Agriculture Committee on April 30th, 2018

[Paul Thiel]

It's an interesting idea. I see no reason why we couldn't do that. We certainly recognize that not all the science we're interested in resides within Bayer; we must partner. We do partner with research institutions in Canada, but not to the degree we should, unfortunately. When it comes to North America, the vast majority of the dollars flow to the U.S., and there's absolutely no reason why we are not investing more heavily in Canada. We tend to internalize the development side, and there's absolutely no reason why we could not do more work externally on the development of our innovations for the marketplace.

[Pierre Breton, Liberal, Shefford, QC]

Mr. Smith, since you made an interesting presentation on research and development, I would like to know what you think about this.

[Dr. Jim Smith]

Our approach is to be collaborative. We have the FOODTECH Canada organization network across the country, and we have another network that we belong to called Innoventures Canada, which includes the National Research Council, Saskatchewan Research Council, and the other research councils around the country, including CRIQ in Quebec. I think collaboration throughout the whole cycle of innovation is critical.

[The Chair, Liberal, Pat Finnigan]

Thank you.

I now give the floor to Mr. Peschisolido for six minutes.

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

Mr. Chair, I'm very tempted to delve into the process of aging whisky, only for health reasons, but I think I'll resist that temptation and move on to other issues.

I'd like to thank both Mr. Smith and Mr. Thiel for appearing here.

As Mr. MacGregor did, I'd like to go a bit parochial.

Mr. Smith, you talked about the national scope of the organization. I'm blessed to represent the folks in Steveston—Richmond East, which is just south of Vancouver, and you mentioned that you're in the process of developing a centre in B.C. but that you haven't gotten there yet. Can you elaborate a little bit on that and on how we can be helpful, if we can, in helping that along?

[Dr. Jim Smith]

This is an initiative happening around the University of British Columbia, and which I believe is centred in the Okanagan. To be honest, I'm not personally involved with it, because they have some consultants helping them to move this forward.

In answer to your question, the main point would be that all of these centres need local, regional, and national support in order to work, because without that, there just isn't enough operational or capital funding to put a centre together. It was attempted a number of years ago in B.C., and it fell apart at that time because they just didn't have the breadth of support that was required. The more conversations that are had with people at different levels, the better.

Because of FOODTECH Canada, we have been able to take enquiries from different people in B.C. and distribute them around the country to where it would be appropriate for them to get the technical support. It's a virtual approach to providing that technical support to them. One of the issues we have is that companies really need local space to incubate their product with technical support. They need a pilot plan and they need people who can help them through the issues they have. Where there are those facilities is where we see the product development happening.

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

Mr. Thiel, you talked about the importance of partnership to Bayer. How can the Government of Canada and this committee be helpful to Bayer in developing a partnership with you guys in modernizing our process to be a bit more innovative and productive in our farming system?

[Paul Thiel]

I'm quite proud of the work that the government has done with us to date on that. We have collaborative research agreements, and we have processes in place that facilitate those agreements so that it's much easier to arrive at an end point, so that's been very good. Ultimately, we want to see the fruits of this innovation actually make it to the marketplace. I would come back to the purpose of this hearing, which is to ask how we put in place regulations that are acceptable to our stakeholders, which is a very broad word, to ensure that these innovations can get to the grower and ultimately to the consumer.

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

In the previous section, we talked about Canada being a small market. We have a surplus of products that we want to export. You mentioned the trade mission in China. In Vancouver and Steveston—Richmond East, China is an important market. Can you elaborate on what Bayer is doing for the Chinese market and how we can partner with you in dealing with non-tariff barriers in the Chinese market?

[Paul Thiel]

We have a very good relationship with the trade secretariat at Agriculture and Agri-Food Canada. We're in routine communication with them. Again, we're focused on that part of our business that we know is destined to China: canola. That's the single biggest opportunity. It's really about ensuring that the technology that we want in place to grow the most sustainable, safe, quality canola crop is available to the customer and acceptable to the Chinese. That's really focused around the acceptance of plant breeding innovation and the acceptance of the crop protection products that are used on the crop.

I'm sure for growers, there are lots of other issues, but I really have to stay within the purview of Bayer in my response.

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

Mr. Smith, you talked about the deficit on value added in food production in British Columbia. As you know, the greatest manufacturer is the agribusiness sector. How can government be helpful to you in helping expand the manufacturing part or the processing part of agriculture, in particular in B.C.?

[Dr. Jim Smith]

I think having a centre, having people who are focusing on the industry to help them with their development is key. If what we have done in P.E.I., in particular, and I think other provinces can learn from it is to.... When we have a company with the potential to get into a new product development, catch it at the early stage and get everybody in the room with them from different federal departments and provincial departments and funding sources and so on. This is so that they can be shepherded through this whole process, because it's hard. It's something that they need various perspectives on to help them through.

[The Chair, Liberal, Pat Finnigan]

Thank you, Mr. Smith and Mr. Peschisolido.

Unfortunately, we have to end it here because we have a bit of business to do with our committee. I certainly want to thank both of you. I would have loved to ask questions, being a producer myself, but maybe I'll limit it to one. The nice accent that you have, is that British, Scottish, or Irish? I think if you had mentioned Scotch instead of whisky, I would have had my answer. If you don't mind....

[Dr. Jim Smith]

I can't say just Scotch because it's for whisky globally. Yes, I'm a Scotch.

[The Chair, Liberal, Pat Finnigan]

Thank you so much and thank you for your presence here today.

We shall suspend, and then we go back to our business section.

[Proceedings continue in camera]