Evidence of meeting #13 for Agriculture and Agri-Food in the 43rd Parliament, 2nd session. (The original version is on Parliament’s site, as are the minutes.) The winning word was processing.
A recording is available from Parliament.
Liberal
The Chair Liberal Pat Finnigan
Witnesses can always send us their views in writing. I have no objection to that.
It's always up to the witness to choose the language in which they wish to speak. I wouldn't want them to feel obliged to speak in a given language simply because we're unable to provide interpretation.
Bloc
Yves Perron Bloc Berthier—Maskinongé, QC
Okay.
My next question is for Mr. Eikelenboom.
You spoke extensively about the new regulations for animal transportation. Do you think that these regulations were introduced quickly?
I don't know whether you know this, but the UPA in Quebec had asked for a postponement. Studies are still being conducted on the topic.
Would it be possible to relax the rules or to establish a stopping point that would enable you to deliver to the places in Quebec where you used to deliver?
Drover, Scotian Cattle Company
We can get to Quebec from the Maritimes, but we can't get to where we have to go, like the assembly yard for those bob calves. In order for those calves to get to the right farm to be comfortable—to be handled the correct way and everything—that's where they have to go. We could get inside the border, but then we run across not having the proper establishment to make sure that these calves are handled the correct way with proper bedding, with milk replacer on hand and all that stuff. I guess that's why we have to get to Saint-Hyacinthe.
Bloc
Yves Perron Bloc Berthier—Maskinongé, QC
Okay, thank you.
So there's a real need to decentralize processing to ensure that it happens in Nova Scotia.
You said that there are processing plants in Nova Scotia, but that they have only provincial approval.
Would a loosening of interprovincial trade standards help you?
Drover, Scotian Cattle Company
What do you mean by changing the interprovincial rules?
Bloc
Yves Perron Bloc Berthier—Maskinongé, QC
The goal would be to ensure easier movement. If the meat processed in Nova Scotia meets Nova Scotia standards, perhaps the meat is of good enough quality to be sold, for example, in Ontario. A few witnesses have told us about the need for more flexibility in interprovincial trade standards.
Do you think that this could help you?
Drover, Scotian Cattle Company
I guess that would be a great option, maybe a stepping stone or another avenue that should be explored, yes.
Bloc
Yves Perron Bloc Berthier—Maskinongé, QC
If there were plans to set up a federal slaughterhouse near your farms, it would be ideal, since there would be less transportation. I gather that there's a profitability issue.
Do you think that more government support is needed?
Drover, Scotian Cattle Company
Yes. We will need support from the federal government, and that will expand where we can go.
Liberal
The Chair Liberal Pat Finnigan
Thank you, Mr. Eikelenboom.
Mr. MacGregor, you have six minutes. Go ahead.
NDP
Alistair MacGregor NDP Cowichan—Malahat—Langford, BC
Mr. Chair, if we have questions for Mr. Davies, are we verbally communicating them now or do we submit them to him in writing? I'm not sure. Are all my questions going to be to Mr. Eikelenboom at this time?
Liberal
The Chair Liberal Pat Finnigan
As you know, the sound doesn't work. If the committee so wishes, we can certainly ask those questions and ask Mr. Davies to submit them in writing and that will be part of our committee, if everybody is okay with that. Are there any issues with that?
If you want to pose a question—one or two or whatever—and then, Mr. Davies, if you want to take note and respond in writing.... If that's okay with everyone, we'll go with that. Unfortunately, we need to have translation.
Bloc
Yves Perron Bloc Berthier—Maskinongé, QC
I also had many questions for Mr. Davies. Should I submit them to him in writing or should I ask them verbally after Mr. MacGregor's remarks?
Liberal
The Chair Liberal Pat Finnigan
If you have Mr. Davies' contact information, you can submit them to him in writing since we're running out of time.
Senior Vice-President, Sales and Marketing, Olymel L.P.
I'd be pleased to answer all your questions in writing.
Liberal
NDP
Alistair MacGregor NDP Cowichan—Malahat—Langford, BC
Mr. Davies, maybe I'll follow up in a little more detail, just so you're prepared. Some of the questions I was going to ask you concerned the fact that in their recent meeting in November 2020 the federal and provincial governments formed a working group to address the imbalance between the retail sector and the processing sector that you referred to.
I wanted to dive a little more deeply into Olymel's reaction to that—whether you feel that the action so far is moving at the correct pace and whether you think it's going to be adequate. Can you illustrate a little more on that particular issue? It's certainly one that has come up from previous witnesses. It would be great to have a more fulsome answer from you in that respect.
Mr. Eikelenboom, I think a lot of regions in Canada are under similar circumstances as where you're from. Certainly the way COVID-19 has impacted our processing sector, particularly in meat processing, has led many regions to rethink our dependency on the old status quo supply network.
Maybe you can fill us in with a little more detail on the efforts thus far to try to secure federal funding for a federally regulated plant, because I think other regions in Canada would love to learn from your efforts so they could take a shortcut and not have to start from square one. Can you fill us in a little bit more on the efforts thus far?
Drover, Scotian Cattle Company
All right. I'm not sure how to answer your question because I like to buy and sell cows. I was asked to come here and give my input and stuff like that. I am a drover, but I am going to come to you from a producer's perspective here in Nova Scotia.
I find that in Nova Scotia we're behind the eight ball. Our input costs, our trucking and the price we receive for stuff here in the Maritimes always seems to be less than when you get into central Canada. I know there are other parts of Canada that are probably in our predicament too, but I find that where Nova Scotia lies, we don't have that big of a population here, so I think the reason why farmers here in Nova Scotia would like something more secure is so that we can get back to a level playing field, so that it can become an economical business, if you know what I mean.
For those reasons—our input costs, our trucking costs—we receive less money when we sell our product, because it has to go up the road. It has to do this; it has to do that. That's why I support having a federal plant here in Nova Scotia.
I will be honest; there's more work to be done, but hopefully these are the beginning stages. Maybe we can get a few more industry players here and some more government talks so that the ball starts rolling forward.
NDP
Alistair MacGregor NDP Cowichan—Malahat—Langford, BC
You're essentially held captive by forces beyond your control.
NDP
Alistair MacGregor NDP Cowichan—Malahat—Langford, BC
You mentioned that the current provincially regulated plants are operating near capacity, so finding a way to grant them a federal licence is not really a solution because they are already dealing with domestic capacity issues. You actually need a separate federally licensed facility so that you can take some of that excess.
Drover, Scotian Cattle Company
Yes. I would say that the average plant here in Nova Scotia has a capability of processing—we're going to talk beef here because I know that best—at the most 15 head per day. With Scotian Cattle Company, we're starting to buy 150 to 200 head per week.
With the new transportation rules coming in, we have to start looking at the classes of cows. Is the cow older? Then the new rules state that she should be processed more local to home, in your own province or whatever. Right now, we're having to put those cows on hold until I get a hole at one of the provincial abattoirs. I guess that's where I'm coming from. We cannot get these animals processed when they should be processed, especially the compromised animals here.
NDP
Alistair MacGregor NDP Cowichan—Malahat—Langford, BC
I know the capital expenditures are huge, and that's where the federal government can play a role. Once that facility gets off the ground with that capital investment, is there interest in operating it in a co-operative model where everyone would have a buy-in, a stake in the operation of the plant?