Thank you, Mr. Chairman.
My name is George Gilvesy. I'm the general manager of Ontario Greenhouse Vegetable Growers. With me is Leanne Wilson, who is our science coordinator.
As far as the freezing, that's pretty symbolic of greenhouse growing because we do things in a controlled environment; it's perhaps appropriate that we're on the video screen.
I'll give a little background to the committee about the Ontario greenhouse vegetable sector. It accounts for 63% of the $1.24 billion in farm cash receipts attributed to the Canadian greenhouse vegetable sector. Ontario boasts one of the largest greenhouse vegetable regions in North America, with 2,398 acres of greenhouse tomato, pepper, and cucumber production. These vegetables are also produced on a significant scale in British Columbia, Alberta, Quebec, and the Maritimes. The Ontario greenhouse vegetable sector is also a significant part of the rural economy, accounting for some 10,000 jobs annually.
The Ontario Greenhouse Vegetable Growers, or OGVG as we call it, is headquartered in Leamington, Ontario. it is the grower organization for all tomato, pepper, and cucumber greenhouse farmers in Ontario. Our mandate is to provide market access for producers and ensure the opportunity for economic success.
Mr. Chairman, our sector is one of the fastest growing agriculture sectors in Canada. The scope and growth of the Ontario greenhouse sector is relatively unknown outside of our growing region, as few people understand Ontario's market dominance position across North America. This market dominance extends from eastern Canada, down through the southern United States, principally east of the Mississippi, and is maintained through the months of April to November. There is approximately 70% of our production that is exported to the United States.
Leamington has experienced an increase in gross domestic product of some 10.6%, during the period of 2011 and 2012. Leamington's economic development manager has attributed this growth in jobs and GDP primarily to the 205 acres of growth of the local greenhouse vegetable sector. At close to $1 million per acre, this private investment in high-tech greenhouse production facilities has been a real boost to the economy. The growth of the sector is expected to continue.
The goal of the Ontario greenhouse vegetable sector is to achieve sales of some $1 billion within 10 years. This goal will only be achieved by investing with government and other stakeholders in innovative R and D policies, to drive the production of year-round environmentally sustainable greenhouse produce that is safe, fresh, and at a quality that meets the needs of our growing customer base.
As far as enhancing agricultural sustainability, greenhouse vegetable farming is one of the most sustainable and productive forms of agriculture in Canada. We are able to produce 10 times more food per square metre than field producers because of our nearly year-round production under controlled environment conditions. That helps us to maximize production of high-quality produce. The controlled nature of our production system also allows us to efficiently utilize typical agricultural inputs, for example, water and nutrients, as well as other inputs which aren't as easily used in field production, for example, bumble bees for pollination, CO2 to increase photosynthesis, and good bugs to do the job of pesticides. Overall, greenhouse vegetable production allows Canada to maximize the production of healthy food while minimizing the strain on Canada's finite agricultural resources.
With regard to investment in innovation, that is critical to our sector's global competitiveness. Our farmers face stiff competition from other high-tech greenhouse farmers, as well as low-cost producers. OGVG and our members are therefore committed to investing in innovative research and development initiatives in order to enhance our global competitiveness.
Government plays a critical role in innovation by supporting R and D projects that are applicable to the agriculture sector. OGVG is very grateful for the R and D support that the government has provided the greenhouse vegetable sector in the past. In particular, we are appreciative of the $2.7 million in support through the agri-innovation program, for our project, Advancing the Ontario Greenhouse Vegetable Sector: Global Competitiveness Through Innovation. During the past five years a total of $8.3 million was invested in projects to benefit Ontario greenhouse vegetable farmers.
On challenges and barriers to innovation, given the nature of our production system, our sector relies heavily on the use of experimental greenhouse facilities to conduct our innovative research, in particular the Agriculture and Agri-Food Canada Greenhouse and Processing Crops Research Centre in Harrow. We greatly value the accessibility to this facility and the world-class researchers within, and strongly request that the federal government ensure there is continued support and investment in greenhouse research facilities and researchers.
Access to research funding is a challenge. It becomes increasingly challenging to maintain a research program for our sector when government programs only allow for projects of four to five years, and transition between programs, for example, Growing Forward 1 and 2, often results in a significant gap in funding and a loss of research capacity. The flexibility within these programs is also very limited and can often stifle innovation. We strongly encourage the government to engage with stakeholders early on in the planning of Growing Forward 3, for example, so that constructive feedback can be provided to ensure a smooth transition, and an effective and transparent program can be initiated.
On another topic, improving food security, one of the most important components of food security is providing Canadians with reliable, safe food. Ontario greenhouse vegetable farmers are committed to food safety, with each farm being required to undergo an annual third party food safety audit. Many of our growers have also implemented advanced traceability systems that allow produce to be tracked from the consumer back to the exact section of the greenhouse where the produce was harvested. Through our sector’s food safety and traceability programs, we are well prepared for any potential food safety incidents.
In September 2012 the Canadian Horticultural Council’s greenhouse committee wrote letters to the Minister of Agriculture and Agri-Food and the Minister of Health to convey our concerns regarding the government’s level of preparedness in the event of a food-borne illness incident. These letters were written in response to the highly publicized and devastating 2011 E. coli outbreak in Germany from European sprouts. This event taught us many things, including the openness of the global food system, for example: a Europe with no borders; the importance of industry and government being prepared with spokespeople and a crisis management plan; and most important, the value of a comprehensive traceability system.
Canada is recognized globally as having a world-class food safety system, and it is this reputation that needs to be maintained through the development and implementation of an innovative crisis management plan that takes the needs of the government, consumers, and the agricultural sector into account. We encourage our government to review Canada’s planning so as to minimize the negative impact of a situation similar to what Europe experienced.
As far as new markets and market access are concerned, greenhouse vegetable farmers operate in a fiercely—