Agriculture Committee on Nov. 26th, 2013

[Francine Raynault, NDP, Joliette, QC]

This is important information, I feel. People really do not know what is involved. If they do not have the information, they may well say that, since both products are natural, they do not see why they are paying more for the organic product. If that is the case, they will buy one and forgo the other, the organic one.

What will the impact of the CETA be on the maple syrup industry?

Are we going to export more of it to Europe? Will the demand increase? Are we going to be able to meet it?

[Martin Plante]

Let me answer in stages. There will be a positive impact, but there is a time factor, a momentum factor. An additional market will be created. Maple syrup is in competition with all the other sugar products, including other sugars that are not as good for the health. The idea is to make it more affordable for European consumers. In an sluggish economy, 8% is a lot. Canadians have to be the first to offer that 8% to European consumers so that we can benefit from the promotion.

Since we were talking about organic products, I have to point out that trade fairs all over the world are really pushing organic products and promoting them. It is important for consumers to grasp what they are really about.

The Americans did not come to our trade shows before. We saw them in the United States supplying a national market. Now we see them at trade fairs in Europe, and even in Montreal. They actually came to stick it to us a little on our own turf.

When all is said and done, I can tell you that Quebec producers make a quality product and they do so with pride. We have a good system. What slows us down is money. We have to adapt to these circumstances before the Americans do.

[The Chair, Conservative, Bev Shipley]

Thank you very much, Madam Raynault.

I'll now move to Mr. Preston for five minutes.

[Joe Preston, Conservative, Elgin—Middlesex—London, ON]

I'll carry on with that. With this agreement with Europe, with CETA, your 8% tariff on maple syrup will be removed and that for the United States will not. Doesn't that give you an 8% advantage?

[Martin Plante]

Yes, if we sign and finish the agreement before they do. My fear is that they will start after we do but they will finish the final agreement before we do because they might have fewer problems going through an agreement.

[Joe Preston, Conservative, Elgin—Middlesex—London, ON]

I'm certainly not hearing that the U.S. is anywhere that close to an agreement with Europe.

[Martin Plante]

If you're right, that's good news.

[Joe Preston, Conservative, Elgin—Middlesex—London, ON]

I could be corrected but, boy, I don't think that.... It sure sounds as though every other producer group we've been speaking to is happy to be in before the U.S. is, and they feel that's a huge advantage. So use it to your advantage. If 8% growth or 8% profit increase immediately upon the signing of the agreement is there, it sure sounds as though that gives you quite a marketing agreement ahead of the United States.

First of all, congratulations. A large cooperative group like yours is a really positive thing to see happening. Could you tell me how long you've been into cranberries and honey? I know you started as a maple syrup cooperative.

[Martin Plante]

We've been helping the honey producers for the last 40 years but we finally joined with them three years ago. We've been selling cranberries for the last 10 years, but when Europe came with the 17.6% two years ago, it killed us as being an in-between guy.

[Joe Preston, Conservative, Elgin—Middlesex—London, ON]

Who is your competitor in the cranberry business?

[Martin Plante]

There are a whole bunch of them in Quebec, including Ocean Spray.

[Joe Preston, Conservative, Elgin—Middlesex—London, ON]

I understand your own competitors, but what about Europe? Do they grow cranberries in Europe?

[Martin Plante]

No, the competitors are the other U.S. and Canadian cranberry companies.

[Joe Preston, Conservative, Elgin—Middlesex—London, ON]

So if I sign an agreement, 17.6% tariff comes off. For the United States it doesn't.

[Martin Plante]

That's exactly what we're looking for. They're smart. They put on this 17% only a year and half or two years ago, just before the agreement.

[Joe Preston, Conservative, Elgin—Middlesex—London, ON]

I was mentioning the cooperatives. Of course, tonight is the night of cooperatives. There's a cooperative reception at the Parliamentary Pub just following our vote. I just wanted to point that out as a little bit of marketing, Mr. Chair. I know you'll repeat it again before we finish.

[A voice]

Shameless.

[Joe Preston, Conservative, Elgin—Middlesex—London, ON]

It's shameless. I'll do it. That'll work.

There's one more thing. You talked about the appellation—the name—“ maple syrup”. When others were here, I talked about the number of geographic indicators and name protections in the agreement from the European side and I asked what Canada asked for. I was told we didn't ask for any. You're suggesting to me we did ask for maple syrup or the word “maple” as an appellation or a geographic indicator.

[Martin Plante]

Every single time I have an important meeting like this, I talk about that, and people say that it's not easy. Nothing is easy. When it's easy, it's already done. But I think we need to protect that name because there are a lot of maple—

[Joe Preston, Conservative, Elgin—Middlesex—London, ON]

There are a lot of maple products.

[Martin Plante]

—products packed in Europe and if you taste them, you will understand what I mean.

[Joe Preston, Conservative, Elgin—Middlesex—London, ON]

I understand. I'm not sure what the next step towards that is. You mentioned something else today about the health benefits of maple syrup.

This is a fantastic committee, Chair.

Last week, I heard about the health benefits of barley and went home and shared that with my wife. I'll tell you, I'll continue to share the health benefits of maple syrup.

Who are we going to see next week? I'm going to be so healthy when I'm done here.

Without kidding, but as Madam Raynault said, I'm a bit shocked by the need for there to be an organic maple syrup versus.... I always thought of maple syrup as being as natural as it possibly could be simply given the way we make it. I understand. You're getting that large a premium in price for organic versus the good old-fashioned maple syrup. What's the difference in price between the two?

[Serge Beaulieu]

There is a slight difference in price. It is 15¢ more per pound on a base price of $3. That is not a huge amount. It just serves to compensate producers for the extra work they have to do to produce syrup of that kind. I mentioned that before. More work is needed in the production because, in season, our equipment must be washed. It has to be scrubbed and only water can be used for the washing. That is why there is a premium on organic syrup. The orchards are also managed to ensure sustainability over a longer time.

[The Chair, Conservative, Bev Shipley]

Thank you very much.

You had a great time.

Mr. Eyking, for five minutes, please.

[Mark Eyking, Liberal, Sydney—Victoria, NS]

Thank you, Mr. Chair.

Thanks for coming today. You've stressed it many, many times that we have to fast-track this deal and get it done. With any deal there are winners and losers. Being the largest producer of maple syrup, Quebec is also the largest producer of dairy products, and they're taking a hit. I think to get this deal done we have to make sure that they're taken care of also, the cheese producers. The deal's not done until you see your product and the tariff has dropped off. Then you know the deal is done. It has to be binding for the provinces.

I think your message to the government is, get on with it, get the provinces binding, and get it to Parliament here, and make sure the people are taken care of who are going to be hit.

I have a couple of questions.

Do countries in northern Europe and Russia have maple trees, and do they have maple syrup?