Yes.
Evidence of meeting #4 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.
Evidence of meeting #4 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.
4:55 p.m.
As an Individual
Okay.
I'm very glad you asked that question, thank you very much, because I think I have an answer to it.
I have been honoured, if you will allow me to say so, with the Order of Canada, which got me an invite to a lunch with the Governor General. At that very fine meal, we had a plateful of artisan cheeses from Quebec that were really, really excellent. We all asked, “Where did you get these cheeses?” Those of us from the west, especially, had never had them before. They told us that they would be happy to e-mail us a list of all the artisan cheese producers in Quebec, but we probably wouldn't be able to get any cheese, because the Governor General's residence can buy their entire stock.
So I'm looking at the artisan cheese industry as the answer to the European trade agreement—that Canada makes Oka cheeses, makes other very good specialized cheeses, makes all these artisanal cheeses—and that we can develop them under Canadian names and Canadian geography and start building up the capacity and the market of those industries.
4:55 p.m.
Conservative
The Chair Conservative Bev Shipley
Thank you very much, Madame Raynault. Your time is up.
I'll go to Mr. Hoback, please, for five minutes.
November 7th, 2013 / 4:55 p.m.
Conservative
Randy Hoback Conservative Prince Albert, SK
Thank you, Chair.
What a great presentation this afternoon, to see both sides of the debate on this trade agreement. You know, I'm a little disappointed; I think there is opportunity, as our witness just testified, if people embrace it, in going into Europe. It might be a little tougher, but there definitely is a lot of opportunity for the dairy sector there.
In terms of the grain sector, though, Franck, you said you came out of France, so you know all about productivity of Canadian farmers, grain farmers in particular, versus European grain farmers. I spent a lot of time in Europe when I was with Flexi-Coil and Case New Holland looking at the productivity difference and how they're trying to embrace Canadian technology in Europe to bring down their cost of production. Even though they had heavy subsidization, when you looked at the net dollars in their pockets, it wasn't a lot better than it was here in Canada at that point in time.
You used the example of $190 a tonne on wheat, and I think you said $114 on oats. I thought it was $119, but we're splitting hairs there. I think you said it was $120 on barley.
You grow about 7,500 acres of cereals. Let's just do the math so that people understand how big this is. Out of your 7,500 acres of cereals, approximately how much of that would be wheat?
4:55 p.m.
Director, Grain Growers of Canada
Wheat would be half of it, so let's say 3,000 acres.
4:55 p.m.
Conservative
Randy Hoback Conservative Prince Albert, SK
So 3,000 acres, and you're in Regina, so one metric tonne per acre would be fairly fair.
4:55 p.m.
Conservative
Randy Hoback Conservative Prince Albert, SK
You grow really good wheat because you're from Saskatchewan. We all know that, right? You would be the best in the world.
4:55 p.m.
Conservative
Randy Hoback Conservative Prince Albert, SK
If you were to ship your full production to Europe right now, the Europeans would collect $190 an acre off your wheat. Take 3,000, multiply it by $190—if Barry Wilson is still here, I think he has a calculator—and you can see how much tariff was being collected on the backs of Canadian farmers and we are still selling wheat to Europe. We're still competing with the Europeans. We're still selling wheat in the U.K., to Warburtons and places like that. When you look at this now, you must be really excited because.... I know you're not going to get the $190 a tonne, but once they realize how good our wheat is and now they're going to have more access to it, how do you think it's going to impact your operation?
4:55 p.m.
Director, Grain Growers of Canada
There's no doubt that more access to market is making me more competitive. In Canada we always figure out better ways to produce more efficiently. In the future, it's a huge opportunity. There's no doubt about that.
5 p.m.
Conservative
Randy Hoback Conservative Prince Albert, SK
Pierre just did the math, and I think he said about a half million dollars.
5 p.m.
Conservative
Randy Hoback Conservative Prince Albert, SK
That's on your farm alone, and you're just one of many farmers that the Europeans were collecting—
5 p.m.
Director, Grain Growers of Canada
It's actually hard to believe. I'm getting so excited. I hope my equipment dealer doesn't realize this. But that will be good for him, too.
5 p.m.
Conservative
Randy Hoback Conservative Prince Albert, SK
One thing you mentioned in your presentation is about the beef sector. Again, now we're going to have processed beef going into Europe. We look at that and realize we're going to have more beef cattle, which means they're going to have to eat more barley. Again, it's another benefit back to the grain producer, and not only that, but in the beef sector those guys are going to actually have more capacity here in Canada because they're going to basically package it up and ship it in boxes to Europe. All of a sudden, instead of relying on the U.S. and the issues we've had with COOL and the problems down there, we've got an alternative now. Again, when you start bouncing that back into your operation on the grain side, what does that mean?
5 p.m.
Director, Grain Growers of Canada
It gives me more options, because even though we grow some of the best wheat in the world, sometimes the weather doesn't cooperate and that means my production becomes feed. Now I've got an opportunity to choose between selling feed or selling premium wheat for an export market. I have two markets that are actually opening up. It's excellent.
A lot of grain producers are also cattle ranchers and cattle feeders. This gives them the opportunity to balance their income on the farm if one of the sectors doesn't....
5 p.m.
Conservative
Randy Hoback Conservative Prince Albert, SK
Exactly.
On the canola oil side of this, again, close to your place we've built new crush plants. We've built two new ones in Yorkton. We've got one up at Nipawin, in my riding. Of course, the Europeans are excited about oil for the biodiesel sector. Again, it's another option. It's just going to be that much better.
Where's the negative here?
5 p.m.
Conservative
Randy Hoback Conservative Prince Albert, SK
Ms. Kunin, you talked about productivity gains and how we can look for productivity gains. That's one thing we've seen in the grain sector: because we had low margins, we had to force productivity. We went into zero tillage and we went to a situation where we had farmers farming 800 acres. Now, Franck, you're farming 7,500 acres with probably one or two hired men, and that's about it. It's very efficient.
I go back to the farms I worked on in Europe—in France, the U.K., and Germany. There would be maybe 400 hectares or 500 hectares. They'd be using machinery that would be three or four metres—
5 p.m.
Conservative
5 p.m.
Conservative
Randy Hoback Conservative Prince Albert, SK
Competition brings about productivity. Do you think competition will bring out productivity in the dairy sector, too?
5 p.m.
As an Individual
Yes. I definitely think so. When people discover they have both increased markets—so they want to get a better, more competitive product—and more competition for their home markets, people will find ways to be a lot more productive and a lot more effective. I used the New Zealand example, but there are many other examples I could give.
It will be a shock to the system, but they will be able to do it.
