to the Canadian economy. We are a purpose-built innovation organization, an example of the new investment I just mentioned. Of course, the Government of Canada has invested a lot in Vineland, and we appreciate their confidence.

As an organization, though, we aspire to deliver real results, and that means acres in the field and shelf space in the grocery store. We are one of over 160,000 not-for-profit organizations in the country, and that means we're stakeholder focused: we exist to support innovation in the horticulture industry, and their prosperity is our measure of success.

Setting direction and priorities is a shared responsibility. We bring the science and what's possible, and industry brings its needs and new opportunities.

All of our projects are built to deliver real results. In order to do that, they need to have three parts. The first part is a validated consumer or client need that really creates impact. The second is great science, and great science partners. The third is business partners who can deliver the technology to the marketplace.

After all, we're an innovation organization. We're not a manufacturer; we're not a seed company; we're not a grocery retail store; so it's critical to have all three of those elements in place in each project. When you do, your probability of delivering the innovation and being successful are much higher. After all, the process is uncertain, and you want to set the odds in your favour.

Partnering is particularly significant because it builds the clusters that are so important to innovation. Those clusters are literally the place, and that's a virtual or physical place, where organizations can compete and collaborate and innovate.

We have over 160 partners, and that includes grower organizations, businesses, governments, universities, and it is the conversation between science and stakeholders that leads to innovation. The intersection between those two different cultures breeds better ideas and creates context for our work. An example of that work is the cost of production in horticulture, which we took on about three years ago. It's very high and its largely because of labour issues.

We have programs that address the labour supply problem, but the labour cost problem remains. The solution really is automation. We need to automate horticulture processes, as the harvesting of grain crops was automated by the combine back in 1880. The innovation is to lever Ontario's automation industry into horticulture and create robots that plant, harvest, and package crops in a way that best fits our industry and our production systems. This we have done.

With new models and new approaches, and actually setting out to build them so you have to do it, innovation can become Canada's competitive advantage, and it will be innovation that sustains our efforts in the long race that competitiveness is.

With that, Mr. Chair, I'll end my words.

Thank you very much.

3:45 p.m.

Conservative

The Chair Conservative Bev Shipley

Thank you very much for your presentation.

Now we will go to the committee. Will go with five-minute rounds.

Madam Brosseau.

3:45 p.m.

NDP

Ruth Ellen Brosseau NDP Berthier—Maskinongé, QC

I'd like to thank both of our witnesses for their presentations and interesting comments.

I'd like to start with Bill Emmott. You mentioned the proAction initiative. I was wondering if you could go into detail and explain to us what that is, and maybe give us some examples on how farmers are innovating nowadays.

3:45 p.m.

Vice-President, Dairy Farmers of Canada

Bill Emmott

Certainly.

What happens with proAction, it's an on-farm kept process. It's a HACCP-like program. It's very hard to do HACCP on farm. It's hard to control all of your inputs, so it's HACCP-like. It's been approved by Ag Canada.

What you do on the farm is you write down each day what you've done, if you've had to mix a different feed ration, or whatever. You keep track of all of that. If you've done something that's different, you keep a protocol of everything that you do, an SOP, and if you've done something different, then why did you do that? How did you correct it if it was a problem? That's what it is.

ProAction would involve the environment, if you have an environmental spill or something of that sort. Another consideration is animal welfare. If you have a cow with a limpy foot, how are you going to fix it? How are you going to work with quality milk? It's all those sorts of things. It's just a record-keeping system on farms so you can prove that everything you say you've done, you have done.

3:45 p.m.

NDP

Ruth Ellen Brosseau NDP Berthier—Maskinongé, QC

Can you expand on some of the projects that are being studied in some of the new research facilities?

3:45 p.m.

Vice-President, Dairy Farmers of Canada

Bill Emmott

Sure, I'd be pleased to.

Dairy Farmers have done a great deal of work in areas of...well, one of the things we're doing in Ontario, which I know best, is that we're working toward how we can get more product out of the same raw products, how we would stretch the product. That happens a lot.

In British Columbia, they do a lot of animal welfare programs. What's best for the animals to lie on? What's best for their feed? What's best for their feet? In other parts of the country, we do things that are better for their local feed production, and what would fit into a cow's diet in a better way. It's simple things like that.

3:45 p.m.

NDP

Ruth Ellen Brosseau NDP Berthier—Maskinongé, QC

We've had witnesses at committee speak of a brain drain in Canada, where we have brilliant people leaving to go to other countries. I was just wondering if you have experienced that. I guess that question applies to both witnesses.

3:45 p.m.

Vice-President, Dairy Farmers of Canada

Bill Emmott

Sure. The brain drain does apply because we don't have nearly as many professorships, or that sort of thing. Some of the professors will move on to other areas. The universities are used to train the trainers and to teach our children, the next generation of farmers who are going to take all our places around the table. It's vitally important. Is the brain drain as great as...? I like to think that we're exporting knowledge and we're exporting people who can do the work. I think we're keeping the very best ones here.

3:45 p.m.

NDP

Ruth Ellen Brosseau NDP Berthier—Maskinongé, QC

Mr. Brandle, do you have any comments?

3:45 p.m.

Chief Executive Officer, Vineland Research and Innovation Centre

Dr. Jim Brandle

Yes, I do.

I'd agree that, again, we have kept the very best. Certainly in our organization we've grown from just one person to 86 over the past six years. A lot of those people have Ph.D.s and master's degrees. They're very smart and very capable and very entrepreneurial. They've come from across Canada and around the world. So there's a brain gain at the same time. I'd argue that we're doing pretty well. We may lose one, but we may gain a few more.

Overall, I think that's how science and research work: there's a constant flow of people back and forth. Again, that's what helps to keep things fresh and generate new ideas and bring things from other places in the world where they may have done it better or in a way we don't understand yet.

3:45 p.m.

NDP

Ruth Ellen Brosseau NDP Berthier—Maskinongé, QC

I really enjoyed your definition of research and innovation, how innovation is really the implementation of the research. I was wondering if you could comment on the agri-innovation program. Is it adopted in your sectors? Is that something your sectors use often? Is it accessible to everybody, or are there unsatisfactory delays within that program?

3:50 p.m.

Chief Executive Officer, Vineland Research and Innovation Centre

Dr. Jim Brandle

We have a number of projects that either are funded under that initiative or are being evaluated under that initiative. I'd say that it has done pretty well, that it is accessible, that we've managed to put the partnerships together. The requirements are reasonably stringent and you know they want to achieve results at the end of it. So in that sense, it has been very good.

Of course, everything could be done faster. It could have been done last year instead of this year, but it's on the way in. For most of us who have an operating line, we can continue our work and our focus knowing that the program is going to be delivered. We think it has been pretty good. It's good for our organization and I think it's good for our sector.

3:50 p.m.

Conservative

The Chair Conservative Bev Shipley

Thank you very much.

I'll now go to Mr. Lemieux, for five minutes, please.

3:50 p.m.

Conservative

Pierre Lemieux Conservative Glengarry—Prescott—Russell, ON

We did a study just before Growing Forward 2. I'd say we consulted very widely as a committee on what was working well in Growing Forward 1 and what should we carry into Growing Forward 2. Certainly, I'd say almost from every witness we heard that the idea of investing in cost-shared initiatives like the science clusters was a definite winner in Growing Forward 1 and it should be carried into Growing Forward 2, and if possible, increase the funding, because it was working so well. We did increase the funding, a 50% increase in cost-shared initiatives. As you know, Growing Forward 2 is very robust in terms of its focus on science and innovation to make our agricultural sector more competitive.

I'm really impressed by the number you gave regarding the Canadian dairy industry and what the average cow produces. If I remember, it was 3,400 litres and now it's at 8,600 litres. I can only assume that science and innovation played a role in that.

I was talking with some farmers just the other week, and we were talking about export of Canadian technology. They were saying it wouldn't be unheard of for the average production in a herd in another country, depending on the conditions, to be 2,500 litres, which is even below where we were many moons ago. This is why they're so interested in Canadian genetics and Canadian dairy products—not products in terms of, you know what I'm talking about, cows themselves.

Can you inform the committee about some of the initiatives that have led to such tremendous milk production increases by our dairy cows over time?

3:50 p.m.

Vice-President, Dairy Farmers of Canada

Bill Emmott

I think one of the outstanding things we've used in the last number of years is genomics. Instead of having to wait for the standard five years to see if an animal actually produces what her genetic potential is, through genomics we can actually scrape a few cells off an embryo and know what the potential might be coming up. Through research we've been able to verify that those numbers are exact and correct. So you move the generation along very quickly and that has helped tremendously.

Other than that, frozen semen—selective parenthood, as I like to call it on our farm—has tremendously helped, because we only use the very best bulls and we only keep the very best dams, so that moves things along quite quickly. We don't keep just a cleanup bull in the barnyard anymore. We know what everything is and we keep the records. All those things are vitally important to us.

3:50 p.m.

Conservative

Pierre Lemieux Conservative Glengarry—Prescott—Russell, ON

You mentioned that we're actually exporting this now; this is actually a viable business opportunity to export these genetics.

3:50 p.m.

Vice-President, Dairy Farmers of Canada

Bill Emmott

Yes.

You're going to hear from someone from Semex, one of our exporters, in the next session. We export semen and embryos all over the world, because there are verifiable records, and people can rest assured that they're going to get what we've said they're going to get.

3:50 p.m.

Conservative

Pierre Lemieux Conservative Glengarry—Prescott—Russell, ON

If it has been so successful, is research continuing in these areas of milk production and genetic strains?

3:50 p.m.

Vice-President, Dairy Farmers of Canada

Bill Emmott

Absolutely, and 8,400 litres sounds like a lot of milk, but my herd now does 11,000, and there are many herds that do much more than that. When you do the research on the feed you're preparing for them, I like to say that I have a nutritionist who prepares the rations for my cows and I depend on my wife to feed me.

3:50 p.m.

Voices

Oh, oh!