Agriculture Committee on Sept. 22nd, 2025

[Tom Rosser]

We have representatives in embassies and consulates around the world engaging in a variety of markets. I know that Minister MacDonald travelled to Asia over the summer, visiting Indonesia, Singapore and the Philippines. At different levels, we are engaging in target markets around the world on a daily basis.

[The Chair, Liberal, Michael Coteau]

Mr. Perron, you have six minutes.

[Yves Perron, Bloc, Berthier—Maskinongé, QC]

Thank you very much, Mr. Chair.

Thank you to officials from the various departments who are giving us their time. We appreciate it, especially since they didn't have a lot of time to prepare.

People working in the canola sector will be able to tell us more precisely later on, but I would like to hear about the mood in the industry following the implementation of support measures in response to the imposition of Chinese tariffs. I am thinking in particular of the enhancement of the AgriStability program and the Advance Payments Program. What has the response been like? Are people very grateful to you because this assistance meets their needs, or is there still a sense of urgency because it is insufficient?

[Tom Rosser]

I can try to answer. I know the committee will be hearing from live stakeholders shortly.

I think people recognize that these changes to risk management programs are a step that will help them. Earlier, I forgot to mention that measures had been put in place to promote the biofuel industry. So I think people recognize that it will help, even though I don't think many stakeholders will say it's enough. There is still uncertainty.

We are continuing the dialogue with stakeholders and we will consider the next steps. We're monitoring the situation closely.

[Yves Perron, Bloc, Berthier—Maskinongé, QC]

I'm going to talk to you about another sector, the organic sector, where 45% of Canadian products are exported to the United States. So it is affected by tariffs—in any event, you'll be able to provide me with information on that.

The Chinese market is enormous, particularly for organic yellow peas. Currently, the Chinese seem to be turning to Australia, whose geographic proximity is attractive to them. That creates uncertainty for people in the industry. People are afraid that they will never recover those markets.

You spoke earlier about the Asia-Pacific region. Are there many initiatives underway? Is there any specific plans for the organic sector?

[Tom Rosser]

We have regular discussions with representatives of the organic industry. I know that recognition of organic standards and norms is important for international trade in this sector. We are working to obtain statistics on international trade in the organic sector.

I don't know if Ms. Moran has anything to add. I will simply say that, given the global situation—especially when you consider what is happening in the American and Chinese markets—it is normal for there to be uncertainty and fear throughout the agri-food sector about what might happen from one day to the next.

[Yves Perron, Bloc, Berthier—Maskinongé, QC]

I would like some additional information from Mr. Rosser or anyone else. I know there's been an enhancement of the AgriMarketing program with the allocation of an additional $75 million.

Is any of that money going to the organic sector? That could help develop other markets in the Asia-Pacific region.

[Christine Moran]

In terms of supports for the sector, the AgriMarketing program is not specifically dedicated to the organic sector, but we are always there to support it. The organic market is like any other market; it takes time to establish. When there are changes or disruptions, for example, it takes a long time to recover.

There is no amount set aside for the organic sector.

[Yves Perron, Bloc, Berthier—Maskinongé, QC]

Are producers in that sector eligible for it? Can they apply?

[Christine Moran]

Yes, absolutely, just like everyone else.

[Yves Perron, Bloc, Berthier—Maskinongé, QC]

Other sectors are also struggling. Today, there is a great deal of talk about customs duties, among other things, but I could also mention Quebec beef producers, who recently contacted me to welcome the decision to raise the ceilings for the Advance Payment Program. However, as it's repeated every year, they said they too could benefit from the program since the price of beef has risen significantly. In addition, financial institutions are not currently willing to finance livestock restocking. A calf that cost $400 to $500 last year costs around $1,500 this year, which makes restocking difficult. If financial institutions do not help them, we will have even less production, whereas Quebec does not currently produce enough beef for consumption.

I am informing you of the situation so that you can discuss it further. Other sectors would need a permanent increase of this amount so that producers do not have to ask for help again nor wait for an international crisis to see it increased. I know that you cannot make a decision because you are civil servants, but I would still like to convey this message to you. Should the topic arise in discussions, you could seize the opportunity. It's just a suggestion.

The United States has set tariffs of 25% on everything. How much of our agricultural and agri-food exports are affected by these tariffs? I am very concerned about the agri-food sector. Why were the countermeasures in response to the tariffs withdrawn? Producers are still greatly affected by the tariffs because many inputs come from the United States.

How much of the sector is affected by the tariffs right now? Do you have any numbers? We'll need a brief answer to that question.

[Tom Rosser]

We estimate that the vast majority of Canada's exports to the U.S.—96.5%—are duty-free as a result of their CUSMA compliance. However, there is indeed the possibility that inputs and such things could be indirectly affected.

[Yves Perron, Bloc, Berthier—Maskinongé, QC]

I'm indirectly bringing this to the attention of your department. On top of that, we still have the 5% left over for our main client.

Thank you very much.

[The Chair, Liberal, Michael Coteau]

That's perfect. Thank you.

We'll go to the second round. We have Monsieur Gourde for five minutes.

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

Thank you, Mr. Chair.

Mr. Rosser, what percentage of Canadian canola production is sold to China?

Are Canadian canola exports to China comparable to those to the United States, or is China our best customer?

[Tom Rosser]

If I remember correctly, China received about two thirds of our total canola seed exports last year.

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

Geopolitics often plays a role in these situations. China's tariffs are retaliatory against Canada because we don't want to import cars made in China, so I would point out to you that, if we ever import Chinese cars, the canola issue may be resolved in the months that follow.

That said, the reflex of Canadian producers next year will probably be to plant a lot less canola. However, after a production change, it can take a few years to get back to the same production levels.

In addition, China's tariffs will no doubt force Canadian producers to store reserves, because they won't be able to sell everything and won't necessarily want to sell at a discount. Sometimes it's better to keep it in stock than to give it away. This will likely require additional silos. The reflex of our Canadian producers will undoubtedly be to turn to other sectors.

In the long term, what does Canada's production represent in relation to global production?

Two thirds of Canada's total exports are to China. What proportion of the global market do they represent? Is it a small share, like one, two or three per cent, or is it rather a considerable share?

[Tom Rosser]

I don't have the exact numbers, but I can assure you that Canada is the largest producer of canola in the world.

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

As part of the negotiations, it's important to remind China that, if Canadian producers decided generally to stop producing canola, the world price would likely increase because there would be less canola in stock. There are stock assessments of canola globally. If Canadians shun that production, as inventory declines, China will have to pay more to source it elsewhere. We could present that argument to our Chinese friends. In the short term, it may not scare them, but they're usually very sensitive to those kinds of arguments and they look at global stocks closely.

Where does the other one third of Canada's canola exports go? Is it to a group of countries or mainly to the United States?

[Christine Moran]

There are markets for canola pretty much everywhere. The producers who will be testifying soon will no doubt tell you that. Japan is an important market. The U.S. is also an important market, especially for biofuels. There are exports to Europe as well. However, it is clear that China is a very important market in terms of the percentage of exports, although it is a sensitive market in terms of technical barriers.

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

Canola could be transformed into oil. Unfortunately, I think China has a tariff on canola oil as well. However, this product is very interesting and is popular around the world. As part of that production, you can also turn the residue into meal. Canola meal sells very well across Canada.

Could there be a program or an incentive to help Canadian producers and processors move in that direction to increase our self-sufficiency in canola oil production?

[Tom Rosser]

I can confirm that there has been a significant investment in canola processing in recent years, especially in Saskatchewan. More and more canola oil is being manufactured for domestic consumption as well as for export. In addition, to diversify canola markets, we can also try to increase the use of canola oil in biofuel production in Canada.

[The Chair, Liberal, Michael Coteau]

Mrs. Harrison, you have five minutes.

[Emma Harrison, Liberal, Peterborough, ON]

Thank you for being here.

I was born and raised on a beef farm in my riding of Peterborough. I took that tradition on in the last few years with my husband and my young family. We've experienced a significant drought in central Ontario and across Canada, which has been a huge stress. I just wanted to give a little background. My passion for agriculture runs deep.

I guess my question for you today is this: How is the department coordinating with Global Affairs Canada and Agriculture and Agri-Food Canada to mitigate the financial impacts of tariffs on affected sectors?

[Christine Moran]

Thank you.

One thing we have is people working out of embassies in order to support Canadian exporters: value-added processing and the commodity sectors. We see that having people on the ground working in the embassies is a really important avenue to ensure that there is dialogue with the importer and also to support the exporters on the ground.

We're coordinating with our colleagues at Global Affairs to coordinate on trade missions and ensure that we are plugging agriculture, producers and value-added processing into all of those missions as well.