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.

On the agenda

MPs speaking

Also speaking

Richard Davies  Senior Vice-President, Sales and Marketing, Olymel L.P.
Anthony Eikelenboom  Drover, Scotian Cattle Company
Clerk of the Committee  Mr. Marc-Olivier Girard
Ian Blenkharn  Retired Business Executive and Farmer, As an Individual
Kathleen Sullivan  Chief Executive Officer, Food and Beverage Canada

3:55 p.m.

Drover, Scotian Cattle Company

Anthony Eikelenboom

Yes, there's a soft implementation right now with how we're shipping these animals, and then, come February 2022, we will no longer be able to ship those calves to Quebec.

I can maybe elaborate a little bit more. It comes with the trucking regulations. It takes about 14 or 15 hours—16 maybe with a coffee break—for the truckers to get to Quebec, and that's too long, so we won't be able to ship those calves to Quebec and put them in the market there.

That's why we need to do what we're doing here right now and create more markets here in Nova Scotia and so forth.

3:55 p.m.

Conservative

Richard Lehoux Conservative Beauce, QC

How could this issue be resolved?

3:55 p.m.

Drover, Scotian Cattle Company

Anthony Eikelenboom

I think we're doing a good job here in Nova Scotia right now in solving the issue by promoting these beef calves, which are better finished in the feedlots. The one problem that we have here in the east, and especially in Nova Scotia, is that we do not have any federal plants here, so we can't market our product. With just provincial plants here, we're very limited in where we can sell our product. If we had that federal plant, we could go Canada-wide and beyond.

3:55 p.m.

Liberal

The Chair Liberal Pat Finnigan

Thank you, Mr. Eikelenboom.

We can come back to this later. Unfortunately, given Mr. Davies' sound issues, we can't continue.

Now we'll go to Mr. Blois for six minutes.

Go ahead, Mr. Blois.

January 26th, 2021 / 3:55 p.m.

Liberal

Kody Blois Liberal Kings—Hants, NS

Thank you, Mr. Chair.

For my questions, I'll start with Mr. Eikelenboom.

Anthony, it's great to see you. You're just down the road from me here in Nova Scotia, and you brought a different perspective to this committee as someone who actually transports animals. A lot of our focus of course is on processors.

I just want to go back to the transport regulations. You and I have had conversations outside of this committee about the good intention of the legislation. Although the current transportation of bob calves is to Quebec, these regulations actually present an opportunity for us to do more processing in the Maritimes if we can move forward on that. Is that a fair statement?

3:55 p.m.

Drover, Scotian Cattle Company

Anthony Eikelenboom

Yes, very fair.

3:55 p.m.

Liberal

Kody Blois Liberal Kings—Hants, NS

So right now, if a dairy farmer is cross—

3:55 p.m.

Bloc

Yves Perron Bloc Berthier—Maskinongé, QC

Sorry to interrupt you, Mr. Blois.

Mr. Chair, there's no longer any interpretation.

4 p.m.

Liberal

The Chair Liberal Pat Finnigan

Can we check the interpretation, Mr. Clerk?

4 p.m.

The Clerk

Could you start again, please? I believe that the issue has been resolved.

4 p.m.

Liberal

The Chair Liberal Pat Finnigan

Can you try again to see if it works? Go ahead.

4 p.m.

Liberal

Kody Blois Liberal Kings—Hants, NS

Sure. Mr. Chair, I have about 40 seconds, but I'm 40 seconds in just from my timing. Is translation going for Mr. Perron?

4 p.m.

Bloc

Yves Perron Bloc Berthier—Maskinongé, QC

Yes, it's fine.

4 p.m.

Liberal

Kody Blois Liberal Kings—Hants, NS

Okay.

Anthony, we were talking about the cross-breeds for the bob calves. Where would those actually end up right now? If a dairy farmer is cross-breeding, are they ending up in P.E.I.? Are they going to Atlantic Beef?

Can you explain a little bit about that?

4 p.m.

Drover, Scotian Cattle Company

Anthony Eikelenboom

Right now, we sell a few of the calves in our home province here in Nova Scotia. I'd say a good 90% to 95% of those calves do go to Prince Edward Island. They're fed over there. I think Atlantic Beef has a contract going right now with a few of the feedlots over there. Again, Atlantic Beef is a federal plant, so they have the ability to make connections with the farmers there, and yes, that's what happens with those beef calves right now. It would be nice to move those calves here to Nova Scotia and give our farmers here in Nova Scotia a fairer playing field.

4 p.m.

Liberal

Kody Blois Liberal Kings—Hants, NS

You mentioned provincial processing, because of course in Nova Scotia we do have some level of processing capability; they're only provincially licensed. The only federal inspection plant is in Prince Edward Island. Why is it that if the processing facilities in Nova Scotia are at nearly 100% capacity, there hasn't been a private sector solution to be able to move this forward? Is it just that the economies of scale aren't there? Is this not a sexy investment that people want to put their money into? If we're at 100%, why hasn't some entrepreneur moved this forward and created a new facility?

4 p.m.

Drover, Scotian Cattle Company

Anthony Eikelenboom

I think it goes back to profitability, if you know what I mean. As you say, where Nova Scotia sits logistically is not the best place, a “sexy” market as you called it, and if we had some federal money or if we had that federal plant, that would probably create a better picture for the private sector to come on board. Maybe if we had the government's help, that will show the private sector there is a viable business, and I think it would take off tremendously there. We just need some processing capacity here in Nova Scotia.

4 p.m.

Liberal

Kody Blois Liberal Kings—Hants, NS

You mentioned in your speech about the provinces taking the lead. I know, from speaking to Minister Thompson in Prince Edward Island, that they recognize this is an issue; they're working to incentivize their dairy farmers, particularly on the dairy issue around bob calves. Writ large, you see this as starting at the provincial level, and maybe the federal government support is through one of the regional development agencies or through the Canadian agricultural partnership, where funding channels already exist to help support that. Is it fair to say that the provinces have to take the lead, and then the federal government perhaps can try to supplement any efforts in that regard?

4 p.m.

Drover, Scotian Cattle Company

Anthony Eikelenboom

For sure, 100%. I have some ideas that I would like Nova Scotia to do to help the farmer with the cost of the actual semen, because if we're promoting breed beef to the bottom two-thirds, and breed the sexed semen to the top third, when you get into the sexed semen and stuff, it's more money, so maybe the provincial government can help out there and go from there.

4 p.m.

Liberal

Kody Blois Liberal Kings—Hants, NS

Just so we get this on the record, in terms of—

4 p.m.

Bloc

Yves Perron Bloc Berthier—Maskinongé, QC

I beg your pardon, Mr. Blois. I'm sorry, but the interpretation has disappeared again.

4 p.m.

Liberal

Kody Blois Liberal Kings—Hants, NS

Your English is good though, Yves.

4 p.m.

Bloc

Yves Perron Bloc Berthier—Maskinongé, QC

I know.

You know that it's important, all the same.

4 p.m.

Liberal

Kody Blois Liberal Kings—Hants, NS

Mr. Chair, I'm at about four and a half minutes, just for your timing so we stay on the same page. I'd like to finish if I have 90 seconds once we get translation figured out.

4 p.m.

Liberal

The Chair Liberal Pat Finnigan

Kody, you have a minute and 24 seconds left on my watch.