Good afternoon. Thank you for having us.
Canada has a strong and diverse agriculture sector, and the foundation of this sector is fertilizer. Fertilizer Canada is an industry association representing manufacturers, wholesalers and retail distributors of nitrogen, phosphate, sulphur and potash fertilizers. These fertilizers are used in the production of agricultural crops that help feed the world. Simply put, fertilizer is food for plants.
In Canada, the fertilizer industry contributes over $23 billion annually to the economy and over $12 billion to GDP. Over 76,000 people are employed, directly or indirectly, by the industry. It’s not just Canadian farmers who rely on our fertilizer; 12% of the world’s fertilizer supply comes from Canada. As a major export industry, we supply fertilizer products to over 75 countries.
The world’s population is estimated to grow by two billion people by 2050. Global agriculture production will need to increase by 60% to 70% in order to feed all these people. This will not be possible without fertilizer. Higher yields will be necessary to meet the growing global demand for Canadian crops. This was echoed in the federal government's target of $75 billion in agri-food exports by 2025. Geopolitical turmoil in the world—most recently, the war in Ukraine—adds to the strain on the food supply. In response to the war’s impact on Russian potash supplies, our member companies in the potash sector have expanded their production, adding millions of additional tonnage to global supplies.
We are not only experts in fertilizer products but also innovation, knowledge and best practices for fertilizer use. 4R nutrient stewardship is a Canadian-developed innovation and, for more than a decade, we have worked with farmers, industry, the research community, governments and conservation groups to implement these best management practices, in order to optimize nutrient uptake and crop production while reducing environmental costs.
We have worked hard to become the global standard, including partnering with the Co-operative Development Foundation of Canada to deliver the 4R solution project in Africa for the last three years. The concept is simple: Apply the right source of nutrient, at the right time and in the right place, and you will get the best results. Fertilizer management practices need to balance economic, social and environmental dimensions of sustainability. Doing this requires a fair and predictable regulatory environment that supports programs like 4R and continued innovation in the sector.
Fertilizer is a critical piece to ensure food security at home and around the world. To ensure the Canadian fertilizer industry continues to play a pivotal role in food security, we ask the government to continue to enhance collaboration with the industry. Working together is the best path forward for achieving our mutual goals. We also ask for support in raising awareness and increasing uptake in the 4Rs to help farmers optimize their fertilizer inputs for strong, healthy crops and minimize their environmental outcomes.
Our industry has worked hard to ensure farmers and growers have the critical input of fertilizer for their crops. We need a practical, consistent and predictable regulatory environment, so our members can make long-term plans and investment. Canada must be seen as a reliable trading partner, and the government must work with industry to ensure there are no disruptions to the supply chain, so our products can get to our farmer customers, who can grow hearty and healthy crops to feed the world.
Thank you for the opportunity to present to you, and for your time.