Thank you.
Good morning. On behalf of Alberta Barley, I'd like to thank you for inviting me here to discuss the Canada-European Union trade agreement. As a farmer from Acme, Alberta, I'm here today to tell you what this agreement means for me and the future of my farm.
My family has been farming the same land for over 100 years. I started actively buying my own land over 25 years ago. I've supported myself by work in a variety of jobs in order to be able to farm for a living. As a farmer, I grow barley, wheat, and canola, and I raise Angus cattle.
The reason I'm here today is that I'm very involved in the industry and am currently serving as chairman of the Alberta Barley Commission. Alberta Barley strongly supports increased free trade and the removal of trade barriers in order to expand opportunities in existing barley markets and emerging markets. This work is done largely through our involvement in the Barley Council of Canada, the Canadian Agri-Food Trade Alliance, and the Grain Growers of Canada.
Here with me today is Alberta Barley's government relations and policy manager, Erin Gowriluk. We are both pleased to have the opportunity to share our comments with you as they relate to your committee's report on the comprehensive economic and trade agreement between Canada and the European Union.
Let me start by telling you a bit about what free trade agreements like this one mean for Canadian farmers like me. First, the economic benefits of guaranteed trade with the EU mean that the future of farming in Canada just got brighter. Second, the potential for developing new and value-added markets means that small and medium-sized businesses in Canada can grow and prosper if they're able to break into the European market.
This agreement could be a game-changer for Canada's rural communities if we're able to build the right relationships. This means there's the potential for me to make more money on my farm, which at the end of the day is what needs to happen in order for Canadian farmers to stay in business. Speaking specifically for barley, the potential for the value-added barley production through beer and beef means solid profits for barley farmers. It also means that our excellent products have preferential access to one of the world's most well-heeled customers.
Canada produces eight million tonnes of barley every year, including malt and feed varieties, and it is the fourth-largest producer of barley in the world after Germany, France, and Russia. Canada's main barley-producing provinces are Saskatchewan, Alberta, and, to a lesser extent, Manitoba and British Columbia. However, we grow barley from coast to coast, and it's one of the reasons why Canada is known for excellent beef and premium malt. Barley has a variety of uses, including livestock feed, beer and whisky production, and as an ingredient in the food processing sector.
International trade agreements are integral to the profitability and sustainability of the Canadian agriculture sector. ln 2012 Canada exported more than 1.4 million tonnes of barley. Barley growers like me believe that CETA will enable us to increase our barley exports by opening new markets, which will strengthen the profitability and sustainability of the entire barley value chain.
With over 500 million consumers in the EU, we estimate that under CETA Canadian agrifood exports could increase by $1.5 billion. This amount includes $100 million in grain and oilseed products.
ln addition to these direct benefits, we support the findings outlined in the committee's report that CETA, by providing opportunities for market expansion for Canada's meat industry, will benefit the feed barley industry. With over 80% of the barley produced in Canada going into feed, the barley industry depends on the success of the livestock industry. New market opportunities for Canada's meat industry mean new opportunities for Canada's barley industry.
Alberta Barley supports CETA and other trade opportunities for increased market access, and we encourage the federal government to continue working towards the completion and the implementation of these important agreements. We commend the federal government for their ambitious trade agenda, with both South Korea and the European Union opening up the world to Canadian agriculture exports.
However, I would be remiss if I did not take this opportunity to address one of Canada's greatest challenges when it comes to fulfilling our commitments to international buyers: our transportation system. Unfortunately, shipping and logistical issues are holding us back from maximizing our potential as an exporting nation. We hear about this issue from our international customers and colleagues. We look to the government to ensure Canada's transportation system is able to keep up with our ambitious trade agenda.
Thank you very much.
My colleague Erin will also look forward to speaking.