Evidence of meeting #28 for Agriculture and Agri-Food in the 44th Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was need.
A recording is available from Parliament.
Chief Executive Officer, Global Institute for Food Security
It would be port and rail.
Liberal
Liberal
Ryan Turnbull Liberal Whitby, ON
It's great to have all the panellists here.
I will direct my first set of questions to you, Dr. Fraser. I note that you made some really good suggestions in your opening remarks, all of which I've taken note of. In addition to that, though, I read a recent article in the Financial Post that you wrote and that I thought was really good. In it you said that the global food system depends on three basic assumptions—seamless trade, stable geopolitics, and cheap energy in a moderate climate. I would say today, and I think you said in the article, that those assumptions are not being met any longer, and it's naive for us to think that we can rely on a food system built for a different era.
My question to you is this: In addition to the things you've already said, is there anything else you'd like to tell us about how we build the food system for the 21st century?
Director, Arrell Food Institute, University of Guelph, As an Individual
Great. I'll answer very quickly.
Food insecurity is a function of people not being able to afford enough to eat. If we want Canadians to be more food secure, we need to address the cost of living and housing. This moves us out of food and into wages and the cost of living. I think the best levers to deal with the food insecurity problem are housing-related and wage-related.
In terms of the food production side, it's carbon neutrality, technological innovation and, probably, more resiliency, meaning less of this dependence on very long supply chains that wind through mountains that could be flooded out. We need to recognize that we are entering the age of disruption and need more backup plans and redundancy in our food systems. It's whatever we can do to build redundancy.
Those would be the two key pillars I would jump on immediately.
Liberal
Ryan Turnbull Liberal Whitby, ON
Thank you, Dr. Fraser.
Dr. Webb, I'll go to you for one quick question, with limited time.
I note that in your opening remarks, you focused on innovation and investment. I also note that your organization, with many partnerships, has done a really great job in developing a national index on agri-food performance, focusing on a set of sustainability indicators. I think you said we should be very proud of this. We should be.
One of those indicators was sustainable finance. I want to ask you whether there are opportunities within the realm of sustainable finance that could benefit the agri-food sector in terms of this conversation.
Chief Executive Officer, Global Institute for Food Security
Thank you for the opportunity.
I think, at the end of the day, the short answer is again yes. You like that answer. It's right across the entire ecosystem we're working in, from farm to research to innovation to the ability to bring it to the marketplace, and being able to look at it in the context of how we even enhance the trade opportunities.
Again, I think it's definitely a key element in an integrated solution space, which we need to pursue as a nation.
September 28th, 2022 / 5:45 p.m.
Liberal
The Chair Liberal Kody Blois
Thank you, Mr. Turnbull.
Thank you, Dr. Webb.
Colleagues, this concludes our first panel, but please don't go far. We are going to turn panels over very quickly.
On behalf of the committee, let me thank Mr. Walker, who is in the room, and Dr. Webb and Dr. Fraser, both of whom joined us.
These are really important insights. Thank you for the work you do and for your testimonies here today.
Don't go far, colleagues. We're going to turn this over in two minutes.
Liberal
The Chair Liberal Kody Blois
Okay, colleagues, we're going to get started again. I know everyone is enjoying getting back in person and getting the chance to connect, but we have to get some business done.
On our second panel today, we have, from the Canola Council of Canada, Chris Davison, who is the vice-president of stakeholder and industry relations. Mr. Davison is in the room. It's great to see you.
From the Canadian Federation of Agriculture, we have Scott Ross, who serves as the executive director. Mr. Ross, it is great to see you on video conference.
We also have Ron Lemaire, who is the president of the Canadian Produce Marketing Association. Mr. Lemaire, we are going to give your microphone the best chance we can, and you are up third.
Mr. Davison, you have up to five minutes. I'm going to turn the floor over to you.
Chris Davison Vice-President, Stakeholder and Industry Relations, Canola Council of Canada
Thank you, Mr. Chair and members of the committee. Thank you for the opportunity to be with you today and to join you with my fellow panellists. As mentioned, my name is Chris Davison, and I'm the vice-president of stakeholder and industry relations with the Canola Council of Canada.
The council encompasses all links in the canola value chain. Our members include canola growers, life science companies, grain handlers, exporters, processors and other industry participants. Our shared goal is to ensure the industry's continued growth and success and to do this by meeting global demand for canola and canola-based products, which include food, feed and fuel.
Canola's success is Canada's success. Our industry represents almost $30 billion in economic activity annually, some 207,000 jobs, $12 billion in wages and the largest share of farm cash receipts in the country. Our strategic plan is built on three key pillars: sustainable and reliable supply, differentiated value, and stable and open trade.
In appearing before you today, I was asked to focus my comments on domestic policy recommendations that can improve Canadian exports on the global stage. As an industry that exports 90% of what we produce as canola seed, oil and meal, that is music to my ears. In responding to this request, I'm going to group my remarks into three areas of interest: market access and trade, regulatory initiatives and innovation.
Before doing so, however, I want to acknowledge the very real food insecurity challenges we face. Certainly the war in Ukraine and other recent events and developments have brought this into focus; however, food insecurity is not an episodic occurrence. It may be more acute or exacerbated at different points in time, but it is systemic in nature and, as we know, has both domestic and international dimensions. Canada generally, and our industry specifically, is in the fortunate position of being able to help address some food insecurity challenges. It is a well-established fact that Canada produces more than it needs for domestic purposes, and as I mentioned previously, canola is no exception.
That said, we are not without our challenges. The biggest among those, and the one with the most direct implications in terms of our ability to contribute to the alleviation of food insecurity, is meeting the demand challenge. Demand signals paint a general picture of significant demand growth for the foreseeable future, driven by global production challenges, geopolitical events and interest in healthy vegetable oils, among others. These demand signals have in turn served as a catalyst for the development of expanded processing capacity in Canada, as reflected in recent investment announcements and activity totalling close to $2 billion.
Therefore, it is an exciting and dynamic time for our industry, but in order to realize this growth potential and play a continued and arguably enhanced role in helping to address food insecurity, meeting demand is job number one. Market access and trade, current regulatory initiatives, and innovation all have a critical role to play in this regard.
With regard to market access and trade, it is no secret that open borders and open markets are the best way to help keep food plentiful, and they play an integral role in price stability. Market access and trade in the face of the war in Ukraine as well as other factors, including post-COVID protectionism, intensified competition, and the impacts of climate change, to name just a few, are critical. Accordingly, and as part of the broader Canadian agri-food sector, the canola industry is supportive of and an active participant in efforts to open new markets, encourage and demonstrate Canadian leadership in international fora with regard to rules-based trade, and strengthen advocacy capacity and government-industry collaboration.
In terms of current regulatory initiatives, of which there are several, I would simply say that we need to double down on our commitment to the development and implementation of science-based and evidence-based regulations that enable development, commercialization and access to the tools needed to realize increased production to be able to meet demand. We need to do this to provide clarity, enhance our competitiveness, attract additional investment and ultimately keep and put new tools in the hands of canola growers as they navigate an increasingly challenging production landscape.
With regard to innovation, it is well recognized that innovation has driven canola to become one of the world's most important oilseeds and Canada's most valuable crop, and we are poised to do even more with not just domestic, economic or environmental benefits as the result, but also in terms of our ability to help address food insecurity.
This past spring, we released a refreshed canola innovation strategy. It outlines a vision for near-term priorities to support the continued growth and development of our industry, including meeting the demand requirements referenced previously. The strategy encompasses four pillars: performance, precision, protection and product. If successfully implemented in terms of collaboration, effort, funding and regulation, this strategy will support the next phase of growth of the Canadian canola industry by improving performance, further increasing precision, protecting the crop and markets, and focusing on canola's strengths as an oilseed crop.
This will not only create more economic activity but also enhance our ability to address global food insecurity challenges as a result of the productivity gains it delivers. We would be pleased to share a copy of the innovation strategy with members of the committee if it is of interest.
By way of conclusion, the world wants and needs more Canadian canola. We need to work in partnership if we are going to work effectively to deliver it, inclusive of addressing food insecurity challenges as well as other shared objectives. We must also recognize that our ability to do so is in no small part dependent on our competitiveness in global markets. As we take domestic policy decisions, we must do so in a way that does not add costs that render our products less competitive.
Thank you for your time today. I look forward to our discussion.
Liberal
The Chair Liberal Kody Blois
Thank you very much, Mr. Davison.
We're going to turn to Mr. Ross and the Canadian Federation of Agriculture for five minutes.
Scott Ross Executive Director, Canadian Federation of Agriculture
Thank you, Mr. Chair and committee members.
I'm speaking to you on behalf of the Canadian Federation of Agriculture, representing approximately 190,000 farm families across Canada from coast to coast to coast. I would like to thank you for the opportunity to speak on global food insecurity.
Earlier this week I attended a presentation by David Beasley, executive director of the UN World Food Programme. He emphasized that a lack of fertilizer and production issues in major agricultural regions will result in a dramatic increase in the number of people globally impacted by acute food insecurity, already at 345 million people worldwide. The gravity of this situation is only heightened by the link between food insecurity and civil unrest, with his remarks noting the urgent need to maximize global food production and enhance resilience in agri-food systems.
Canada is blessed with an enviable endowment of natural resources and highly efficient agricultural producers, yet we're not immune to the global challenges posed by the COVID-19 pandemic, the war in Ukraine and climate change. In this era of increasingly connected crises, an overreliance on either international trade or domestic production leaves nations vulnerable to supply chain disruptions, with potentially devastating effects.
For example, farmers across eastern Canada continue to experience uncertain access to fertilizer and recognize that scarcity of this essential input is potentially a reality for years to come. Policies like the tariff on Russian fertilizer only contribute to higher prices for essential inputs, as producers already contend with historically high operating costs. There remains an acute need for relief from this financial hardship.
Global food insecurity requires a multi-faceted whole-of-government approach, supporting resilient food supply chains and maximizing food production. In my comments today, I'll touch on a few areas of critical importance in this regard.
First, on trade, at the 2021 United Nations Food Systems Summit, UN members agreed that the attainment of the SDGs will depend on fostering stable local food systems, supported by fair and rules-based trade. No international policy should create impediments to countries building their own agricultural infrastructure. The world needs strong rules-based trade that enables policy measures promoting stability of supply, such as safety nets, orderly marketing and supply management.
Canada's response to climate change is also a clear example of policies that have the potential to affect resilience and our capacity to produce food. Producers need policies that incent climate-resilient practices without constraining productivity. This requires collaboration between farmers and governments to leverage farm-level expertise. CFA continues to call for a working group of farmers, officials and technical experts to identify pragmatic climate change incentives that support continued productivity growth.
On infrastructure, physical and natural infrastructure is also central to our resilience in the face of climate change. Continued investment in the national trade corridors fund is essential to diversifying and strengthening our channels to market. CFA also supports the continued development of ecosystem services programming, such as the reverse auction program announced in budget 2021 for wetlands conservation and restoration. Recognizing farmers for their contributions to flood plain management and other public environmental goods is critical to the sector's long-term resilience.
On disaster responses and recovery, resilience also requires a coordinated approach to disaster response and the identification of measures that could mitigate and prevent future risks from occurring. CFA continues to call for collaborative post-disaster reviews as part of the AgriRecovery framework, bringing together key stakeholders after the initial disaster response to assess and identify best practices and needed changes, and to help design off-the-shelf programming responses for similar situations in the future.
Finally, with regard to labour and preservation of farm assets, maximizing Canadian food production requires access to labour and policies that preserve strategic agricultural assets. CFA is working closely with CAHRC and Food and Beverage Canada on an industry-led national workforce strategic plan to address the acute and systematic labour shortages that constrain our productivity. While industry-led, we look forward to engaging you in the coming months on the collective actions needed to tackle this chronic issue.
We must also work to ensure food security isn't sacrificed to conflicting interests. A prime example is a plot of Crown-owned farmland in Surrey, B.C., being put out for sale despite housing one of the most productive and climate-resilient horticultural operations serving the B.C. market. This may seem minor in the face of this global issue, but the loss of that land would be a permanent blow to food security in that region, demonstrating how policies across government can unknowingly add to existing food insecurity concerns.
In conclusion, global food insecurity is complex, with dramatic implications for political and economic stability around the world. We welcome this committee's commitment to explore Canada's role in responding to mounting global food insecurity. As you deliberate further on this topic, I would leave you with these four key areas where Canadian policies can have a direct and positive impact.
First is a strong international presence supporting rules-based trade that supports nations in promoting the stability of infrastructure and supply.
Second is a working group with farmers to ensure environmental policies support enhanced resilience and productivity.
Third is collaborative AgriRecovery reviews to mitigate and prevent future climate risks.
Last is a holistic approach to labour and the preservation of strategic productive assets in Canada.
I thank you for your time and welcome any questions you might have.
Liberal
The Chair Liberal Kody Blois
Thank you, Mr. Ross. I gave you a few extra seconds, but you can buy me a beer next time you see me. I'm just joking.
Mr. Lemaire, we'll go over to you for five minutes and we'll go from there.
Ron Lemaire President, Canadian Produce Marketing Association
Thank you very much, Mr. Chair and committee members.
On behalf of the Canadian Produce Marketing Association, which represents over 840 companies growing, packing, shipping and selling fresh fruit and vegetables domestically and globally and supports roughly 249,000 jobs across the country, I'm happy to present today on global food insecurity.
We all recognize that the topic of food insecurity is complex. Agriculture and agri-food play a key role in addressing solutions. The question we must ask is how agri-food can work across multiple jurisdictions and ministries, both domestically and globally, to ensure at-risk populations have the appropriate housing, employment, education and money to access food. Then there is the question of healthy food production and availability, and how agriculture can meet global challenges.
The pandemic is but one factor influencing global food insecurity; in many ways, it has further highlighted an already significant issue. Supply chains continue to be strained. Climate change has impacted our markets in Canada and globally. The war in Ukraine has added additional strain to an already fragile food system. As we know, war and other factors have led to a price increase in essential production inputs and commodities such as oil and associated fertilizer. This has directly resulted in price inflation, which has directly influenced food insecurity.
CPMA feels that food needs to be seen as essential and perishable food as a priority in all policy and programs, with consideration of fast lanes for both import and export models globally.
According to the Canadian Federation of Independent Business, nearly two-thirds of businesses said that a mandatory reduction of nitrogen-based fertilizer would decrease the profitability of their business and 42% said it would be challenging, as they have already reduced their nitrogen fertilizer use.
Instead of a nitrogen fertilizer reduction, given the difficult times that farmers are in, the CPMA suggests what Canadian researchers are encouraging farmers to do, which is to implement best practices to control or reduce nitrogen emissions. Some of these practices include conservation tillage, annual soil testing for nitrogen and rotating nitrogen-fixing crops.
The numbers don't lie. The Food and Agriculture Organization reported that an estimated 720 million to 811 million people in the world were food insecure in 2020. Similarly, in Canada, 2021 statistics show that 15.9% of households in the 10 provinces reported being food insecure. This is a grim reminder, but also an opportunity for Canada to drive change domestically and be a global force to address international needs.
As the only G7 country without a national school food program, we edge closer to the reality of investing in children's nutrition. The CPMA is a member of the Coalition for Healthy School Food, which is a non-partisan organization working to advance and support a national nutritious school food program, which would allow Canadian children to receive nutritious food at school using a cost-sharing model. By doing so, we would work towards achieving the United Nations' sustainable development goal number 2: ending hunger, achieving food security and improving nutrition.
Domestically, I feel there are two key areas of focus, which are community change and industry support. How do we enable social programs that enable Canadians to buy the food they need and enable programs that support agri-food production and innovation? Examples like the surplus food rescue program and the local food infrastructure fund had an impact, but the withdrawal of funds from these sources left many NGOs without the ability to be sustainable within a perishable food system. As a recipient of surplus food rescue program funds, I saw first-hand the invisible food network, which is 61,000 charities and non-profits that support our efforts to address food security. All rely on a complex system of donations, logistics and funding. Second Harvest has reported that with $25 million in funding last year, they had requests for over $84 million for food that they were trying to support, which shows a dramatic need in the communities across the country. I will commend Second Harvest, as 71% of the funds were distributed to BIPOC community networks.
Food security is complex and requires aligned policies and programs to support the ability to produce, access and pay for food. The Canadian government has an opportunity to strengthen our supply chain to meet the dietary needs of Canadians and the rest of the world.
I greatly appreciate this opportunity to speak to the committee and to answer any questions you may have.
Thank you.
Liberal
The Chair Liberal Kody Blois
Thank you very much, Mr. Lemaire, and we're going to do just that.
Colleagues, we only have about 25 minutes left. There might be some small room to extend our time, so just assume that you're only going to get six minutes per party. If I do have a little bit of room, I'll try to give a little bit extra to the Liberals and Conservatives.
Mr. Epp, we'll start with you.
Conservative
Dave Epp Conservative Chatham-Kent—Leamington, ON
Thank you to the witnesses. I'd like to spend six minutes with each of you.
I'll start with canola and Mr. Davison. There is the dynamic of the food versus biofuel debate with the expansion of facilities in the Regina area in the context of fertilizer emission target reductions. Can you comment?
Vice-President, Stakeholder and Industry Relations, Canola Council of Canada
Yes, I would say that the topic is increasingly framed as food versus fuel. I think it's increasingly becoming food and fuel as we have to deal with both food security and energy security as a result of recent geopolitical developments and other considerations.
Let me just say that as part of global efforts to address climate change, more and more countries are introducing renewable fuel mandates as part of their efforts to reduce greenhouse gas emissions. Certainly biofuels in the context of the transportation sector, which we know accounts for about 25% of total GHG emissions both globally and here in Canada, are a key driver for that, and biofuels are a proven and viable solution to decarbonize transportation fuels—
Conservative
Dave Epp Conservative Chatham-Kent—Leamington, ON
Thank you. I'm going to have to ask that you send in the innovation strategy. I just need to get a few more questions in. Thank you.
Mr. Ross, you touched on fertilizer accessibility. In eastern Canada, obviously we've been importing a lot. We've collected $37 million in fertilizer tariffs.
I have two questions. What do we need in order to use Canadian fertilizer nitrogen, particularly in eastern Canada? What should we do with the $37 million?
Executive Director, Canadian Federation of Agriculture
In terms of your second question, what I hear from eastern Canadian farmers is that these are very challenging times in terms of the operating costs they're experiencing and a sense that the money needs to be directed towards targeted financial relief for those impacted by the tariff itself.
When it comes to accessing nitrogen for subsequent years, I think the biggest need we have right now in Canadian agriculture is clarity and certainty in what the future holds so that people can plan accordingly for next year. Right now there's a bit of an absence of clarity around the policy landscape for the future, and there are concerns around the future availability and pricing of nitrogen. I think there's certainly a need for a longer-term strategic discussion here, but in the immediate term, we need clarity on what the future holds.
Conservative
Dave Epp Conservative Chatham-Kent—Leamington, ON
Thank you, Mr. Ross.
Mr. Lemaire, California, which is one of the major vegetable and produce producers, is short of water. What else can we be doing in Canada, particularly in our greenhouse industry? What else does that industry need for infrastructure in order to displace imports and become more food secure in our produce sector?
President, Canadian Produce Marketing Association
That's a great question.
The greenhouse industry has a huge opportunity, especially in areas like strawberries and even melons, which are now being tested and sold back to the U.S.
We need energy and access. We need to look at the carbon strategy to try to support the greenhouse industry more effectively, as well as have a strategy that can ensure we have the labour that's necessary to support efforts to expand. We're losing greenhouse business to other countries.
Conservative
Dave Epp Conservative Chatham-Kent—Leamington, ON
Thank you, Mr. Lemaire.
I'll concede to my colleague Mr. Lehoux.
Conservative
Richard Lehoux Conservative Beauce, QC
Thank you, Mr. Chair.
Mr. Ross, you talked about the labour shortage, among other things. Labour is a very important factor.
Can you give us some concrete examples?
My question is for both Mr. Ross and Mr. Lemaire.
