Thank you, Mr. Chair.
My name is Leanne Fischbuch. I am the executive director of the Alberta Pulse Growers. Farmers elected to our board represent over 6,000 producers of pulse crops in Alberta. These crops include field pea, dry bean, lentil, chickpea, soybean and faba bean.
Our members support our organization through a refundable levy on the cash sale of pulses. The funds are invested in research, market development, extension and communications to increase the profitability of pulse crops for producers, and to increase the knowledge and acceptance of pulse crops by the consumer.
I am pleased to provide comments to you today on the topic of research and development to encourage Canadian exports. In the interest of time, I'd like to focus on a few of the topics, namely trade, policies and programs, and regulatory frameworks.
Alberta has the second largest number of acres and amount of production of pulse crops in Canada. Within the province, field pea is the predominant crop, followed by lentil, faba bean, dry bean, chickpea and soybean, totalling approximately 2.1 million metric tons of production worth $604 million to Alberta producers in the 2017-18 crop year. In 2016, Alberta exported more yellow peas than any other jurisdiction in the world.
Canada does not consume its pulse production. Canada has been the largest exporter of pulses, at 41% of the marketplace for years. This has been a good news story for the Canadian industry, with growers growing more pulse crops and increasing export opportunities.
Currently, however, the industry is experiencing market access challenges with India, which is traditionally our largest importer. Prior to the slowdown in Canada's largest market, in 2017 the Canadian pulse trade had delivered over 7.1 million metric tons of pulses to over 130 markets across the globe. We recognize that other countries are taking a run at our numbers, and we need to work to make sure we can continue to sustainably grow our production and take it to market.
APG's goal is to have pulses included once every four years in each farmer's rotation in Alberta to obtain a three-million-acre production. In addition, we are working with our national organization Pulse Canada to diversify our market opportunities, which includes broadening opportunities for trade of primary products and supporting inclusion of pulse ingredients in pet and human foods, aquaculture and feed in our 25 by 2025 strategy so that growers have markets for their production.
APG supports the efforts to act on “Unleashing the Growth Potential of Key Sectors”—the Barton report—to increase Canadian agricultural exports from fifth place to second place. We see the need to diversify and expand opportunities with our pulse crops.
Discovery, development and marketing of new products take investment. As a grower organization, we use our funds to address questions and capitalize on bringing solutions to our growers. We cannot do this alone. There is a significant need to collaborate with others who are bringing resources such as funding and people to the table.
APG has participated via Pulse Canada in accessing AgriMarketing program funding, and more recently AgriScience cluster funding. APG committed to providing nearly $2.3 million in matching to the $11.1 million in pulse science cluster support from the federal government, which allows our industry to tackle priority research that growers would not be able to fund on their own.
The recent announcement of the success of the Protein Industries Canada supercluster application is also encouraging, and APG is waiting to learn how that funding will be implemented and how we can match our objectives. It's critical to have programs pairing industry investment with public investment and allowing industry to address issues that form a foundation to build upon to meet global and domestic opportunities.
While research addresses problems that are holding the industry back, there are many other areas that impact the ability to grow pulses and reach out to capture export opportunities. There are regulatory challenges that can reduce the potential success of the industry to reach both export and domestic value-added opportunities. These include the following.
First, with respect to transportation, Canada's reputation as a leader in global exports is easily compromised when product is unable to move to market. Systemic rail transportation failure has eroded Canada's brand and trust from international customers of our agricultural commodities. If export opportunities are to be part of the path forward for growth, then transportation needs to be a priority.
Second, the Pest Management Regulatory Agency is challenged with resource shortcomings, such as people and funding, and needs to have its processes reviewed. APG recognizes the importance of the PMRA and its role; however, the agency also has the potential to limit expansion of the pulse industry and significantly affect its future.
Third, it should be a priority for the Canadian Food Inspection Agency to be a global leader in exports, recognition of scientific standards and global harmonization. The codex for maximum residue limits or continued efforts on low-level presence detection can be a challenge with the potential to lead to market access issues. If global export is a key opportunity for expansion, APG would support the CFIA's prioritizing work in this area.
Finally, environment and climate change legislation has an impact on growth and opportunity for the agriculture sector. APG recognizes that farmers who incorporate pulses have a positive influence on the environment, such as reducing the use of synthetic nitrogen and reducing greenhouse gas emissions. Even Agriculture and Agri-food Canada supports pulse crops being added to rotation as part of a beneficial practice to increase carbon in the soil. Farmers are stewards of the land and want to do the best possible management to keep it healthy and viable for future generations. Carbon taxes in a global environment put Canadian exports in an uncompetitive position against others who can supply product at a lower cost due to less regulation. A regulatory impact analysis on the agriculture sector needs to be investigated prior to adopting further legislation.
Canada's agriculture future continues to be export-focused. For the pulse industry, our small national population will never be able to eat its way through Canada's production of pulses. That said, Canadians do need to increase their consumption of this healthy and nutritious product for the many benefits pulses provide. However, export will continue to be the primary objective, with domestic value-added production secondary, in order to consume the tonnage that is being produced.
Alberta's pulse farmers see value in the research supporting innovation and opportunities that will ensure they are able to maximize yield, deal with agronomic issues and produce a consumable product while continuing to keep the health of their land in the best shape possible for the future and supplying an export-ready product to the global marketplace.
Acceleration in trade, continued investment in research, and reduction of obstacles to growth such as regulatory challenges are all part of the path forward.
Thank you for your time. I welcome questions.