Agriculture Committee on Nov. 24th, 2016

[Francis Drouin, Liberal, Glengarry—Prescott—Russell, ON]

Okay. You mentioned that 5% of the department's budget is allocated—

[Jacques Lefebvre]

To innovation.

[Francis Drouin, Liberal, Glengarry—Prescott—Russell, ON]

—to processors. I know associations are wondering whether they would be better served by another department. You're still thinking about the matter and you have doubts. Why?

[Jacques Lefebvre]

A number of considerations must be reviewed. If the responsibility for the dairy processing industry were transferred to another department, the change would be significant. There are all sorts of considerations involved, such as focus. The study you're currently conducting shows us that food processing, including dairy processing, is becoming an increasingly important part of the government's program. This is reassuring for us. However, an exercise must be carried out. I know that other groups are advocating for a change of department. We're still thinking about whose authority we should fall under and about the most effective way to help the industry do what it does best. This includes bringing products to the market, creating employment and generating investments in Canada.

[Francis Drouin, Liberal, Glengarry—Prescott—Russell, ON]

I love your idea of a one-stop shop. I think it's a very good idea. We must see how we can work with the provinces on implementing this one-stop shop. I know this is done often in entrepreneurship in Canada, with NSERC's research and development service.

However, are your members informed of what the provinces are doing? We often talk about added value in processing. I know that, in Ontario, a plan to help processors invest in equipment was announced. Maybe the dairy sector could be included in such a plan. Are discussions being held with the provinces as well?

[Jacques Lefebvre]

Yes, Mr. Drouin. I can tell you that our companies look at all the available programs, both federal and provincial, in order to invest in our facilities. For example, the reverse osmosis system may cost tens of millions of dollars. We want to be more efficient, because it's necessary in Canada's dairy processing industry. In our system, we must be very efficient, and we use all the programs available. However, given the time spent looking at the programs, the criteria that must be met, the forms and the time frames, we think there must be a way to establish a one-stop shop to make the investment easier. We want to invest, and we're asking the governments for help so that we can invest and create employment in Canada.

[Francis Drouin, Liberal, Glengarry—Prescott—Russell, ON]

Thank you, Mr. Lefebvre, and congratulations. You've been in your position for almost one year.

[Jacques Lefebvre]

Thank you.

[The Chair, Liberal, Pat Finnigan]

Mr. Longfield, you have the floor for six minutes.

[Lloyd Longfield, Liberal, Guelph, ON]

Mr. Chair, and I'll be splitting my time with Mr. Peschisolido, if that's okay.

[The Chair, Liberal, Pat Finnigan]

Sure.

[Lloyd Longfield, Liberal, Guelph, ON]

I have a question for Mr. Kuhl around the emissions-trading network that Canada is now becoming part of, looking at putting a price on pollution, but also at revenue opportunities. We look at the EU emission-trading scheme, California allowances, and the New Zealand and Australian units.

Last night at supper, we had a great conversation with the greenhouse industry, talking about how greenhouse businesses capture CO2 and how the plants use CO2, and how they capture heat and they use the heat for their units. Part of the Calgary statement has to do with promoting environmental sustainability and initiatives on climate change, and the government incentivizing programs around that.

Could you briefly comment on where your group is in terms of embracing climate change initiatives?

[Keith Kuhl]

I think the greenhouse sector, which is one of the largest sectors under the horticultural banner, is a primary opportunity for us. As you're aware, the greenhouse industry has to have access to carbon because the plants within the greenhouses create so much oxygen, and eventually the greenhouses get overoxidized, and so the producers are injecting carbon into the greenhouses. We have to find ways to capture the carbon elsewhere and bring it to the greenhouses so the greenhouse producers no longer have to produce their own carbon. This is a fantastic opportunity for the government.

[Lloyd Longfield, Liberal, Guelph, ON]

Yes, I think so as well. Thank you for putting that on the table. I look forward to working with you on that opportunity.

Mr. Peschisolido.

[Joe Peschisolido, Liberal, Steveston—Richmond East, BC]

Lloyd, thanks.

Mr. Lefebvre, you mentioned the regional issue.

The dairy industry in Quebec is different from the dairy industry in Ontario and British Columbia. As you know, the dairy industry in British Columbia is concentrated in the valley near Vancouver, in Chilliwack and Abbotsford.

What can we do to develop this industry?

[Jacques Lefebvre]

Thank you for your question, Mr. Peschisolido.

I assume you're talking specifically about dairy processors.

[Joe Peschisolido, Liberal, Steveston—Richmond East, BC]

Yes, exactly.

[Jacques Lefebvre]

As Mr. Breton mentioned earlier, in the dairy processing sector, a number of the processors are located near the producers. The greater the number of producers, the stronger the presence of the processing industry. Obviously, business costs are involved. There is a desire to be close to the initial product.

I'll answer your question using this simple equation.

In terms of future possibilities, I can tell you that one of the most innovative companies in our association is Vitalus, which operates in the dairy ingredients sector. Vitalus is located in your province.

This is also probably one of the future possibilities. When we talk about innovation and investment, we must take into account traditional capacity, meaning dairy processing for the food industry. However, as I mentioned earlier, this is true for other sectors as well. That's why innovation is important. Innovation is related to investment capacity, which will be further expanded.

Regarding your point, the industry is in fact concentrated, and it's also concentrated for the producers in Quebec and Ontario.

[Joe Peschisolido, Liberal, Steveston—Richmond East, BC]

How can we use the University of British Columbia to help encourage innovation in the industry?

[Jacques Lefebvre]

In think the universities and colleges play a very important role in research and development. We must take this opportunity not only to encourage them to invest in innovation, but also to make it accessible for marketing. When the research is made more accessible to industries, the investments follow.

[Joe Peschisolido, Liberal, Steveston—Richmond East, BC]

Keith, I want to follow up on your point about labour. As you know, Ocean Spray is based in my riding of Steveston–Richmond East. I visited there, put on overalls, and went into the water. It was fascinating. These three wonderful chaps from Mexico were working there. They've been coming back here for over 15 years. They've had to go in and out because of the four-in, four-out rule.

One point that was made by the farmers and the Ocean Spray executives was that they wanted to keep these folks long term, but the issue for them was that they couldn't go over to work on the berry farms, or they couldn't go and work in the fish plants, for which they actually had skills.

What changes can we make to this program to look at these issues?

[Keith Kuhl]

I think we need to have open consultation and dialogue on this one. Most times when the temporary foreign workers come in, they want to work a maximum number of hours. They're generally happy to work 12- to 16-hour days, because it improves their lifestyle back home so incredibly—

[The Chair, Liberal, Pat Finnigan]

Thank you, Mr. Kuhl. I have to stop you there, because some members have to leave.

Thank you to the panel for appearing today. This has been very informative for us in terms of our recommendations on the strategy.

Before we leave, everyone, I just want to confirm that the letter we propose to send to the minister is okay with everyone.

Is there agreement? Are we good?

[Francis Drouin, Liberal, Glengarry—Prescott—Russell, ON]

I'm good. It's just that on the local veterinarians issue, I'm for this, but if there's no procurement vehicle...because these people have to get paid...that would actually delay the process. They are contractors. I just want to make sure that....

I agree with the content of the letter, but I don't want it to cause more delays if we go to local veterinarians.

[The Chair, Liberal, Pat Finnigan]

Yes. I think it's to make sure that the system is—