Agriculture Committee on Feb. 10th, 2022

[The Chair, Liberal, Kody Blois]

We'll start the meeting. We call this to order.

Welcome to the fourth meeting of the Standing Committee on Agriculture and Agri-Food.

Today's meeting is taking place in a hybrid format, pursuant to the House order of November 25, 2021. The proceedings will be made available via the House of Commons website. So you are aware, the webcast will always show the person speaking, rather than the entirety of the committee. Screenshots or taking photos of your screen is not permitted.

Colleagues, I'll just quickly outline some of the procedures before we get started.

Of course, if you want to speak, the clerk and I will be liaising between the groups in hybrid mode. Those on Zoom will be raising your hand, and those in the room will perhaps be signalling to the clerk that you wish to speak.

Of course, we are still abiding by the health protocols that have been set by the Board of Internal Economy for those who are in the room. I know the clerk will work with me to ensure that those are enforced.

This is a reminder for those who are online to use their House of Commons certified microphone for the benefit of our translators.

This is another reminder that all comments by members and witnesses should be addressed through the chair.

First of all, members, I would like to ask the committee to consider the adoption of the budget for the study of the agriculture and agri-food supply chain. You have all received this by email. It covers costs related to the meeting moving forward.

This is very procedural, but do I have agreement for us to adopt that budget?

[Some hon. members]

Agreed.

[The Chair, Liberal, Kody Blois]

Seeing consensus, Madam Clerk, I think we're good.

Colleagues, I would like to move forward. For the benefit of our witnesses here, I have a few comments.

For interpretation, you have the ability to toggle between English and French. When you're not speaking, please make sure that your microphone is on mute.

Pursuant to Standing Order 108(2) and the motion adopted by the committee on Monday, January 31, the committee is commencing its study of the agriculture and agri-food supply chain.

I would now like to welcome our witnesses for our first panel. With us today by video conference, from the Department of Agriculture and Agri-Food, we have Tom Rosser, who is the assistant deputy minister for market and industry services branch; and Justine Akman, who is director general for the retail and consumer task team.

Up to five minutes will be given for opening remarks, after which we will proceed to rounds of questioning.

We go over to you for five minutes.

[Tom Rosser, Assistant Deputy Minister, Market and Industry Services Branch, Department of Agriculture and Agri-Food]

Thank you, Mr. Chair.

Let me just begin by saying that it's always a pleasure to have the opportunity to appear before this committee and try to contribute to the work that you do.

As you know, Mr. Chair, I am pleased today to be joined by a colleague from the department, Justine Akman.

I thank the committee for undertaking this study. It is an important step to supporting the long–term stability and resiliency of Canada's agriculture and agri-food supply chain.

As this committee is aware, the agriculture and agri-food supply chain touches all Canadians and communities, including a vast array of stakeholders from producers, to processors, food retailers and wholesalers, consumers and all of the input and service suppliers that support them.

Despite significant disruptions and challenges caused by both the pandemic and extreme weather events like the B.C. floods over the past two years, Canada's food supply chain has demonstrated that it is highly adaptable and resilient.

It continues to provide Canadians with reliable access to food while maintaining healthy economic growth, despite these significant challenges. For example, early in the pandemic, primary producers quickly modified their practices to meet new health and safety directives on farm. Food retailers and food service pivoted with regard to evolving demands from consumers.

Having confidence that our food supply chain is reliable and can contribute to deliver is critical for international and local consumers.

With this in mind, since the beginning of the pandemic, Agriculture and Agri-Food Canada has been working diligently to ensure that Canada's food supply chain functions properly for all Canadians.

We have established the Food Sector Network, co-chaired by AAFC and industry, to ensure that we can collectively monitor challenges experienced by the sector in real time and have better foresight into future emergencies.

In part due to this dialogue, early on in the pandemic a number of new programs were launched by AAFC, including the emergency food security fund and the surplus food rescue program.

More recently, $228 million was announced for the Canada-B.C. food recovery program for food security, which will be delivered by the province, and leverages the federal government's AgriRecovery framework and disaster financial assistance arrangement.

In addition to AgriRecovery, producers have access to a suite of business risk management programs to help them manage significant risks that threaten the viability of their farms, and they are encouraged to sign up for the AgriStability program, which can help farmers cover severe drops in farm income.

Moving forward, there is also an opportunity to ensure that key supply chain challenges are reflected in the Canadian agricultural partnership as we work with provinces on the next framework agreement, but there's no doubt that supply chain resiliency will require a coordinated whole-of-government approach. For this reason, it has been identified as a priority in the mandate letters of multiple ministers and included in commitments to strengthen supply chains.

AAFC's mandate provides for the development of a sector-specific agricultural labour strategy to address persistent and chronic labour shortages in farming and food processing in the short and long term. This strategy will be developed over the next year with the support from the Minister of Employment, Workforce Development and Disability Inclusion, and in partnership with provinces and territories, employers, unions and workers.

As part of our collective efforts, AAFC is also committed to supporting the Minister of Transport in leveraging investments from the national trade corridors fund to develop a national supply chain strategy, which will aim to address key transportation bottlenecks and improve system-wide efficiency and fluidity through increased collaboration.

While we discuss the performance of our supply chains, it is important to remember that we operate in a global context. Throughout the pandemic, there has been growing pressure on supply chains, particularly for containers, leading to significant congestion and increasing costs.

Severe disruptions throughout the COVID-19 pandemic have also driven the United States to take a number of actions to explore and build more resilient supply chains. The U.S. Department of Agriculture recently completed an assessment of their supply chain, including for agriculture commodities and food products, and will release the report later this month.

Canada can look to leverage this work to bolster supply chain resiliency in a coordinated and complementary way with our U.S. counterparts.

In summary, the recent events related to the pandemic and B.C. floods have demonstrated the resilience of Canada's food chain, but have also shown us areas that will need to be supported and strengthened as we work at our next steps to improve its resilience.

Thank you again, Mr. Chair.

Ms. Akman and I will be happy to take your questions.

[The Chair, Liberal, Kody Blois]

Thank you very much, Mr. Rosser.

We will now move to questions.

Mr. Barlow, go ahead for six minutes.

[John Barlow, Conservative, Foothills, AB]

Thank you very much, Mr. Chair, and thanks Mr. Rosser, for making time. It's always good to see you and get your insight.

Certainly, as we go into this study about the supply chain, I think we all would agree that your supply chain is only as dependable and as strong as its weakest link. Right now, we certainly have a number of those links that are showing cracks. I guess I would also argue that now is not the time to be adding additional irritants to that supply chain.

The one topic I wanted to start off with today, Mr. Rosser, is the cattle industry. Certainly we are seeing some issues with transportation of cattle and feed. The cattle industry is also asking for the enforcement, however, of what I would argue are very unscientific new animal transport regulations to be implemented by the government.... We're seeing that those are supposed to be coming into effect on February 20.

They are asking for that deadline to be pushed back, as these new rules may cause more issues with animal welfare, and certainly with transportation issues. Is there any discussion taking into account the current situation and status of our supply chain to push that deadline further down the road until we have more time to ensure that the resources and infrastructures are in place to meet those requirements?

[Tom Rosser]

I would concur completely with the member that we are seeing a period of heightened stress from a whole variety of sources on our supply chains.

I understand that the committee will be hearing shortly from representatives of the cattle sector, who can offer their perspectives to you first-hand. We've been in active dialogue with them on some of their concerns around feed. I know they've made statements regarding issues at the Canada-U.S. border and, particularly, the Coutts crossing. We have been in active dialogue with them for some time on the Health of Animals Regulations, to which the member referred. My recollection is that the cattle association is undertaking some research to help support that dialogue.

The regulations are the responsibility of the Food Inspection Agency, so I'm reticent to comment in detail. However, the Food Inspection Agency, throughout COVID, has looked for opportunities to show regulatory flexibility, where it can, to alleviate supply chain shortages.

We are in active dialogue with the cattle sector.

[John Barlow, Conservative, Foothills, AB]

Would it not make sense to you—and you touched on it—that the cattle industry is trying to collect some research to show that this decision was not based on any sound science?

Don't you think it makes more sense for Ag Canada to push off those deadlines or the new regulation coming into force until that research is done, to ensure that we have all the best information before such a decision is made?

[Tom Rosser]

Again, the lead for that particular regulation is the Food Inspection Agency. We and they are in active dialogue with the cattle sector to try to alleviate concerns. As I said, they have where they can—

[John Barlow, Conservative, Foothills, AB]

Okay. That's good. I'll bring that up with the CFIA in the future.

There are a number of stakeholders, more than a dozen, including Food and Beverage Canada and the Meat Council, that presented Ag Canada with a number of recommendations and potential resolutions to address what has become a critical labour issue that is impacting our supply chain, as well, but they have not heard anything back from Ag Canada on their recommendations. Can you give me a quick update?

You mentioned that there's going to be a labour strategy worked on over the next year. We're in a crisis now. We're looking for some quick, potential solutions that may get us through this crisis right now.

Is there something on the very near horizon? What is the status of those recommendations that were presented to you?

[Tom Rosser]

There's no question that labour is a long-standing issue for agriculture and agri-food stakeholders.

There's been an increasing urgency to the dialogue. Food and Beverage Canada and many of the member companies have been in dialogue with departmental officials and with the minister, as well, in recent weeks about some of their ideas, for both the short and the long term, to rectify the situation.

This committee addressed the labour issue in some of the recommendations from its report from last June, if I remember correctly. As the member noted, the minister is mandated to create a labour strategy. We welcome input from this committee and stakeholders on that.

I would note, as well, the announcement from last month about lifting the cap on the use of temporary foreign workers by a facility to 20% in Quebec. There have been some nearer-term measures. We're very open to ideas, both short- and longer-term, and more active dialogue around that.

[John Barlow, Conservative, Foothills, AB]

Thanks, Mr. Rosser.

I have only one minute left. I have one question I wanted to get to you.

I'm really concerned by the fact that the minister eliminated the value chain round tables, which would have been a great resource, considering the current situation we're in. They've been replaced by these “sector engagement tables”.

Is there a sector engagement table that is specifically addressing the supply chain issues within Agriculture and Agri-Food? Can you provide me with a list of some of the results that those engagement tables have achieved through their consultation with stakeholders, specifically to supply chain issues?

[The Chair, Liberal, Kody Blois]

You have 20 seconds, Mr. Rosser, unfortunately.

[Tom Rosser]

I'd love to turn it to Justine, but in the interest of time, I'll say that in addition to the sector engagement tables, we've created regular stakeholder outreach calls as an emergency response to both COVID and the B.C. floods. Beyond the engagement tables, particularly in response to emergencies, we have other mechanisms we use to try to consult regularly with stakeholders.

[The Chair, Liberal, Kody Blois]

Thank you, Mr. Rosser.

We will go to Mrs. Valdez for six minutes. It's over to you.

[Rechie Valdez, Liberal, Mississauga—Streetsville, ON]

Good afternoon, everyone.

Thank you to the witnesses for attending and answering our questions.

This question is for Mr. Rosser.

You described the AAFC funds or programs. Can you provide some additional details as to how these funds have assisted with the global supply chain disruptions?

[Tom Rosser]

Perhaps I'll invite Justine to answer, but just top of mind, last week Minister Bibeau participated in the supply chain summit that was hosted by the transport minister. There has been new funding for the national trade corridors fund, including a $50-million tranche announced last week. Those monies have helped address supply chain bottlenecks such as some around the Port of Vancouver.

In terms of our departmental program, we've had things related to food security, improving workplace safety in both primary agriculture and agri-food, the food security fund's surplus food rescue food program, and I'm probably forgetting some. I'd invite Justine to add, if time allows.

[Justine Akman, Director General, Retail and Consumer Task Team, Department of Agriculture and Agri-Food]

Hello, chair and committee. I'm very happy to join you for the first time in my new capacity.

I might add that my new title has been changed very recently to director general of supply chains, so it just sort of emphasizes the importance of supply chains in our department and taking a very serious look at these issues.

Just to add to what Tom said, the way we think about these issues is that there are urgencies, as you're all well aware, but there's also looking at the issues more medium and long term. Some of the issues are very long term, protracted issues, including temporary foreign workers.

Just to add a couple of things, early on in the pandemic, there was a $330-million emergency food security fund, the $50-million surplus food rescue program, and then in budget 2021, some of these programs were topped up: $140 million to the emergency food security fund and the local food infrastructure fund as well as the $57-million fund for temporary foreign workers and the need to quarantine.

There have been very different responses all along the way during the pandemic, and now, as Tom mentioned, with the supply chain summit hosted by the transport minister recently, our minister participated very actively. There will be follow-up meetings as well to engage stakeholders on solutions more into the medium and long term.

Thank you.

[Rechie Valdez, Liberal, Mississauga—Streetsville, ON]

Thank you so much.

The Canadian supply chain has undergone many resiliency tests in the past few years, in large part due to global supply chain issues and disruptive weather. How has the agriculture sector performed in the face of these challenges? This question is for either of you.

[Tom Rosser]

I can try to answer that one, Mr. Chair. I think overall one can always draw lessons from episodes of duress, and that's exactly what we are trying to do. I would say that the system has performed very well, that it has continued to perform its most fundamental task of making sure that food is available to Canadians continuously, and it has been able to do that beyond that and despite some of the extraordinary pressures associated, not just with COVID but with the droughts that we saw in western Canada, the extreme heat events and, of course, the flooding in British Columbia late last year.

Despite those, 2020 was a record year for farm incomes. We've seen important new investments in the agri-food sector in different parts of the country over the course of the pandemic. We've seen a lot of positive signs for longer-term economic growth, despite the many supply chain challenges the pandemic has posed.

[Rechie Valdez, Liberal, Mississauga—Streetsville, ON]

Thanks for that.

The supply of agri-foods is also influenced by food waste across the supply chain. What is the department doing to reduce that food waste?

[Tom Rosser]

Certainly from an environmental and economic standpoint, food waste is a big concern. Estimates vary, but it's somewhere, I think, around 30% of food produced in this country, and it's not unique to Canada. I think it's an issue worldwide, food being lost or wasted. Reducing that presents an important environmental opportunity as well as an economic one.

We have launched a food waste reduction challenge to try to support innovation in food waste reduction. When you look at it, food waste occurs throughout the value chain from the farm to the processing facility to the retail sector and, of course, to consumers' homes. We're interested in solutions. There is all kinds of innovation going on at the community level across the country to try to help reduce it, and we have this program, too, that is intended to try to help some of the most innovative and creative ideas we can find to experiment with and hopefully replicate and enlarge.

[Rechie Valdez, Liberal, Mississauga—Streetsville, ON]

Thank you for that.

I hope I have enough time for this question, Chair.

Since launching the national trade corridors fund in 2017, can you describe what changes since COVID began have been made to that fund to really assist with Canada's supply chain?

[The Chair, Liberal, Kody Blois]

Mr. Rosser, we're going to have to table that one for the next round, because, Ms. Valdez, unfortunately we're out of time.

Thank you.

Mr. Perron, the floor is yours for six minutes.

[Yves Perron, Bloc, Berthier—Maskinongé, QC]

Good afternoon, everyone.

I thank the witnesses, Mr. Rosser and Ms. Akman, for joining us.

As the study on the supply chain is extremely broad, we have tried to decide which aspects we wanted to go explore further. One of the things we are hearing people talk about the most on the ground is the severe labour shortage.

Every time we meet with stakeholders from the food processing sector, they tell us that up to 25% of their positions are vacant. They have submitted concrete proposals to us, one of which concerns an emergency plan for the temporary foreign worker program.

Have you seen that plan? Are you seriously considering those kinds of options?