Ladies and gentlemen, thank you for inviting us to appear before you and for the time you are giving us.
For some months now, fruit and vegetable growers in Europe and Quebec have obviously expressed despair at a challenging economic and societal climate. Last summer, 60% of Quebec farmland was affected by excess water, which resulted in estimated lost sales of at least $143 million. Climate vagaries have also resulted in additional costs of approximately $7.3 million.
These few numbers illustrate the economic pressure that our businesses are now facing. Every season, fruit and vegetable entrepreneurs have to invest millions of dollars in their farms if they are large producers, and tens—or even hundreds—of thousands of dollars if they are small producers, before they can make a single dollar. To finance their operations, farmers are, now more than ever, forced to put their land up as collateral in order to get financing. This cannot go on for much longer.
In the specific case of Ireland, a new and troubling trend began in the summer of 2023. Many vegetables, such as cauliflower, carrots and broccoli, temporarily disappeared from grocers' shelves. One prominent economist, Jim Power, outlined his analysis to industry leaders, noting that the number of Irish field vegetable producers had decreased from 377 in 1999 to 166 in 2014, a 56% decline. And that number has fallen even further since then.
In light of this observation, a more equitable sharing of risk among supply chain partners has become inevitable. For several years now, for example, the European Union has been considering measures to improve protection for farmers in the supply chain, and an act has been passed to prohibit 16 commercial practices.
In the circumstances, we welcome the efforts that Mr. Champagne, the Minister of Innovation, Science and Industry, is making to identify solutions for price volatility. However, the consequences of those solutions must not undermine the economic health of fruit and vegetable producers. In Ireland, economist Jim Power has observed that rising imports and the increasing concentration of a small number of very powerful retailers have had a significant negative impact. The growing market share of the discount chains has had a significant effect on the prices that fruit and vegetable producers have received for their products. Consequently, again according to Mr. Power, many farmers have been forced to shut down operations.
A safety net must be put in place to protect small and medium-sized businesses from the giant food chains.