Evidence of meeting #2 for Agriculture and Agri-Food in the 43rd Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was agreement.
A recording is available from Parliament.
6 p.m.
NDP
6 p.m.
Secretary, Dairy Processors Association of Canada
Yes, exactly. It just happens that the last country is Canada, because my understanding is that Mexico and the U.S. have already completed their processes.
6 p.m.
NDP
Alistair MacGregor NDP Cowichan—Malahat—Langford, BC
It's complicated. You have the act saying that it comes into force when the Governor in Council says, but there's also the royal assent. The Governor in Council cannot act on that provision until royal assent is received. We're trying to find.... There's some interesting information here.
This is for the dairy processors. I'd like to know, given the threshold limits that are coming into effect, what your export projections were like for milk protein concentrates, for skim milk powder and for infant formula. Was there a noticeable upward trajectory in years going ahead, whereas now you're witnessing this big step down?
6:05 p.m.
Chair, Dairy Processors Association of Canada
I would say that over the last three years, since the industry-led resolution of class 6 and class 7—which is part of the agreement in the sense that it has to be replaced—we certainly saw that growth take place from 2015 to 2017 when the agreement came forward. I would say that what we have seen is a plateauing of the balancing of the system. I don't suspect that we would have seen continuous growth, but it was just as much a balancing piece. It's going to present the issue of being able to balance that system today. You wouldn't necessarily have seen it on the same trajectory. We already saw indicators that it was plateauing as the system came into balance. However, now we're throwing it off balance.
6:05 p.m.
NDP
Alistair MacGregor NDP Cowichan—Malahat—Langford, BC
Okay.
We have explicit mention here of milk protein concentrates, skim milk powder and infant formula. When the dairy processors came to my office, I was linked in to a phone call with a processor in the Lower Mainland, and he was talking about some of the other products that they would need time to try to transition to. Can you talk about that and about how important the two years is so that some of your processors can make that transition into other products?
February 20th, 2020 / 6:05 p.m.
Chair, Dairy Processors Association of Canada
Yes, the two years is, by any stretch, not enough. Just to put it into perspective, in order to invest in one of those technologies you're talking about, ordering the equipment requires a two-year time frame. Installing a greenfield requires a three-year investment, so I'm just going to say right off the bat that two years is nice but it's nowhere near enough.
Certainly, there have been investments made within Canada. We're sitting with two processors here who have made substantial investments in order to be able to do that. However, there's certainly going to be a transition period as we look to ensure that what we're doing will enable us to take milk and milk processing up the value chain in order to be able to invest. The reality is that for a greenfield, you won't see an ounce of milk go through any of those stainless steel pipes for 36 months.
6:05 p.m.
NDP
Alistair MacGregor NDP Cowichan—Malahat—Langford, BC
Wow. Okay.
I've also heard of the TRQ issue that came from CETA and how retailers were given the 55%. Is there any indication as to what's going to be happening with CUSMA?
6:05 p.m.
Chair, Dairy Processors Association of Canada
Certainly that is still open for negotiation. We have made it very clear as a processor association that we don't want the same agreement that took place under CETA.
We want to ensure that TRQ is put in the hands of those who have actually invested in bricks and mortar—to go to the point made earlier about being able to ensure that there are investments made. Therefore, that's certainly our stance. We continue to stand by that. We would expect and hope that the decisions made under CETA won't be repeated under CUSMA in terms of sharing the TRQs.
6:05 p.m.
NDP
Alistair MacGregor NDP Cowichan—Malahat—Langford, BC
I'm sensing that the strongest recommendation this committee can make to the international trade committee is to just give you as much time as possible. I'm getting some nods for that.
I only have 15 seconds left. Is there anything you want to add, Mr. Taylor?
6:05 p.m.
Member of the Board, Dairy Farmers of Canada
I will just say that we also support that the TRQs come to the processors, where that can be managed effectively. We support that.
6:05 p.m.
Liberal
The Chair Liberal Pat Finnigan
Thank you. This concludes our testimony.
I want to thank Mary from the Canadian Federation of Agriculture. I don't know if you flew here from the island, but—
6:05 p.m.
Liberal
The Chair Liberal Pat Finnigan
Wow. Anyway, have a good flight back. Thanks for taking the time.
Also, to the Dairy Processors Association of Canada, with Gilles Froment and Michael Barrett, chair, and the Dairy Farmers of Canada, with Jacques Lefebvre and Dave Taylor, thank you very much for being here with us again on such short notice.
For the rest of the group, we're going to suspend for a minute. We'll come back for some business in camera, including drafting a letter and a few other items of business. We'll suspend and we'll be back ASAP to finish.
[Proceedings continue in camera]