Thank you, Mr. Chair.
Good afternoon, Mr. Chair and committee members. My name is Catherine Filejski. I am both a licensed veterinarian and the current president and CEO of the Canadian Animal Health Institute, or the CAHI.
CAHI is the trade association that represents the developers, manufacturers and distributors of animal pharmaceuticals, biologics, feed additives, veterinary health products and animal pesticides. We are a national association serving as the trusted science-based voice of the Canadian animal health industry since our founding in 1968. Our full member companies are responsible for the sales of approximately 95% of Canada's animal health market.
Biosecurity plays a critical role in animal health management by preventing and controlling the spread of diseases. As a result, biosecurity preparedness is essential for the well-being of animals and Canadians alike. The availability of effective veterinary medicines, including vaccines, plays a key role in Canada's preparedness to deal with both foreign animal diseases and outbreaks of endemic diseases that have an impact on production.
The growing challenges of climate change, increased international trade and the emergence of new diseases are putting pressure on the Canadian animal health industry to safeguard the health of our flocks and herds, while still continuing to innovate and adapt to remain competitive in the global market.
The industry also faces many other challenges including its small size, representing just 10% of U.S. animal health sales and only 2.5% of the global animal health market. Given the substantially smaller size of our national flocks and herds, Canada is a lower-tier commercial market for veterinary medicines offering a lower return on investment than other jurisdictions.
A Canadian regulatory environment that is not adequately aligned with those of major animal health markets like the United States and the EU makes veterinary product development, introduction and maintenance in Canada increasingly difficult. When this lack of alignment is then paired with steep increases of up to 500% in regulatory fees for the licensing of veterinary pharmaceuticals, the result is both a loss of existing products from the market and a significant impediment to the entry of new innovative products into that market. We are already seeing the effects of this with a dramatic 40% decrease in the availability of licensed veterinary drugs on the Canadian market over the past five years.
COVID-19 highlighted for us the importance of drug and vaccine availability in Canada. Animal health, however, was out of the spotlight of direct pandemic response, and disruptions to international veterinary supply chains received little attention. Consequently, we have increased vulnerabilities in the system now, yet veterinary supply chain disruptions are consistently deemed to be a lower priority, despite the significant risks they pose to animal health, welfare and biosecurity.
Those vulnerabilities are at risk of being further exacerbated by other government policies such as those currently being developed to regulate the so-called forever chemicals—that is, per- and polyfluoroalkyl substances or PFAS. PFAS are used in a wide range of products and industries with active ingredients in drugs, both human and veterinary, accounting for about 5% of the total notified uses of PFAS since 1994.
In the animal health industry, PFAS are found not only in veterinary drugs but also in other medicines, medical equipment such as catheters and surgical devices, and personal protective equipment such as masks and gloves. They are also used in the production of pesticides and animal feed and are key components in manufacturing equipment, consumables, drug delivery devices and packaging.
Earlier this year, the federal government released a draft “state of PFAS” report for consultation, which set out the rationale for a class-wide ban on the use of all PFAS in Canada. A growing number of jurisdictions, including the EU and some states in the United States, are addressing or proposing to address PFAS broadly as a class. All those who have tackled that problem by implementing class-wide bans have also recognized the need to identify exemptions for essential or non-avoidable uses of PFAS, either at the outset of such initiatives or subsequent to the implementation of bans that proved to have unintended consequences. PFAS used in veterinary medicines need to be exempted as essential and/or unavoidable uses in any Canadian regulation going forward.
Canada's animal health industry plays a key role in biosecurity preparedness by providing the veterinary medicines that veterinarians and producers need to prevent, treat and control disease outbreaks. However, bringing products to market is just the first step, and the ability to maintain products on the market once they are registered here needs to be taken into consideration as the Canadian government looks to the future. If we are successfully going to prepare for and navigate emerging disease threats, ensuring the availability of veterinary medicines needs to become a government priority. We look forward to working with the federal government departments more closely in order to tackle the growing challenges that the animal health industry faces in Canada.
I thank you, Mr. Chair and members of the committee, for the opportunity to put the animal health industry's perspectives on biosecurity preparedness before you today.