Agriculture Committee on Jan. 28th, 2021

[Margaret Lamb]

I think your openness to look at small, I'm going to say directed, investment that regionally...and that we can work together collaboratively to get as much food security in here as we can. I think some of it will be, can we work together as a region? The others...because New Brunswick...we need cull sow processing because of all the isolated producers we have. I know the small facility we're looking at, which would look at 200 to 400 animals slaughtered per week, would be from $2.8 million to $3.2 million. To do 2,500 a week you're looking at $9 million to $12 million. When we first started, we even started looking at bringing in a mobile unit to make it stationary, and that was out of the States, and you're still looking at $1 million with even smaller capacity.

[Alistair MacGregor, NDP, Cowichan—Malahat—Langford, BC]

That's pretty significant.

Are you aware of programs like the local food infrastructure fund? Is that something that you'd like to see more of on the road ahead, providing that kind of capital? We've heard of projects being funded where someone establishes a community kitchen that allows several farmers to use it at the same time in some kind of a co-operative model. Then they're going from raw processed vegetables to value added. Is there any value in funds like that, as well?

[Margaret Lamb]

There certainly is, and I think Linda Best, as Kody will attest to, started work with FarmWorks, and they've invested capital into businesses such as even mine. We bought a slicer, a $32,000 used piece of equipment. Even funding where you can have used equipment and not always have to invest in brand new so that it's more accessible to small processors and small businesses....

[Alistair MacGregor, NDP, Cowichan—Malahat—Langford, BC]

Thank you so much.

Monsieur Filiatrault, I'll just use my last minute. We've had a number of witnesses talk about the impacts of labour on their ability to increase processing capacity. In the short time I have left, do you have anything to add on that front on how it's impacted your business?

[Nicolas Filiatrault]

It really is a challenge for our business.

I am not sure I understand the question. If you're talking about the processors, the challenge is everywhere you look. They need to reinvent themselves and offer new ways of doing things. Currently, the market has stabilized to some extent.

[The Chair, Liberal, Pat Finnigan]

Thank you, Mr. Filiatrault.

Thanks, Mr. MacGregor.

Now we'll move to the five-minute round.

Mr. Lehoux, you have the floor for five minutes.

[Richard Lehoux, Conservative, Beauce, QC]

Thank you, Mr. Chair.

I thank our two guests for being with us this afternoon.

I see that we have two production and processing businesses. One is a supply-managed poultry operation and the other is a pork operation. They are facing the same issue, the concentration of processing. How can we find a viable solution for processing?

I understand that regulation plays a key role. For one thing, in Mrs. Lamb's case, it is different for smaller abattoirs that are subject to provincial regulations. Processing cannot be exported to other Canadian provinces.

Mrs. Lamb, could the Canadian Food Inspection Agency adapt some regulations to at least allow for interprovincial transfers within the country?

[Margaret Lamb]

The interesting part is, I can transport a live animal anywhere across Canada, so as far as taking that out I can do that. You just can't transport a dead animal across provincial borders without federal inspection. We need to bring meat in, so for our project it would be more about, how do we get some sustainability within our own province and our region by being able to access some of the markets that we actually have here? I don't know if that answers what you were asking.

[Richard Lehoux, Conservative, Beauce, QC]

Yes. It does answer my question.

However, we are seeing a problem between provincial and federal government regulations. I want to find a way for us to work together.

As you said, you can transport a live animal from one end of Canada to the other, but you can't transport a carcass, which is inconceivable to me. So we have to change the regulations.

[Margaret Lamb]

I have no answer for you, my dear. We've been shaking our heads at it for a long time.

[Richard Lehoux, Conservative, Beauce, QC]

Thank you, Mrs. Lamb. In any event, we will keep looking.

Mr. Filiatrault, you tried to source products elsewhere and you ran into problems. Did the regulations stop you or was it the supply?

[Nicolas Filiatrault]

It was a mixture of the two. Also, the unwritten regulations make it very difficult to do, especially in my case.

[Richard Lehoux, Conservative, Beauce, QC]

Mr. Filiatrault, what do you mean by “unwritten regulations”? I find that quite strange.

[Nicolas Filiatrault]

Both large-scale processors protect their markets a little bit. You have to understand and recognize that my product is very specialized. It is very high-quality whole round chicken, tied a certain way. You have to consider that too. It is not mixed breast of any size.

[Richard Lehoux, Conservative, Beauce, QC]

I feel that the issue of traceability is really important.

Is it really the processors' decision? In my opinion, it has to be doable. Is it just that they don't want to do it right now?

[Nicolas Filiatrault]

Absolutely. That's what I think too. I believe it's just a matter of choice, since, as I said, it has been done for me before.

[Richard Lehoux, Conservative, Beauce, QC]

Okay.

So it wouldn't be impossible to feel that a large processor is able to provide traceability.

[Nicolas Filiatrault]

No, because if some animals have a disease, I guarantee you that they will—

[Richard Lehoux, Conservative, Beauce, QC]

They will find the source.

[Nicolas Filiatrault]

They will find out where it came from, in my opinion.

[Richard Lehoux, Conservative, Beauce, QC]

Okay.

The federal government could make funding more flexible for small abattoir startups. The funding would provide a little more opportunity for those businesses to start up. Other witnesses who spoke earlier were thinking along similar lines.

[Nicolas Filiatrault]

Funding needs to be more flexible and we also need to increase slaughter capacity by upping the volume that you are allowed to buy.

[Richard Lehoux, Conservative, Beauce, QC]

Does the operation where you source have supply problems owing to guaranteed volumes at the abattoirs?

[Nicolas Filiatrault]

Absolutely.

[Richard Lehoux, Conservative, Beauce, QC]

Okay.