Agriculture Committee on Jan. 27th, 2026

[Dave Epp, Conservative, Chatham-Kent—Leamington, ON]

That's excellent.

Also, I think we all agree that competition at all levels of the value chain also works for price competitiveness for the consumers as well as, in time, for efficiencies and profit.

With regard to interprovincial trade and the barriers around that, obviously there's the issue around slaughter capacity. I think we all agree that we're looking for more slaughter capacity to maintain more of a Canadian food sovereignty aspect. However, can you also talk about removing the barriers to interprovincial trade—which also would increase markets domestically—and the concerns around that when it comes to our export markets, be those China, Korea or other areas?

[René Roy]

Go ahead, Stephen.

[Stephen Heckbert]

Thank you for that, sir.

The challenge for us with interprovincial trade has really been solved with respect to federal processing plants. Ninety-four per cent of the production in Canada goes to federal processing plants. They're able to trade between provinces as it is. In terms of interprovincial trade barriers in meat processing, we don't have the kinds of barriers that you would have in other markets. This is largely because almost all of our production in pork is designed for an export market. We have grown up sending more of our production into these federally inspected plants. From our perspective, that really has eliminated some of the interprovincial barriers, even before the recent move for that.

Where we do still have some concerns is with respect to the wide discrepancy in standards between various provincial plants in various jurisdictions. Some provincial plants, for example, are mobile plants; some of them are multispecies. From a disease-vector perspective, we really want to make sure that we get the kinds of quality standards that the CFIA has implemented in the federally inspected system, so that's really what we've been committed to.

[Dave Epp, Conservative, Chatham-Kent—Leamington, ON]

Thank you.

I have just a quick follow-up on that.

What I hear you saying is that if there was consistency in provincial standards, even if they perhaps didn't meet the federal, that would not be a concern from the pork sector as long as that meat stayed within Canada.

[The Chair, Liberal, Michael Coteau]

Give a really short answer, please.

[Louis-Philippe Roy]

We could accept that. We agree on that, but we also don't want to destabilize our producers on the ground. Each province has its own marketing system. In Quebec, Les Éleveurs de porcs du Québec market hogs. Quebec producers have to use Quebec slaughterhouses. So if large volumes were to come in from Ontario, it would destabilize the sector. That could also be the case for other provinces.

[The Chair, Liberal, Michael Coteau]

Thank you very much.

Thank you, Mr. Epp.

Next, we'll go to the Liberals for five minutes.

MP Dandurand.

[Marianne Dandurand, Liberal, Compton—Stanstead, QC]

Thank you very much, Mr. Chair.

I'd like to thank all the witnesses for being here today.

I would like to join my colleagues in commending the work of Mr. Perron, who has been here for a long time and is truly an example to follow.

I come from a region where there are many pork producers, so I'm very sensitive to the cause of pork and beef producers. However, there is very little processing in my region, which means that I am less familiar with the processing sector in general, apart from the fact that there seems to be a shortage of processors to meet production needs.

Mr. Roy, I understand the challenges you face, particularly when it comes to the reference price set by the U.S. market. I understand the value of having a price set by the Canadian market. Given that logic in this context, what's the obstacle preventing a Canadian reference price from being set in our industry?

[Louis-Philippe Roy]

It's the trust of our processors to give us that information and be strategic.

We understand that there are business relationships both here in Canada and internationally. Requesting this information leads to a flat refusal. It's impossible to obtain. I'm the current chair, but the people who were chairs before me tried to get that information, and it was almost impossible. We have to go to the United States to see what's happening on the ground and to get information. We have to talk to American producers and American processors, because there isn't even any transparency in our discussions between buyers and producers.

[René Roy]

When it was first introduced in the United States, processors in particular were very resistant. Since then, this system has become an essential service. Even during a suspension of public services, it continues to operate, not only because producers demand it, but also because processors require it. As a result, it has become an industry tool. There was resistance, but once it was implemented, everyone agreed that it had to continue. So why would it be any different in Canada?

[Marianne Dandurand, Liberal, Compton—Stanstead, QC]

I understand that the missing piece of the puzzle is information from processors. What information are you looking to obtain from them, exactly? I imagine it's to help you set the price of your own product when you sell it to processors, isn't it?

[Louis-Philippe Roy]

I won’t go into detail, but the American reference price is set by reconstructing the various primary cuts of pork. This is called the “cutout”. This is the information we are seeking to receive. It is important to understand that farmers are not seeking to be the ones who receive the information. Statistics Canada, for example, could be the agency that manages this information. All Canadian processors could send their technical data to Statistics Canada, and then the information could be shared.

In short, it is mainly about the value of the reconstituted primary cuts. That is what the United States uses.

[Marianne Dandurand, Liberal, Compton—Stanstead, QC]

Has such a system ever existed in Canada?

[Louis-Philippe Roy]

There was nothing in the pork sector. In the beef sector, there may have been something similar, but it was not as extensive. I am not a beef producer, so it is difficult for me to comment on this.

[Marianne Dandurand, Liberal, Compton—Stanstead, QC]

I understand that need.

What role do you think the Government of Canada should play in such a pricing system?

[René Roy]

In the United States, the government has mainly been involved in standardization. Technically, there is still work to be done, but some of the work has already been done. It has also acted as an arbitrator to ensure that the system is recognized and standardized. This is therefore the role that the government should play.

With the digital tools we have today, this does not necessarily require large investments. First, there needs to be the political will to establish it. Then, we will be able to use it without major investments.

[Marianne Dandurand, Liberal, Compton—Stanstead, QC]

I understand your argument. I will now ask you a direct question: In your opinion, what are the consequences of not responding to your request?

[René Roy]

We will simply hit a brick wall. If we don’t have a system that is ready to absorb a geopolitical or health shock, we will need this tool, and we won’t have it. So we won’t be able to react quickly enough. This will create problems and even disasters like the ones producers have already experienced.

[The Chair, Liberal, Michael Coteau]

Thank you so much.

Mr. Lemire, you have two and a half minutes, please.

[Sébastien Lemire, Bloc, Abitibi—Témiscamingue, QC]

Thank you, Mr. Chair.

Mr. Louis‑Philippe Roy, in Quebec, you negotiate your prices through a single agency with tariff plans, often long-term, for slaughterhouses. How is the price assessed in these agreements?

Based on American prices, how does the fluctuation of the U.S. dollar affect your negotiations?

[Louis-Philippe Roy]

As I said earlier, it is this reference price that is used. The value of the currency has a significant effect on the negotiation of our agreements, but we hardly ever go into those details. It’s really a matter of knowing the value of pork on the American market in order to have arguments, because the reference prices we use only include prices used in transactions between Canada, the United States and Mexico. For anything intended for export, we don’t use this data.

Greater transparency in this regard could help us. We know that Canada plays an important role in the Japanese market, for example, but we are not going to get the same value that processors will get when they sell their products.

In short, we take reference prices, but we stick to the basics in our discussions about currency fluctuations and what is going to happen, because we don’t have that information. We don’t see the effect of currency, because we don’t see those figures, so we can’t use them to negotiate or even discuss them.

[Sébastien Lemire, Bloc, Abitibi—Témiscamingue, QC]

Obviously, I am concerned about the accessibility of local food for Quebeckers. If prices were more attractive on the American side, would that lead to an increase in production and a disengagement from the local market, since there would be no financial advantage in supplying Quebeckers?

[Louis-Philippe Roy]

Historically, it was much easier for processors to sell their products outside Canada. It was more profitable for them to fill containers and ship them by boat. They didn’t want to touch the Canadian market. What we’ve experienced in recent years has prompted some reflection on this issue. Some processors are more active in the local market, but they are the ones who determine whether or not it is profitable. It’s their personal choice, and we can’t really interfere with their sales.

[Sébastien Lemire, Bloc, Abitibi—Témiscamingue, QC]

Thank you.

Here is my last question: Would an investment strategy for the creation of small local abattoirs aimed at supplying local markets and short supply chains be a winning solution for Quebec pork producers?

[Louis-Philippe Roy]

There is no doubt that this would be a winning solution. More and more producers want to run smaller farms and get closer to consumers. So, yes, it would benefit pig producers to create more efficient slaughterhouses, because they still need to be efficient.