Thank you very much, and good afternoon, everyone.
Mr. Chair and members of the committee, thank you for this invitation to appear before you today to discuss agriculture and the agri-food supply chain. My name is Bill Campbell, and I am currently serving as president of Keystone Agricultural Producers. Keystone Agricultural Producers is the voice of farmers in Manitoba. We represent over 4,600 farms across the province, along with 20 commodity groups and organizations. We advocate on behalf of all farmers to all levels of government.
Over the past couple of years, Canadians have come to see how agriculture and agri-food supply chains can no longer be taken for granted. Floods, fires, overseas conflicts and railway work stoppages have highlighted how interconnected and fragile our supply chain is. Creating resiliency and long-term stability in our supply chain is a complex endeavour. This resiliency and this stability are dependent on a supply system in which each individual part operates in unison with the others. Having a resilient and stable supply chain means that problems are addressed in an efficient and effective manner.
Labour shortages, transportation issues and rising input costs are all top concerns for Manitoba producers. These uncertainties can impact market stability and eventually supply. Nearly all grain elevators in Manitoba are served by CP or CN, which means that grain farmers are fully reliant on a single railway to have their products shipped to market. This railway structure makes disruptions such as work stoppages or natural disasters detrimental to our industry and has cascading effects throughout the supply chain. Farmers are not only reliant on class I railways to have their products shipped to market, but are dependent on the railways for inputs such as fertilizer and feed for livestock. Fertilizer is very important to crop yields and ultimately farm revenue. The latest CP work stoppage created serious concerns amongst Manitoba farmers given the closeness to the seeding season and the need for nutrient sources and feed shortages. Given how critical rail transportation is to the agricultural supply chain, our organization recommends that the federal government classify class I carriers as an essential service, which would limit an unfettered strike scenario.
Another issue of concern for Manitoba farmers is the cost of inputs. Producers are seeing significant price increases for nitrogen, phosphorous and potassium fertilizers. For example, last year the average producer in Manitoba paid around $700 a tonne for urea; they are now paying close to $1,300. Some prices for anhydrous fertilizers are quoted as being $2,270 per tonne, while in the fall of 2021, the price was $1,170. Furthermore, high input costs and high grain prices are burdensome for livestock operations that require the growing and buying of feed for their animals.
Chronic labour shortages have been an ongoing problem in the agricultural sector. Currently there exist challenges with hiring skilled workers, difficulties with employee retention, geographical recruitment barriers and an aging workforce. A few pork producers in the province have commented that 50% of their barn positions remain unfilled.
Agriculture is perhaps one of the most critical and essential industries in Canada. Consumers often take for granted the quality, safety and availability of food found in grocery stores. A large part of the population is unaware of all the steps that are required to bring livestock, wheat or other commodities from a field to the grocery shelves. Widespread drought and severe supply chain issues can have major impacts on the availability of food in stores. Water and food are essential and basic human needs. If these needs are not met for most of the population, then the outcomes are dire.
Nearly all Canadians lack the skills, knowledge or access to land needed to obtain an independent supply of food or water outside of grocery stores. For this reason, the producers and workers who are part of the agricultural supply chain are an indispensable component to ensure the health and safety of all Canadians. There is perhaps no better time than now to act on addressing the current issues in our supply chain.
Thank you once again for the opportunity to meet with you today. I am more than happy to answer or address any comments or questions you may have.