Evidence of meeting #34 for Agriculture and Agri-Food in the 42nd Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was farmers.

A video is available from Parliament.

On the agenda

MPs speaking

Also speaking

Harpreet Kochhar  Chief Veterinary Officer for Canada and Associate Vice-President, Operations Branch, Canadian Food Inspection Agency
Pierre Corriveau  Assistant Deputy Minister, Corporate Management Branch, Department of Agriculture and Agri-Food

8:45 a.m.

Liberal

The Chair Liberal Pat Finnigan

Good morning, everyone.

This morning, pursuant to Standing Order 108(2), we are studying supplementary estimates (B) 2016-17: votes 1b, 5b, and 10b under the Department of Agriculture and Agri-Food.

We have with us today the Honourable Lawrence MacAulay, Minister of Agriculture and Agri-Food.

Welcome, Minister MacAulay.

We also have as a witness for the Canadian Food Inspection Agency, Mr. Harpreet Kochhar. He is the chief veterinary officer for Canada, and associate vice-president of the operations branch

Welcome, Mr. Kochhar.

With the Department of Agriculture and Agri-Food, we have Mr. Greg Meredith, assistant deputy minister of agriculture, strategic policy branch.

Welcome, Mr. Meredith.

We have Monsieur Pierre Corriveau, assistant deputy minister of the corporate management branch.

Mr. Corriveau, welcome to the committee.

We also have Mr. Rosser Lloyd, director general, business risk management programs directorate, programs branch.

Welcome here today.

Minister MacAulay, we will leave it to you to start. You have the floor.

8:45 a.m.

Cardigan P.E.I.

Liberal

Lawrence MacAulay LiberalMinister of Agriculture and Agri-Food

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.

8:55 a.m.

Liberal

The Chair Liberal Pat Finnigan

Thank you very much, Minister MacAulay, for updating us on the department's activities and on local and international issues and business.

We'll start the question round with Mr. Anderson, for six minutes.

8:55 a.m.

Conservative

David Anderson Conservative Cypress Hills—Grasslands, SK

Thank you, Mr. Chair.

I want to thank the witnesses for being here.

Thanks, Minister, for being here. We like you so much when you come here that we'd like you to stay even longer. I'm sure we'll be inviting you back again.

You talked a little bit earlier about feed assistance and the use of the AgriRecovery program. What's the timeline on the feed assistance program? When can ranchers expect to see some of their additional costs covered by that program?

9 a.m.

Liberal

Lawrence MacAulay Liberal Cardigan, PE

Thank you very much, Mr. Anderson. I appreciate your question.

As you know, it's a great concern for the government. I have been working with the Province of Alberta. Within a few days, hopefully.... It's hard to put a timeline on it, but we understand the importance of this to farmers. Being a farmer all my life, I understand the problem with expenses, not being able to ship animals, and having to buy feed. All of these are pretty important issues when it comes to a ranch where there's probably no TB—or hopefully no TB—but of course they're quarantined.

I can assure you that I've instructed CFIA to work to make sure that the feedlot is put in operation as soon as possible.

9 a.m.

Conservative

David Anderson Conservative Cypress Hills—Grasslands, SK

Can I ask you what's being budgeted? You have two components to the allocation. One is the compensation per slaughter of the index herd. That's regular programming. What's being budgeted for that, and what's being budgeted for the added feed costs?

9 a.m.

Liberal

Lawrence MacAulay Liberal Cardigan, PE

I don't have the exact figure, but we're working on it. There are a number of components to what we are going to do. I do not have the exact figure, but it will be announced very shortly, when we get it all pulled together. What I'm trying to do, as much as possible, is to understand the situation as it is and the financial restraints that are on these ranchers.

Quite simply, I do not have the figure, but I can assure you that we're working on it.

9 a.m.

Conservative

David Anderson Conservative Cypress Hills—Grasslands, SK

Okay. We'll look forward to that.

One of the things we need assurance on concerns past examples of where ranchers were stuck with the feed costs. I know people who have gone broke because they were stuck with the cost of feeding animals that weren't even their own. The CFIA walked away. They wouldn't help them in any way. They just basically said it wasn't their responsibility.

I'm glad to see a government that's responding in this way. I hope it will be adequate.

9 a.m.

Liberal

Lawrence MacAulay Liberal Cardigan, PE

I just want to answer that, and I thank you very much. I can't answer for previous situations, but in this situation, I think it's fair to say that CFIA has been reporting frequently to you and provincial governments across the country to make sure that everybody is kept abreast of what's taking place.

We want to make sure that this problem is addressed as quickly as possible and as efficiently as possible. We want to make sure that the ranchers are back on their feet and able to continue.

9 a.m.

Conservative

David Anderson Conservative Cypress Hills—Grasslands, SK

I actually just have to correct you a bit. We have not been happy with the amount of information we've been receiving. One of the reasons we brought the ranchers down here last week was so that they could tell their story. We asked for a briefing and we got one phone call: that's pretty much all. We had to ask for a second briefing. I was told I needed to talk to the minister's office. They wouldn't talk to me. I see that in the last day or so, I assume because you're here, we got a call from the office saying that they'd now like to do a briefing with us.

So the communication has not been what it needs to be. It's been what we expected, I guess. Ranchers have been frustrated as well.

I actually should bring up another issue. Last week, when the ranchers got back, basically the beef industry got the message from CFIA that the ranchers shouldn't have been here: they went too far in their conversation. I'm wondering, did that direction or that conversation from CFIA come from your office?

9 a.m.

Liberal

Lawrence MacAulay Liberal Cardigan, PE

No.

9 a.m.

Conservative

David Anderson Conservative Cypress Hills—Grasslands, SK

Mr. Kochhar, did that come from your office?

9 a.m.

Liberal

Lawrence MacAulay Liberal Cardigan, PE

I can assure you that if any rancher or any farmer wants to contact CFIA or me at any time, I'm fully open, and I think most farmers I have met would agree with that.

I'm truly sorry if you have not been informed quickly enough. What we're trying to do is make sure that the issue is addressed as quickly as possible, that the farmers have the money in their pocket.

I think if you check with the Province of Alberta and the farmers, they would agree that there has been good contact between CFIA and themselves. But looking at this serious situation that's affecting quite a number of farmers, the end result is what counts: to make sure they are back on their feet and adequately supplied on feed costs. That's why we're opening the feedlot. I've asked CFIA to open the feedlot. We can't pay 100% of everything, but about 90% of most things will be paid for. I think farmers would agree that this is pretty reasonable.

9 a.m.

Conservative

David Anderson Conservative Cypress Hills—Grasslands, SK

Okay.

9 a.m.

Liberal

Lawrence MacAulay Liberal Cardigan, PE

I can't help what was done in the past. This time it will be done.

9 a.m.

Conservative

David Anderson Conservative Cypress Hills—Grasslands, SK

In the past with the Avian flu, I understand there have been command posts. Producers have been on site on those command posts. That has not happened here. You've talked to industry. Producers are extremely frustrated. I can tell you that they are not getting information. They're are as frustrated as they can possibly be. They're starting to have community meetings because they don't know what's going on. Somebody needs to do a better job of communicating on this thing, and it needs to start now. CFIA does not have a good reputation out there. They could be doing a lot to improve that, and that's not happening.

I want to switch to another topic, and that is testing. I understand that the lab in Lacombe is no longer being used. When we had capacity to check fifty reactors, I understand a week, that was not being used to full capacity. I understand that lab...the access is restricted. What are you doing to get that backlog of reactors out of the system so we can get the quarantine off on these ranches?

9:05 a.m.

Liberal

Lawrence MacAulay Liberal Cardigan, PE

Thank you very much. That's a good question, and I'll let my CFIA counterpart, Mr. Kochhar, answer it.

9:05 a.m.

Conservative

David Anderson Conservative Cypress Hills—Grasslands, SK

As well, are there other labs available? You've only been using the one. I understand others are available and they have not been used.

9:05 a.m.

Dr. Harpreet Kochhar Chief Veterinary Officer for Canada and Associate Vice-President, Operations Branch, Canadian Food Inspection Agency

Thank you.

I want to go back a little bit to Mr. Anderson's earlier comments on both the communication and the lab component. For the lab component first, we have the laboratory network, which allows us access to provincial laboratories as well as federal laboratories. Lacombe laboratory is one of them. The ability for us to actually get those samples up to them has been very much improved, to the point that any information related to the samples is actually provided to the laboratory and the laboratory continues to work to its capacity. So we have added capacity. We've spread it around so that there is no delay; after the samples have been collected, the testing is done.

9:05 a.m.

Conservative

David Anderson Conservative Cypress Hills—Grasslands, SK

But Lacombe has only been—

9:05 a.m.

Liberal

The Chair Liberal Pat Finnigan

Thank you, Mr. Anderson

9:05 a.m.

Conservative

David Anderson Conservative Cypress Hills—Grasslands, SK

—used at full capacity for one week in the last month.

9:05 a.m.

Liberal

The Chair Liberal Pat Finnigan

Mr. Anderson, thank you so much.

Mrs. Lockhart, for six minutes.

Thank you.

9:05 a.m.

Liberal

Alaina Lockhart Liberal Fundy Royal, NB

Welcome, Mr. Minister and CFIA representatives. Thank you for being here today.

As you know, Fundy Royal is known for its dairy industry. I've been talking to many farmers after the signing of CETA. I'm wondering if you could expand on what has been put in place to ensure that supply management is protected with trade deals like CETA, to make sure the dairy industry remains competitive.

9:05 a.m.

Liberal

Lawrence MacAulay Liberal Cardigan, PE

Thank you very much, Alaina. I appreciate your question. Being a dairy farmer before I came here, it's certainly important to me.

I'm very pleased that the Government of Canada and I had the privilege to announce $350 million. This was done after consultation with farmers right across the country. What we did over the last number of months was to meet with agricultural groups and dairy processors from right across the country. With these consultations, we came up with this package. It's $350 million, and what the industry felt needed to take place in general was innovation and to make sure they were ready when CETA comes into play, and also to modernize the manufacturing sector, the processing sector, and the dairy industry overall. The $250 million over five years to help dairy farmers innovate is, in my view, a great package.

Now, we have to sit down again with the dairy farmers and decide just how this package will be implemented, but I'm sure it will be a great asset. Having been involved in agricultural programs years ago, I understand exactly what an asset these can be for the dairy producer. What it will mean is they'll produce, hopefully, more milk for less money. That's what we have to be able to do.

On the processing side, I have to say that the farm side was interested in the processing side too. They understand how important it is that the processors are able to deal with this issue. The $100 million over four years for the dairy processors was well received. As we know, there will be allocations of cheeses allowed into this country. This will allow our processors to innovate and be able to produce high-quality cheeses themselves. Of course, I have great faith, as I'm sure the whole committee does, in our processing sector, and in general the supply management sector.

Anyhow, what we have to make sure of is that all sides of the supply management sector, specifically in the dairy industry, remain strong, and with this $100 million, it will allow the processors to invest more into their operations and be able to produce different products that will be for sale.

We have to realize, too, that with CETA, the 700 million people in Europe are available. They are customers for us too, overall. I think we have a pretty aggressive processing sector that will probably become more aggressive and, hopefully, more beneficial to the dairy industry. It just means more money for the dairy farmer and more money for the processor, which means a better economy.