Thank you very much, Mr. Chair. I'm pleased to be back.
Bonjour tout le monde.
I want to take this opportunity to thank the committee for its outstanding work to support the agricultural sector. I know you've been working hard recently on Canada's next agricultural policy framework, and I've been hearing from many agricultural groups and Canadians. I want to congratulate you for your dedication to this important topic for our agricultural sector, and I look forward to reading your report when it's finished.
I also appreciate your concern on the bovine TB situation in Alberta and Saskatchewan. It's a very difficult situation for our producers. As the investigation proceeds, we are doing everything we can to minimize disruptions to producer businesses while ensuring the protection of human and animal health.
We are exploring all options to producers whose farms are under quarantine. We are working hard with Alberta to implement an AgriRecovery initiative as quickly as possible to cover extra costs faced by producers experiencing this income decline. This would help provide financial assistance for extraordinary costs related to feed and water infrastructure, feed for the animals, transportation, as well as interest costs on loans due to the circumstances. Producers can also access immediate help to cover the costs they are facing under the advance payments program.
I have instructed my department and the CFIA to ensure that all those affected have the latest information as it becomes available. We have approved having a feedlot set up for quarantined calves and are working with the industry on this. Once they identify a suitable location, we can begin the work quickly.
I want to assure the committee and all those affected by this terrible situation that we will spare no efforts in helping get our world-class cattle producers back on their feet again. Being a farmer, I understand the difficulty of this situation and the pressures these ranchers are facing.
Moving on to today's topic of the supplementary estimates, our government is pleased to work with you to advance Canada's agriculture and agrifood industry. Our commitment to the sector is shown in the supplementary estimates you have before you. The estimates have increased by over $23 million, to a total of $2.34 billion.
This will support joint initiatives under Growing Forward 2 with the provinces and territories. These are targeted at competitiveness, market development, innovation, adaptability, and industry capacity; the agricultural youth green jobs initiative; and investments under the AgriMarketing program to support our free trade agreements and negotiations, and to work with industry to open doors in global markets.
Today I'm also pleased to update the committee on our government's work for the sector since our last meeting, specifically our work on three important priorities—trade, innovation, and the next policy framework.
As you know, trade is vital to the success of the sector. Canada exports about half of the value of its entire agricultural food production. Canada is a top-five agricultural food exporter, with exports hitting new records every year, so it was tremendous news when the Prime Minister and the president of the EU signed CETA.
CETA will eliminate tariffs on virtually all Canadian agrifood exports to one of the world's largest markets for food. CETA could boost Canada's agriculture and food exports to the European Union by $1.5 billion. That's good for our farm businesses, good for jobs, and good for economic growth across the country. Our government has introduced legislation to implement this landmark agreement under Bill C-30. At the same time, we're supporting our supply management by helping Canada's dairy industry adjust to increased access to European cheeses under CETA. We have consulted closely with the sector on the best way forward.
Three weeks ago, we announced a federal investment of $350 million to help dairy producers and processors adapt to CETA through investments in new equipment and technologies. Our goal is to help Canada's dairy sector grow and thrive so that it can take advantage of new market opportunities and address domestic and international pressures. We are working with the Canadian dairy sector to make it more competitive and to make sure that Canada's supply management remains strong for generations.
In the coming weeks, we will consult with the dairy sector to seek input on these programs. Both programs will be in place when CETA comes into force. We have also moved to support supply management initiatives such as the duties relief program and spent fowl.
Canada's Border Services Agency has sanctioned five users under the duties relief program who were improperly selling supply management commodities in the Canadian market without reporting these sales and without paying the required duties. We will sit down with industry to look at potential changes to the duties relief program and the import for re-export program. We will look at specific options regarding certification requirements for imports of spent fowl while ensuring that any such requirement would be fully consistent with Canada's international trade obligations. At the same time, officials are addressing the feasibility of a DNA test to screen imports of spent fowl at the border.
Mr. Chair, this is another example of our government's support for the supply management program. Along with Europe, another key market for Canadian farmers and food processors is China. I am just back from a major trade mission to China. We showcased Canada's world-class food, beverages, and seafood— from blueberries to beef, canola, lobster, and maple syrup—with a focus on the rapidly growing e-commerce market.
I was pleased to host events and attend trade shows to promote our products. Industry representatives have reported that these events have led to some $37 million in on-site sales and $230 million in anticipated sales over the next year.
Canada is China's second-largest customer for agriculture and agrifood with a middle class growing by the population of Canada every year.
We have set a goal of doubling the trade between the two countries by 2025. We have also agreed to expand access to Canadian beef to China as well as to continue canola exports, which average $2 billion a year.
Colleagues, when we talk trade, we must talk transportation, as they go together. You can't have one without the other. That is why our government would introduce legislation to strengthen Canada's rail transportation system, address key industry concerns such as reciprocal penalties, better define adequate and suitable service in the Canada Transportation Act, and improve access and timelines for the Canadian Transportation Agency decisions. In early 2017 we will also address the future of extended interswitching limits and the maximum revenue entitlement. Farmers have certainly indicated their appreciation for the steps we are taking. Our government will continue our work to improve the grain transportation system in this country.
Innovation is also critical to ensuring the sector can continue to take advantage of global market opportunities and keep the industry on the cutting edge. As you know, innovation is very important to our government and to me. Research and development lies at the heart of Canada's global agricultural success. Our ongoing private and public sector investments in research will be critical to Canada's ability to help feed the world and keep Canadian agriculture on the cutting edge.
For example, last month in Vineland, Ontario, I announced a federal investment of up to $920,000. This initiative will help Vineland Research and Innovation Centre develop tomato and apple varieties that are resistant to disease. That will help both the environment and the farmer's bottom line while boosting productivity for domestic and export sales.
We continue to strengthen the Canadian agricultural sector through key investments in discovery science and innovation. Our government is also investing in programs to help farmers take action on the environment, including a $27-million investment in the agricultural greenhouse gases program.
Mr. Chair, your committee is continuing its work on the next agricultural framework. Promising opportunities lie ahead for the Canadian agriculture and food industry.
A rising population and rising incomes will continue to drive demand for Canada's world-class food. We continue to hold extensive consultations with the industry, provinces, and territories. I know you are doing so as well. We certainly look forward to the result and looking at your study.
I look forward to working with you and all stakeholders to help Canadian farmers and food processors continue to keep Canadian agriculture strong and growing.
Mr. Chair, I thank you very much. Merci.
