Mr. Chair, honourable members of the committee, thank you for giving me the opportunity to appear before you today.
My name is Indira Moudi. I am the president and chief executive officer of Viandes Lafrance, an independent, federally inspected slaughterhouse and meat processor, not vertically integrated into a farm, and based in Quebec. We employ approximately 40 people and work with close to 40 family farms across Quebec.
Founded in 1929, our company has weathered wars, recessions and major crises, including the COVID period, during which most large slaughterhouses and protein processors in North America shut down. Meanwhile, our local facilities remained operational 365 days a year—ensuring continuity of regional food supply and contributing to food sovereignty.
Today, what weakens small and medium-sized enterprises, SMEs, like ours is not a one-off shock, but a structural imbalance in the Canadian beef system, which has led, between 2019 and today, to a decline of more than 35% in the number of cattle slaughtered at our facility. For details, see the brief I submitted to the committee.
As we know, in the beef sector, 85% of processing capacity is controlled by two major companies, Cargill and JBS. The remaining 15% is shared among eight to nine independent, federally inspected slaughterhouses, including ours.
In the context of your study on reference prices, my message is straightforward: the reference price, as it is currently used, does not reflect the economic realities of independent Canadian processors. Rather, it has become a benchmark that effectively excludes SMEs, even when they are compliant, efficient and locally rooted.
For example, three months ago, we were approached by a major retail banner seeking to offer Quebec beef, identified under the Aliments du Québec designation, across nearly 200 stores. From a technical standpoint, we met all requirements: federal inspection, quality standards, traceability and production capacity. Yet we were unable to submit a bid. Why?
First, our pricing was benchmarked against Canadian beef processed in the United States, within cost structures and volumes that bear no resemblance to those of an independent Canadian SME.
Second, supplying such volumes requires significant working capital at a time when cattle prices are at historic highs—a pressure further amplified by reference prices that fail to account for the realities of Canadian processing.
This case reflects a well-documented reality, notably explored in the Front de bœuf podcast, which I strongly encourage committee members to consider as part of this study and which I reference in the brief submitted in support of my testimony.
The conclusion is clear: Demand for local product exists, retailers are ready, farms have the animals and slaughterhouses have the capacity—yet the current economic mechanics prevent local supply from meeting the market.
Over the long term, Canada's food security and sovereignty, and the resilience of its beef system depend on diversification; support for producers and independent processors; and a coordinated, concerted effort among public and private stakeholders at both the federal and provincial levels.
In this context, a Canadian official price publication based on actual transactions would contribute to transparency that is better aligned with the realities of Canadian beef processing. It is against this backdrop that, in collaboration with the eight to nine independent federally inspected beef processors, and with the support of the Canadian Meat Council and Agriculture and Agri-Food Canada—before whom we have presented these issues—we have submitted a structured, collective solution, which I have also attached.
The proposed solution is built around a targeted safety net, triggered when margins fall below a historical threshold, along with temporary liquidity-support mechanisms, to stabilize independent processors without distorting the market. This would help protect employment, national capacity and food security.
I will conclude by saying that Canada must ask itself three fundamental questions.
First, do current rules genuinely allow independent slaughterhouses to play their strategic role?
Second, is economic risk fairly shared across the supply chain or concentrated on its most vulnerable links?
Third, do we want our beef processing capacity to rest in the hands of a few dominant players or on a local infrastructure network capable of absorbing shocks?
Thank you for your attention. I would be pleased to answer your questions.