Agriculture Committee on Feb. 3rd, 2026

[The Chair, Liberal, Michael Coteau]

Thank you very much.

We'll go to the Conservatives for six minutes.

We'll start off with Mr. Gourde.

[Jacques Gourde, Conservative, Lévis—Lotbinière, QC]

Thank you very much, Mr. Chair.

Mr. Boucher, the pork and beef industry is currently very integrated with that of the United States.

Can you tell me about the situation with respect to beef? This situation worries us a lot, because the price has risen significantly owing to the lack of supply.

[The Chair, Liberal, Michael Coteau]

There's no translation. We'll just hold for a second, sir.

Okay, go ahead.

[Jacques Gourde, Conservative, Lévis—Lotbinière, QC]

You know that the situation is very tight with respect to the beef supply. Can you tell us a bit about the situation?

[Donald Boucher]

Thank you very much for the question.

Indeed, there's a dynamic within the North American beef market, where the traditional two-to-three-year beef price cycle has turned into a seven-year cycle.

Since the COVID‑19 pandemic, owing to the increase in input prices and certain diseases in animals in Mexico, there's been a change in the flow of animals coming into the country. The import bans on animals from Mexico to the United States have also caused a shift in trends with respect to animals crossing the border between Canada and the United States.

As a result, the beef price cycle we're seeing deviates from what had traditionally been observed in terms of duration. This certainly puts a strain on Canadian players.

[Jacques Gourde, Conservative, Lévis—Lotbinière, QC]

Can you do the same thing, but for pork?

[Donald Boucher]

For pork, the dynamic is one where export markets also play a very large role, since Canada is a bit different. The industries are integrated, but Canada is in a slightly different situation than the United States. The reason is that we export about 70% of our livestock, mostly to the United States, while the United States has a higher domestic consumption.

Given the various free trade agreements, we see that the pork industry is currently experiencing a period where prices are good, but it faces the same pressures with respect to input costs. Consolidation within the pork industry also plays a role.

[Jacques Gourde, Conservative, Lévis—Lotbinière, QC]

The pork processing industry in Canada is really well structured. There are more slaughterhouses. Does that give the pork sector an advantage over the beef industry, given that we unfortunately send a lot of Canadian cattle to the United States for slaughter?

[Donald Boucher]

Yes, there are a greater number of players in the pork processing industry in Canada, but there's still a dynamic where larger players may have a more significant impact. In that respect, it's somewhat similar between Canada and the United States.

However, the integration rate is increasing in the pork industry. I believe we've reached an integration rate of 45% in the Canadian pork industry. Over time, our processors have positioned themselves to better take advantage of supply chains and acquire more property in terms of the animals processed at their facilities.

[Jacques Gourde, Conservative, Lévis—Lotbinière, QC]

Let's return to reference prices in supply chains.

Could this benefit producers just as much as the industry and consumers?

Will the mechanism benefit someone, or will everyone come out ahead overall?

[Donald Boucher]

Reference prices and price transparency would certainly increase confidence in supply chains.

However, in terms of the price paid by the consumer, the link may not be as direct. There are several factors that influence the price paid at the grocery store, be it negotiated prices, transportation costs, exchange rates, trade policies or the regulatory burden.

Increased transparency and reference prices could certainly help enhance consistency and coordination within the supply chain.

[Jacques Gourde, Conservative, Lévis—Lotbinière, QC]

We're not talking about chicken because it's under supply management, but supply management has almost solved all the problems of establishing a price for the producer, the processor and at the grocery store. It seems to be a given.

In Canada, we're in a position where we have to export a lot of pork and beef. It should therefore be more complicated to establish a reference price because, essentially, the reference will be the export selling price.

[Donald Boucher]

The report commissioned by the Canadian Pork Council in 2019 indeed acknowledged that complexity. It was even suggested that Canada should have several reference prices, as opposed to one, given that industries, markets and export markets are different in Quebec, in Ontario and in the Prairies.

It was proposed that prices be established on a regional basis. Ideally, then, a Canadian reference price should take into account that complexity and the fact that the industry is not uniform from one region to another.

[Jacques Gourde, Conservative, Lévis—Lotbinière, QC]

There is strong global demand for protein, be it beef or pork.

Canada could benefit economically, but what direction should it take?

[The Chair, Liberal, Michael Coteau]

Give a quick answer, please.

[Donald Boucher]

Thank you for the question.

As I mentioned in my remarks, there's indeed discussion within the industry to find a way to achieve a more competitive price that reflects Canadian realities. That could be a way to achieve diversity. I believe that sector and market diversity is very important.

[Jacques Gourde, Conservative, Lévis—Lotbinière, QC]

Thank you, Mr. Boucher.

[The Chair, Liberal, Michael Coteau]

Thank you so much.

MP Harrison, you have six minutes.

[Emma Harrison, Liberal, Peterborough, ON]

Thank you so much.

In the first hour, we heard from small and medium producers about the constraints they're under, their need for a safety net and the critical role they play in our domestic food security. They brought up AgriStability and the role that plays for our producers, but how it ends at producers and how they, too, need a safety net to protect our domestic supply chain.

What role do you see the government could play in the short or long term to help alleviate the risk they are seeing?

[Donald Boucher]

We have been hearing from and meeting with the meat industry, including the small and medium-sized abattoirs as well, and we understand the reality they are facing, as I was mentioning, with the price cycle that is modified these days from the usual two- to three-year standard. The request was made—and we took good note of that request—for a safety net for those companies. We definitely took good note and are currently looking at the situation and the difficulties they are facing.

For us, a vibrant industry is composed of players of multiple sizes—big packers and small and medium-sized processors—to go into niche markets to be able to serve regional and local production.

In terms of the best way, we are exploring different options. We've been in communication, for instance, with Farm Credit Canada and looking at the programs and how best they could help those players make sure that we continue to have this diversity of offering for livestock produced in Canada.

[Emma Harrison, Liberal, Peterborough, ON]

Thank you.

To Ms. Allan, I don't have a question specifically for the CFIA when it comes to beef reference pricing, because I'm not exactly sure what role the CFIA would play in any adjustment to how our pricing system works.

I will take this opportunity to ask you this. After meeting with the Peterborough County Cattlemen's Association, I learned that one of the struggles they are finding as small producers is the lack of transparency when their cattle leaves the farm and ends up at the processing facilities. When there is condemnation of an animal, they feel very frustrated by the lack of transparency they're experiencing and the substantial financial loss they experience.

[Diane Allan]

I don't believe that we play in that particular frame, but I will take that back. I'm not an expert as to what that communication is between the abattoir or the slaughter facility and the individual who provided that particular livestock.

Let me get back to the committee on that, if that's agreeable. Thank you.

[Emma Harrison, Liberal, Peterborough, ON]

Just to be clear, Ms. Allan, does the CFIA play any role when it comes to beef reference pricing?

[Diane Allan]

Unfortunately, no, we do not play any role in the beef pricing or the marketing of hogs and cattle.

Thank you.

[Emma Harrison, Liberal, Peterborough, ON]

I will go back to Mr. Boucher.

We've heard a lot about the struggles producers are facing when it comes to many different aspects of being a producer in Canada, such as climate change and now beef reference pricing and the free flow of cattle back and forth across the border.

What role does the government play in pricing for our producers in Canada when it comes to our domestic supply chain?